November 11, 2020

Challenges & Opportunities in Fixed Income – An Introduction

A growing number of people are either in or getting close to retirement.  Half of the 73 million baby boomers are 65 or older and the other half will reach that age by 2030.  This is exactly the time people need to increase their allocation to fixed income investments, usually in the form of bonds.  However, the yields paid on bonds are at all-time lows, presenting an enormous challenge.  It may be tempting to simply buy riskier bonds with the highest yields or underweight fixed income altogether and pursue dividend-focused stocks.  These approaches would overlook the importance of a prudent