UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: pauleckler Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35392  
Subject: Re: supplement income Date: 9/18/2001 10:26 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
Welcome Duerre. The basic fixed income investment for the purposes you describe is probably a laddered maturity bond portfolio invested in investment grade corporate bonds with maturities maybe up to about 10 years. The ladder provides steady income, but frequent maturities gives you access to funds for unexpected expenses or you have ability to sell the bonds prior to maturity if needed.

You can improve the yield somewhat by incorporating some preferred stocks, lower rated bonds, REITs, or royalty trusts in the mix.

Fixed income investments do not have much growth potential nor do they provide much protection from inflation. For that you should invest part of the funds in stocks.

The best approach to the overall problem is to sit down and work out what your income needs are likely to be during retirement. Look at what sources of income you will have and from that how much income you need from these investments. Any beyond your basic needs should be invested in stocks.

Fooldom offers an on-line seminar on retirement planning and there are books on the subject. Otherwise, you may need the assistance of a financial planner to work out the details.

Best of luck to you.
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Value Hounds

Considerable Headwinds for Profire Energy?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement