Starving for Fixed Income? How Can I Help?

May 16, 2023 By E.J. Smith - Your Survival Guy

By Shchus @ Shutterstock.com

Starving for fixed income? Looking for a stream of cash you can live with and live on? I hear you. When rates are this high, I pay attention. Because with this generational opportunity come lots of decisions. You have a chance to get your lazy cash out of the bank. You have an opportunity to park it in my favored Fidelity Treasury Money Market, yielding around 4.5% today.

When you move your lazy cash from the bank and invest it, you get paid a handsome rate for your efforts. Isn’t that the way it’s supposed to work? You turn the tables. You invest. You win. I like that.

Investment Concerns? Save Money. Get My Friday Email. It’s Free

What about CDs, you ask? I’m not a fan. As with most things, there are exceptions. In certain cases, they work, but they’re not as liquid as a money market. Lori Ioannou describes some of the problems with CDs in The Wall Street Journal, writing:

Your money typically is locked up until the CD matures. Some come with early withdrawal penalties, which can be a flat fee or percentage of interest earned. They carry interest-rate risk. Some brokered CDs have call options.

What about an annuity? Rat food. An insurance product tied to the financial strength of an insurer.

Remember 2008? What could possibly go wrong?

When it comes to your streams of income, Your Survival Guy favors multiple targets. A diversified mix of products carefully crafted for your income needs. A plan that puts safety first.

Action Line: Don’t let this generational opportunity pass you by. Don’t be sold products that aren’t the best option for you. Work with a fiduciary. Get it in writing. Solve your fixed income needs. I can help.

P.S. Tomorrow, I want you to “Tell Me,” How Are You the Millionaire Next Door?

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E.J. Smith - Your Survival Guy

E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. His focus at all times is on preparing clients and readers for “Times Like These.” E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zildjians. He grew-up worshiping Neil Peart (RIP) of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West (RIP JB) and Paris. Please get in touch with E.J. at ejsmith@yoursurvivalguy.com To sign up for my free monthly Survive & Thrive letter, click here.

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