Income Investing Tips for Boomers and why they can't do as their parents did…
As Boomers give up on stock gains, they inevitably focus on income investing
, always on the hunt for higher yields. There is no secret to finding higher yielding securities. In one way or the other, a higher yield just means higher risk-- either term risk, credit risk or price risk. Higher yielding securities always have more risk then lower yielding securities. And some high yield securities can even be riskier than a simple basket of stocks yet with a lower expected return. For these reasons, your best opportunity is to ask your advisor to establish a sustainable withdrawal rate and build a diversified portfolio focusing on total return rather than focusing on dividend-producing, interest-paying securities.
Income Investing Tips for Boomers and why they can't do as their parents did