By Chuck Carnevale:
Once an investor enters retirement it is not uncommon that their investment objective turns from total return to a safe income stream. And if they planned and prepared properly, the income they receive from their portfolios can support their families during their remaining so-called Golden years. Icing on the cake would be the potential for their income stream to grow. Although income growth is important to fight the threat of future potential inflation, it might also be wise and prudent to consider it secondary to safety.
In the past, and during normal economic and market environments, bonds and other fixed income instruments could be turned to for their high yield and safety characteristics. However, with interest rates continuing at historic low levels, the typical advantages to fixed income have been greatly reduced. The highest quality bonds available today offer little in the form of yield, and due to the