{"id":26820,"date":"2022-03-24T16:30:53","date_gmt":"2022-03-24T20:30:53","guid":{"rendered":"https:\/\/retirementincomesource.com\/?page_id=26820"},"modified":"2024-02-14T10:59:46","modified_gmt":"2024-02-14T15:59:46","slug":"what-is-fixed-income-investing","status":"publish","type":"page","link":"https:\/\/retirementincomesource.com\/what-is-fixed-income-investing\/","title":{"rendered":"What Is Fixed-Income Investing?"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-page\" data-elementor-id=\"26820\" class=\"elementor elementor-26820\" data-elementor-post-type=\"page\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-7755b491 elementor-section-full_width elementor-section-stretched elementor-section-height-default elementor-section-height-default\" data-id=\"7755b491\" data-element_type=\"section\" data-settings=\"{&quot;jet_parallax_layout_list&quot;:[{&quot;jet_parallax_layout_image&quot;:{&quot;url&quot;:&quot;&quot;,&quot;id&quot;:&quot;&quot;,&quot;size&quot;:&quot;&quot;},&quot;_id&quot;:&quot;5624b2d&quot;,&quot;jet_parallax_layout_image_tablet&quot;:{&quot;url&quot;:&quot;&quot;,&quot;id&quot;:&quot;&quot;,&quot;size&quot;:&quot;&quot;},&quot;jet_parallax_layout_image_mobile&quot;:{&quot;url&quot;:&quot;&quot;,&quot;id&quot;:&quot;&quot;,&quot;size&quot;:&quot;&quot;},&quot;jet_parallax_layout_speed&quot;:{&quot;unit&quot;:&quot;%&quot;,&quot;size&quot;:50,&quot;sizes&quot;:[]},&quot;jet_parallax_layout_type&quot;:&quot;scroll&quot;,&quot;jet_parallax_layout_direction&quot;:null,&quot;jet_parallax_layout_fx_direction&quot;:null,&quot;jet_parallax_layout_z_index&quot;:&quot;&quot;,&quot;jet_parallax_layout_bg_x&quot;:50,&quot;jet_parallax_layout_bg_x_tablet&quot;:&quot;&quot;,&quot;jet_parallax_layout_bg_x_mobile&quot;:&quot;&quot;,&quot;jet_parallax_layout_bg_y&quot;:50,&quot;jet_parallax_layout_bg_y_tablet&quot;:&quot;&quot;,&quot;jet_parallax_layout_bg_y_mobile&quot;:&quot;&quot;,&quot;jet_parallax_layout_bg_size&quot;:&quot;auto&quot;,&quot;jet_parallax_layout_bg_size_tablet&quot;:&quot;&quot;,&quot;jet_parallax_layout_bg_size_mobile&quot;:&quot;&quot;,&quot;jet_parallax_layout_animation_prop&quot;:&quot;transform&quot;,&quot;jet_parallax_layout_on&quot;:[&quot;desktop&quot;,&quot;tablet&quot;]}],&quot;stretch_section&quot;:&quot;section-stretched&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-no\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-4741c482\" data-id=\"4741c482\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-507c6ee4 elementor-widget elementor-widget-template\" data-id=\"507c6ee4\" data-element_type=\"widget\" data-widget_type=\"template.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-template\">\n\t\t\t\t\t<div data-elementor-type=\"section\" data-elementor-id=\"25773\" class=\"elementor elementor-25773\" data-elementor-post-type=\"elementor_library\">\n\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-9626568 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"9626568\" data-element_type=\"section\" data-settings=\"{&quot;jet_parallax_layout_list&quot;:[{&quot;_id&quot;:&quot;530749b&quot;,&quot;jet_parallax_layout_image&quot;:{&quot;url&quot;:&quot;&quot;,&quot;id&quot;:&quot;&quot;,&quot;size&quot;:&quot;&quot;},&quot;jet_parallax_layout_image_tablet&quot;:{&quot;url&quot;:&quot;&quot;,&quot;id&quot;:&quot;&quot;,&quot;size&quot;:&quot;&quot;},&quot;jet_parallax_layout_image_mobile&quot;:{&quot;url&quot;:&quot;&quot;,&quot;id&quot;:&quot;&quot;,&quot;size&quot;:&quot;&quot;},&quot;jet_parallax_layout_speed&quot;:{&quot;unit&quot;:&quot;%&quot;,&quot;size&quot;:50,&quot;sizes&quot;:[]},&quot;jet_parallax_layout_type&quot;:&quot;scroll&quot;,&quot;jet_parallax_layout_direction&quot;:null,&quot;jet_parallax_layout_fx_direction&quot;:null,&quot;jet_parallax_layout_z_index&quot;:&quot;&quot;,&quot;jet_parallax_layout_bg_x&quot;:50,&quot;jet_parallax_layout_bg_x_tablet&quot;:&quot;&quot;,&quot;jet_parallax_layout_bg_x_mobile&quot;:&quot;&quot;,&quot;jet_parallax_layout_bg_y&quot;:50,&quot;jet_parallax_layout_bg_y_tablet&quot;:&quot;&quot;,&quot;jet_parallax_layout_bg_y_mobile&quot;:&quot;&quot;,&quot;jet_parallax_layout_bg_size&quot;:&quot;auto&quot;,&quot;jet_parallax_layout_bg_size_tablet&quot;:&quot;&quot;,&quot;jet_parallax_layout_bg_size_mobile&quot;:&quot;&quot;,&quot;jet_parallax_layout_animation_prop&quot;:&quot;transform&quot;,&quot;jet_parallax_layout_on&quot;:[&quot;desktop&quot;,&quot;tablet&quot;]}],&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t\t<div class=\"elementor-background-overlay\"><\/div>\n\t\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-wide\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-39816fc\" data-id=\"39816fc\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-6fd06d8 elementor-widget elementor-widget-heading\" data-id=\"6fd06d8\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.20.0 - 26-03-2024 *\/\n.elementor-heading-title{padding:0;margin:0;line-height:1}.elementor-widget-heading .elementor-heading-title[class*=elementor-size-]>a{color:inherit;font-size:inherit;line-height:inherit}.elementor-widget-heading .elementor-heading-title.elementor-size-small{font-size:15px}.elementor-widget-heading .elementor-heading-title.elementor-size-medium{font-size:19px}.elementor-widget-heading .elementor-heading-title.elementor-size-large{font-size:29px}.elementor-widget-heading .elementor-heading-title.elementor-size-xl{font-size:39px}.elementor-widget-heading .elementor-heading-title.elementor-size-xxl{font-size:59px}<\/style><h1 class=\"elementor-heading-title elementor-size-default\">What Is Fixed-Income Investing?<\/h1>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-deb2200 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"deb2200\" data-element_type=\"section\" data-settings=\"{&quot;jet_parallax_layout_list&quot;:[]}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-wide\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-top-column elementor-element elementor-element-d75a0d8\" data-id=\"d75a0d8\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-4a278d2 elementor-widget elementor-widget-text-editor\" data-id=\"4a278d2\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.20.0 - 26-03-2024 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<p>Fixed income is commonly referred to as those types of investment securities that pay an investor fixed interest (or dividend) until its maturity date. Upon maturity, investors are repaid the principal amount they had invested. Common fixed-income investments include:<\/p><ul><li>Treasury bonds<\/li><li>Government- and agency bonds<\/li><li>Municipal bonds<\/li><li>Corporate bonds\u00a0<\/li><li>Mortgage-backed securities<\/li><\/ul><p>Certificates of deposit and preferred stock can also be considered fixed-income instruments.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-top-column elementor-element elementor-element-2fa5e7e\" data-id=\"2fa5e7e\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-53d060f elementor-widget elementor-widget-image\" data-id=\"53d060f\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.20.0 - 26-03-2024 *\/\n.elementor-widget-image{text-align:center}.elementor-widget-image a{display:inline-block}.elementor-widget-image a img[src$=\".svg\"]{width:48px}.elementor-widget-image img{vertical-align:middle;display:inline-block}<\/style>\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"1200\" height=\"722\" src=\"https:\/\/retirementincomesource.com\/wp-content\/uploads\/2022\/03\/what-fixed-Income-investing-1200x722.jpg\" class=\"attachment-large size-large wp-image-27335\" alt=\"\" srcset=\"https:\/\/retirementincomesource.com\/wp-content\/uploads\/2022\/03\/what-fixed-Income-investing.jpg 1200w, https:\/\/retirementincomesource.com\/wp-content\/uploads\/2022\/03\/what-fixed-Income-investing-800x481.jpg 800w, https:\/\/retirementincomesource.com\/wp-content\/uploads\/2022\/03\/what-fixed-Income-investing-400x241.jpg 400w, https:\/\/retirementincomesource.com\/wp-content\/uploads\/2022\/03\/what-fixed-Income-investing-768x462.jpg 768w, https:\/\/retirementincomesource.com\/wp-content\/uploads\/2022\/03\/what-fixed-Income-investing-1536x924.jpg 1536w, https:\/\/retirementincomesource.com\/wp-content\/uploads\/2022\/03\/what-fixed-Income-investing-600x361.jpg 600w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-341d538 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"341d538\" data-element_type=\"section\" data-settings=\"{&quot;jet_parallax_layout_list&quot;:[],&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-no\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-2409ded\" data-id=\"2409ded\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-8f42f81 elementor-widget elementor-widget-heading\" data-id=\"8f42f81\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">What are some of the benefits of fixed income investing?<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-49d3987 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"49d3987\" data-element_type=\"section\" data-settings=\"{&quot;jet_parallax_layout_list&quot;:[]}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-wide\">\n\t\t\t\t\t<div class=\"jet-sticky-column elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-d6b16a5\" data-jet-settings=\"{&quot;id&quot;:&quot;d6b16a5&quot;,&quot;sticky&quot;:true,&quot;topSpacing&quot;:180,&quot;bottomSpacing&quot;:50,&quot;stickyOn&quot;:[&quot;desktop&quot;,&quot;tablet&quot;]}\" data-id=\"d6b16a5\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-6e1ca32 elementor-widget elementor-widget-image\" data-id=\"6e1ca32\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"1200\" height=\"839\" src=\"https:\/\/retirementincomesource.com\/wp-content\/uploads\/2022\/04\/what-some-risks-associated-fixed-income-investing-1200x839.jpg\" class=\"attachment-large size-large wp-image-27346\" alt=\"\" srcset=\"https:\/\/retirementincomesource.com\/wp-content\/uploads\/2022\/04\/what-some-risks-associated-fixed-income-investing.jpg 1200w, https:\/\/retirementincomesource.com\/wp-content\/uploads\/2022\/04\/what-some-risks-associated-fixed-income-investing-800x559.jpg 800w, https:\/\/retirementincomesource.com\/wp-content\/uploads\/2022\/04\/what-some-risks-associated-fixed-income-investing-400x280.jpg 400w, https:\/\/retirementincomesource.com\/wp-content\/uploads\/2022\/04\/what-some-risks-associated-fixed-income-investing-768x537.jpg 768w, https:\/\/retirementincomesource.com\/wp-content\/uploads\/2022\/04\/what-some-risks-associated-fixed-income-investing-1536x1074.jpg 1536w, https:\/\/retirementincomesource.com\/wp-content\/uploads\/2022\/04\/what-some-risks-associated-fixed-income-investing-600x419.jpg 600w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-0daffd2\" data-id=\"0daffd2\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-ea30fa8 elementor-widget elementor-widget-text-editor\" data-id=\"ea30fa8\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Fixed income securities are recommended for more conservative investors seeking a diversified portfolio. The percentage of the portfolio dedicated to fixed income depends on the investor\u2019s investment style. This more conservative strategy offers investors returns generated from low-risk securities that pay reliable and consistent interest. Since the risk is lower, the interest payments tend to also be lower. Building a fixed income portfolio may include investing in bonds, certificates of deposit, and preferred stocks. We do not recommend bond mutual funds \u2013 and here\u2019s why:<\/p><ul><li>Bond mutual funds typically have higher management fees than a comparable stock mutual fund.<\/li><li>With an individual bond, risk decreases the longer you hold the security because as you get closer to maturity, the greater the likelihood you will receive your principal back from the company or organization to whom you lent it. This is not true with bond mutual funds because the individual holdings are constantly maturing, being bought and sold, and because bond mutual funds never mature.<\/li><li>In the case of aggressive management, bond mutual funds can take on leverage. If you don\u2019t pay attention to this, you might be exposed to potential capital losses and not even know it.<\/li><li>Monthly income from bond mutual funds fluctuates as the underlying bond assets change.\u00a0<\/li><li>Some bond funds charge redemption fees if you sell your shares within a certain time period.<\/li><li>Certain bond mutual funds may have fees and commissions to the fund company or financial institution that sold you the investment.<\/li><\/ul>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4515b09 elementor-widget elementor-widget-text-editor\" data-id=\"4515b09\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Unlike equities that may not pay frequent income to investors, or variable income securities, where payments change due to some underlying factor \u2013 the payments of the fixed income security, and the dates they are paid, are known up front.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-38ba373 elementor-section-stretched elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"38ba373\" data-element_type=\"section\" data-settings=\"{&quot;jet_parallax_layout_list&quot;:[],&quot;background_background&quot;:&quot;classic&quot;,&quot;stretch_section&quot;:&quot;section-stretched&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-wide\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-8f1ce51\" data-id=\"8f1ce51\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-c33b186 elementor-widget elementor-widget-heading\" data-id=\"c33b186\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">What are some of the risks associated with fixed income investing?<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-fbec553 elementor-widget elementor-widget-text-editor\" data-id=\"fbec553\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Research has shown that even a small fixed income portfolio component, grounded in highly-rated bonds, can significantly reduce your portfolio\u2019s overall volatility without subtracting too much from your portfolio return.<\/p><p>Although there are many benefits to fixed income products, as with other investments, there are several risks investors should be aware of before purchasing them. They are:<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-e128a0f elementor-icon-list--layout-traditional elementor-list-item-link-full_width elementor-widget elementor-widget-icon-list\" data-id=\"e128a0f\" data-element_type=\"widget\" data-widget_type=\"icon-list.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<link rel=\"stylesheet\" href=\"https:\/\/retirementincomesource.com\/wp-content\/plugins\/elementor\/assets\/css\/widget-icon-list.min.css\">\t\t<ul class=\"elementor-icon-list-items\">\n\t\t\t\t\t\t\t<li class=\"elementor-icon-list-item\">\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-icon\">\n\t\t\t\t\t\t\t<i aria-hidden=\"true\" class=\"fas fa-check\"><\/i>\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-text\">Credit and Default Risk. Corporate bonds can make excellent investments. Before selecting an investment, be sure to look at the credit rating of the bond and the underlying company. Bonds with ratings below BBB are low quality and considered junk bonds.<\/span>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t<li class=\"elementor-icon-list-item\">\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-icon\">\n\t\t\t\t\t\t\t<i aria-hidden=\"true\" class=\"fas fa-check\"><\/i>\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-text\">Interest Rate Risk. This risk happens in an environment where the market interest rates are rising while the rate paid by the bond lags. Subsequently, the investor\u2019s capital is tied up in the investment and they cannot put it to work earning higher income without taking an initial loss.<\/span>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t<li class=\"elementor-icon-list-item\">\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-icon\">\n\t\t\t\t\t\t\t<i aria-hidden=\"true\" class=\"fas fa-check\"><\/i>\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-text\">Inflationary Risk. If prices rise or inflation increases, it eats into the gains of the fixed income security.<\/span>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t<\/ul>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-ffa4437 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"ffa4437\" data-element_type=\"section\" data-settings=\"{&quot;jet_parallax_layout_list&quot;:[]}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-wide\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-top-column elementor-element elementor-element-991d520\" data-id=\"991d520\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-55bd40a elementor-widget elementor-widget-heading\" data-id=\"55bd40a\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">How can I invest in fixed income?<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-90d16a1 elementor-widget elementor-widget-text-editor\" data-id=\"90d16a1\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Instead of spending the time to research individual securities and run the risk of choosing the wrong bond, many advisors will just advise you to invest your money in a bond mutual fund to give you instant diversification. If the fund performs poorly, the advisor simply points blame on the bond fund manager.\u00a0<\/p><p>With that said, it is strongly recommended that you seek guidance from an advisor that has the specialized training and knowledge to avoid mistakes and effectively create customized portfolios of actively managed individual fixed income securities.<\/p><p>The most common government securities are those issued by the U.S. government and are generally referred to as Treasury securities. However, many fixed income securities are offered by non-U.S. governments and corporations as well.<\/p><p>Below are the most common types of fixed income instruments:<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-02b297d elementor-icon-list--layout-traditional elementor-list-item-link-full_width elementor-widget elementor-widget-icon-list\" data-id=\"02b297d\" data-element_type=\"widget\" data-widget_type=\"icon-list.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<ul class=\"elementor-icon-list-items\">\n\t\t\t\t\t\t\t<li class=\"elementor-icon-list-item\">\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-icon\">\n\t\t\t\t\t\t\t<i aria-hidden=\"true\" class=\"fas fa-check\"><\/i>\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-text\">Treasury Bills are short-term fixed-income securities that mature within one year. Investors buy the bill at a price less than its face value and investors earn the difference at maturity.<\/span>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t<li class=\"elementor-icon-list-item\">\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-icon\">\n\t\t\t\t\t\t\t<i aria-hidden=\"true\" class=\"fas fa-check\"><\/i>\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-text\">Treasury Notes range between two and 10 years. At the end of the maturity, investors are repaid the principal as well as semi-annual interest payments each year they hold the note.<\/span>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t<li class=\"elementor-icon-list-item\">\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-icon\">\n\t\t\t\t\t\t\t<i aria-hidden=\"true\" class=\"fas fa-check\"><\/i>\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-text\">Treasury Bonds are like the T-note except that it matures in 30 years.<\/span>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t<li class=\"elementor-icon-list-item\">\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-icon\">\n\t\t\t\t\t\t\t<i aria-hidden=\"true\" class=\"fas fa-check\"><\/i>\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-text\">Municipal Bonds are like Treasuries but are backed by a state, municipality, or county instead of the federal government. They can also have tax-free benefits to investors.<\/span>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t<li class=\"elementor-icon-list-item\">\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-icon\">\n\t\t\t\t\t\t\t<i aria-hidden=\"true\" class=\"fas fa-check\"><\/i>\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-text\">Corporate Bonds come in various types. The price and interest rate offered depends on the company\u2019s financial stability and creditworthiness.<\/span>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t<\/ul>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2e7d341 elementor-widget elementor-widget-text-editor\" data-id=\"2e7d341\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Often, investors use a laddering strategy with fixed income instruments. This offers a steady interest income via short-term bonds. This method allows the investor to have access to ready capital and avoid losing out on rising market interest rates.\u00a0<\/p><p>At the end of the day, investing for income can be a more conservative way to get a return on your investment. Whether you\u2019re investing for capital growth or income, it shouldn\u2019t matter as long as you are receiving the income you need from your investments. Given the sheer number of folks entering or approaching retirement age today, and the sheer amount of money still allocated to stocks and other risk-on investments, we\u2019re standing at the edge of a precipice. If the market decides to take another dive, there are millions of Americans who are at or near retirement age that will simply never recover.<\/p><p>On some level, I think most people understand they\u2019re supposed to de-risk as they age. Does that mean switching to a 60-40 bond\/stock portfolio where the majority, 60%, is in bonds and other income-producing investments, with the rest is still in stocks? Does it mean settling for low-yielding Treasury bonds that pay 2, maybe 3%? Most people who are at or near retirement, the types of people who need to be making these sorts of decisions, have no idea, and most advisors don\u2019t either.<\/p><p>More importantly, investing for income requires a kind of experience that most advisors simply don\u2019t have. It\u2019s not as simple as investing in Treasury bonds or buying a CD. It\u2019s a matter of wading into the pool of corporate bonds, preferred stock, and other income-generating investments that most advisors don\u2019t specialize in.<\/p><p>When you buy a bond, you\u2019re actually investing. Better yet, you\u2019re investing by contract. There\u2019s less risk involved. You know how much you make. You know how much you get back. It\u2019s a contract. There\u2019s no funny math, and there\u2019s little guesswork about what will happen. It is what it is. That\u2019s why bonds are probably the single most boring investment on earth. However, at a certain age, you want boring. You want fixed income. You don\u2019t want as much risk.<\/p><p>To find out how fixed income investing may help you generate income during retirement, sign up for a free, no-risk, no-obligation. <a href=\"https:\/\/retirementincomesource.com\/find-an-income-specialist\/\">Find a financial advisor near you<\/a> or <a href=\"https:\/\/retirementincomesource.com\/contact-us\/\">contact us<\/a> for more information today.\u00a0<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"jet-sticky-column elementor-column elementor-col-50 elementor-top-column elementor-element elementor-element-9a063f3\" data-jet-settings=\"{&quot;id&quot;:&quot;9a063f3&quot;,&quot;sticky&quot;:true,&quot;topSpacing&quot;:180,&quot;bottomSpacing&quot;:50,&quot;stickyOn&quot;:[&quot;desktop&quot;,&quot;tablet&quot;]}\" data-id=\"9a063f3\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-1d95c28 elementor-widget elementor-widget-image\" data-id=\"1d95c28\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"1200\" height=\"893\" src=\"https:\/\/retirementincomesource.com\/wp-content\/uploads\/2022\/04\/how-can-i-invest-fixed-income-1200x893.jpg\" class=\"attachment-large size-large wp-image-27345\" alt=\"\" srcset=\"https:\/\/retirementincomesource.com\/wp-content\/uploads\/2022\/04\/how-can-i-invest-fixed-income.jpg 1200w, https:\/\/retirementincomesource.com\/wp-content\/uploads\/2022\/04\/how-can-i-invest-fixed-income-800x596.jpg 800w, https:\/\/retirementincomesource.com\/wp-content\/uploads\/2022\/04\/how-can-i-invest-fixed-income-400x298.jpg 400w, https:\/\/retirementincomesource.com\/wp-content\/uploads\/2022\/04\/how-can-i-invest-fixed-income-768x572.jpg 768w, https:\/\/retirementincomesource.com\/wp-content\/uploads\/2022\/04\/how-can-i-invest-fixed-income-1536x1144.jpg 1536w, https:\/\/retirementincomesource.com\/wp-content\/uploads\/2022\/04\/how-can-i-invest-fixed-income-600x447.jpg 600w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Fixed income is commonly referred to as those types of investment securities that pay an investor fixed interest (or dividend) until its maturity date. Upon maturity, investors are repaid the principal amount they had invested. Common fixed-income investments include: Treasury bonds Government- and agency bonds Municipal bonds Corporate bonds\u00a0 Mortgage-backed securities Certificates of deposit and &hellip;<\/p>\n<p class=\"read-more\"> <a class=\"\" href=\"https:\/\/retirementincomesource.com\/what-is-fixed-income-investing\/\"> <span class=\"screen-reader-text\">What Is Fixed-Income Investing?<\/span> Read More &raquo;<\/a><\/p>\n","protected":false},"author":1,"featured_media":27805,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"elementor_header_footer","meta":{"site-sidebar-layout":"default","site-content-layout":"default","ast-global-header-display":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","footnotes":""},"_links":{"self":[{"href":"https:\/\/retirementincomesource.com\/wp-json\/wp\/v2\/pages\/26820"}],"collection":[{"href":"https:\/\/retirementincomesource.com\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/retirementincomesource.com\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/retirementincomesource.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/retirementincomesource.com\/wp-json\/wp\/v2\/comments?post=26820"}],"version-history":[{"count":18,"href":"https:\/\/retirementincomesource.com\/wp-json\/wp\/v2\/pages\/26820\/revisions"}],"predecessor-version":[{"id":30638,"href":"https:\/\/retirementincomesource.com\/wp-json\/wp\/v2\/pages\/26820\/revisions\/30638"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/retirementincomesource.com\/wp-json\/wp\/v2\/media\/27805"}],"wp:attachment":[{"href":"https:\/\/retirementincomesource.com\/wp-json\/wp\/v2\/media?parent=26820"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}