While public attention is captured by negative headlines and volatility in the equity and commodities markets, the conversation I can’t seem to get away from during client meetings involves income, or more specifically:
- The need to generate income (from current financial assets and in retirement); and
- the lack of income now provided by CDs, US Treasury Bonds and high grade municipal bonds ~ traditional mainstays of retirement portfolios.
These questions are coming up with increasing frequency:
“How do I fill the “income gap” between my lifestyle spending needs in retirement and the amount of interest income or investment yields I can obtain in current market conditions?”
“Can I afford to keep waiting for CD rates to go back to 5%?”
“Bonds only give me downside risk. Is there really a solution other than waiting for rates to go back up?”
A Thoughtful Approach to Wealth Planning and Fixed Income
Scottsdale Wealth Planning’s solutions to these pressing questions are rooted in a thoughtful evaluation of the vast array of choices in income-oriented investments. This goes beyond just considering the usual asset class suspects. It incorporates genuine diversification by considering asset classes that:
- Provide consistent above average yields; and
- Have risk characteristics that offset each other when held together in portfolio.
This thoughtful approach takes advantage of our ability to build client portfolios with real diversification, and not only the appearance of diversification. By achieving real diversification, our client portfolios not only produce a significant income advantage over current “plain vanilla” investment yields, but experience less principal fluctuation in the kinds of volatile market periods we recently encountered.
To learn more about how Scottsdale Wealth Planning closes the “income gap” CONTACT ME.
And we love to hear from you! How do YOU plan to fill the income gap in this era a low-rate CDs?