No. of Recommendations: 4
*Nothing* solves the problem the OP was asking about. investing where the primary goal is income.... does anyone here feel it's possible to achieve a 5.5% yearly return, with a somewhat low risk portfolio?

I brought up inflation because that's what kills portfolios that are heavily weighted to "low risk income" investments. The protection from inflation comes from much riskier -- and certainly much higher volatility -- stocks.

Neither bond, nor bond funds, nor preferred stocks, nor CDs will solve the inflation issue. CDs and such super-safe investments have trivisl returns, so they are out as a primary vehicle.

Ken French (of Fama/Fench) had an interesting video of what he called "Homemade Dividends".

Bond funds are frowned upon by people who appear to be authoritative. Individual bonds seem to be superior, but as far as I can tell come with a huge inherent risk unless you can do a massive amount of DD investigation. And unless you have a very large portfolio, it's hard to be adequately diversified in bonds, since par is typically $1000 and the typical minimum order size is 10 or 20 bonds.

For a small investor, referreds, limited to a subset that pass a handful of simple rules, seems to me to avoid most of the negatives of bonds. But I'm always ready & eager to hear about something better.

Uh, yeah, I should stop rambling.

So.....anybody have more suggestions for the OP?
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