INCOME

If you are seeking income, investment strategies that worked over the last 15 or 20 years may not necessarily work today.
History shows that everyone needs to plan for uncertain markets and tap into new opportunities. We leverage our best thinking to help today’s income investors take advantage of the broadening investment landscape, while addressing their tolerance for risk and need for current and future income.

Government Bonds

Government Bonds are simply loans you make to a government, or a government agency to finance projects and other needs. The bond issuer agrees to repay you at a fixed interest rate by a specified date, or maturity.

You may want to consider investing in bonds if:

  • You want to focus on a specific maturity.
  • You’re looking for income that’s free from federal, state, and local taxes
  • You want to complement the mutual funds in your portfolio.

Corporate Bonds

Corporate Bonds are simply loans you make to a corporation to finance projects and other needs. The bond issuer agrees to repay you at a fixed interest rate by a specified date, or maturity.

You may want to consider investing in bonds if:

  • You want to focus on a specific credit quality or maturity.
  • You’d like exposure to certain corporate issuers or to certain industries.
  • You want to complement the mutual funds in your portfolio.

Short-term Debt

Short-term instruments include T-Bills, Commercial Paper, and money markets. These types of investments offer a high level of safety, and are often used for people interested in saving for a major purchase, such as a house, car, or college tuition.

Dividends

Some investors might be suitable for including dividend-paying stocks. While there is no guarantee that a corporation will continue to pay a dividend, there are many companies that have paid regular dividends to it’s shareholders over the years. Stocks can fluctuate in price greatly, and may not be suitable for all investors.

Seeking Income

If you are seeking income from your investments, Global Advisers can show you that opportunities are present even in a low interest rate environment. By including a flexible, multi-asset class strategy into your core portfolio, you could potentially realize additional income opportunities, and help to reduce risk. The chart below shows average historical yields for different types of fixed income products. Depending on your goals, objectives, and risk tolerance, you might potentially increase your income by diversifying your fixed income portfolio with different types of fixed income products.

Go to SEEKING INCOME to learn more.