BLESSED WITH LONG LIFE. HIT BY LOW YIELDS.
TIME TO MAKE A CHANGE.
Living longer in a world of low yields and returns means investor portfolios need to work harder than ever. People are thinking, "I need more income to retire," or "I want my money to grow but can't handle the market's ups and downs."
To help investors lead the lives they've imagined, here are three strategies to consider.
Traditional bond funds experienced losses as interest rates spiked in 2013. With yields today near historic lows and rates poised to rise, your once-thought low risk bond investments could lose even more ground. To help your clients keep their "safe" money safe, it is important to rethink their bond approach. Consider expanding their investment range beyond the traditional strategies that may not provide the returns and protection investors have come to expect.
Historically low yields within traditional income sources means investors need to consider alternative strategies to help reach their goals. Generating income, but not overreaching will be key. This means boosting yield through a flexible approach to income, putting bonds that trade based on credit risk, and high-dividend-paying equities to work, or generating tax-advantaged income with municipal bonds.
As your clients live longer, their portfolios need more of a focus on long-term growth. However, as the stock market has approached new highs, fears of volatility linger. To help achieve growth with downside protection, consider tailoring a mix of solutions into a well-diversified growth portfolio.
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