Low to moderate risk fixed income investments
As a retired couple we find interest rates are so low that our income has suffered. Can you recommend some low to moderate fixed income investments that will ease our situation. Thank you.
Terry Says
The higher the interest rate, the greater the risk. And the risk is not just “default” — but price risk, if you need to sell the investment to get cash for some purpose. I know it’s tough to live in low-interest rate times — but too many people are reaching for yield without recognizing the risks, especially if there is an economic slowdown.
Have you considered buying 3 and 6 month Treasury bills direct from the government? You can do that at TreasuryDirect.gov. In fact, here’s an article on how to do it.
At least you won’t pay state income taxes on the interest!
If you have enough money, consider searching for higher FDIC-insured yields by using the servicesof MaxMyInterest.com. Here’s an article I recently wrote about this company.
But anything longer than one year has some rate risk. And be sure to stick with either Treasuries or FDIC insured CDs, which these recommended sites provide.
