Today’s environment of near historic low yields and heightened volatility has led many investors to ask how to find more income.
Why you need to act:
- Yields on traditional core bonds are almost half of what they were just five years ago.†
- Generating an attractive income stream today can require taking on substantially more risk, so proceed with caution.
- Marginal tax rates are 25% higher than 2012 levels for high-income earners, exacerbating the need for attractive tax-exempt yield.
A flexible investment approach across income-producing asset classes with differing characteristics can help provide higher yields and meaningful diversification.
Bonds that trade primarily based on credit risk, along with high dividend-paying equities, offer a substitute for low-yielding and increasingly vulnerable bond holdings.
Adapt to higher taxes by increasing allocations to attractively-priced municipal funds.