From super-safe money markets to adventurous MLPs and REITs, we found 33 ways to put more cash in your pocket.
For more than a decade, income investors have been plagued by paucity wrapped in misery. The bellwether 10-year Treasury note has doled out an average 2.6% interest since 2008. Although the Federal Reserve has nudged its target interest rate range to 2.25% to 2.50%, it has signaled that it’s done raising rates for now.
Even worse, the yield on the 10-year T-note briefly sank below the yield on the three-month T-bill—an unusual inversion that can sometimes herald a recession and lower yields ahead (see “Ahead,” on page 12). The takeaway: Locking your money up for longer periods is rarely worth the negligible increase in yield.
What could increase your yield these days? Being a little more adventurous when it comes to credit quality. When you’re a bond investor, you’re also a lender, and borrowers with questionable credit must pay higher yields. Similarly, stocks with above-average yields probably have some skeletons in their balance sheets.
You can ameliorate credit risk—but not eliminate it—through diversification. Invest in a mutual fund, say, rather than a single issue. And invest in several different types of high-yielding investments—for example, investment-grade bonds, preferred stocks and real estate investment trusts—rather than just one category.
Despite such caveats, income investing is not as bad as it was in 2015, when it was hard to milk even a penny’s interest out of a money market. Now you can get 3.3% or more from no-risk certificates of deposit at a bank. We’ll show you 33 ways to find the best yields for the risk you’re willing to take, ranging from 2% all the way up to 12%. Just remember that the higher the payout, the greater the potential for some rough waters. (Prices, yields and other data are as of April 19.)
2%-3%
SHORT-TERM ACCOUNTS
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
FREE HELP FOR COLLEGEBOUND STUDENTS
This program’s mentors assist applicants as they fill out the FAFSA, write essays and more.
WHAT YOU SHOULD KNOW ABOUT SPOUSAL IRAS
You typically need earned income to contribute to an individual retirement account, but a spousal IRA provides an important exception to this rule.
SELLING SHARES? HERE'S HOW TO MINIMIZE TAXES ON YOUR GAINS
ET'S say you've been regularly buying shares in a booming tech company over the past few years, but now you want to start taking some of those profits, perhaps to rebalance your portfolio.
Strategies for Novice Investors
AS part of a lifes kills program for young, single mothers, I was asked to teach a class on how to get on top of your finances.
ANSWERS TO YOUR 529 PLAN QUESTIONS
Thanks to recent policy changes, families have more options for what to do with money sitting in these tax-advantaged accounts.
Rate-Cut Winners and Losers
NOW that the Federal Reserve has cracked the interest rate ice, the next development will be to separate winners from losers.
SHOULD YOU BUY THESE RED-HOT FUNDS?
Covered-call ETFs are popular but come with plenty of caveats.
DIVIDEND STOCKS ARE READY TO REBOUND
Our favorite dividend payers are poised to benefit as falling interest rates lure investors back.
IS A 55+ COMMUNITY RIGHT FOR YOU?
These age-restricted developments appeal to older adults seeking abundant amenities and an active lifestyle.
AT LONG LAST, RATES ARE DROPPING
Consider these portfolio moves now that the Federal Reserve has cut its benchmark interest rate.