Retirees are being confronted with a huge dilemma. In the past, investors on the verge of retirement could simply shift into fixed-income assets and still generate plenty of income to support a comfortable lifestyle.#-ad_banner-# Take the 10-Year Treasury note for example, considered the safest asset in the world for being backed by the full credit of the U.S. government. Just 12 years ago, the yield on these… Read More
Retirees are being confronted with a huge dilemma. In the past, investors on the verge of retirement could simply shift into fixed-income assets and still generate plenty of income to support a comfortable lifestyle.#-ad_banner-# Take the 10-Year Treasury note for example, considered the safest asset in the world for being backed by the full credit of the U.S. government. Just 12 years ago, the yield on these bonds was about 6.7%. That meant an investor with $1 million in retirement savings could generate close to $70,000 of annual income from investing in the U.S. government bonds. And that’s not even factoring in capital gains as yields continued to fall and push bond prices higher. It was a powerful combination that set the foundation for many comfortable retirements. But fast forward to 2013 and things could not be more different. Now, high-risk fixed-income assets such as the… Read More