PFFA - Uncertain Times? Lower Risk Income To Sleep Like A Baby: PFFA
2024-08-03 07:35:00 ET
Summary
- Most fixed income investments provide low yields in exchange for greater safer; we discuss one offering safer income and higher yields.
- Active management has made all the difference vs. its passive peers.
- Dramatically improve your retirement income stream in one move.
Co-authored by Treading Softly.
As you age, it's an increased allocation to fixed income is recommended in your portfolio for better risk management. This is largely because fixed income is considered to be a low-risk and lower-volatility asset glass with better consistency in income generation than riskier investments like common equity. This is one reason why the 60-40 portfolio is very popular for people approaching retirement. If you're using a term retirement fund in your 401(k), you're likely starting out with a higher exposure to common equities, and that exposure winds down as you approach your retirement date....
Uncertain Times? Lower Risk Income To Sleep Like A Baby: PFFA