Play The Wealth Gap For Retirement Income
In my last post, I suggested putting a modern day twist on the old laddered CD strategy by using laddered dividends as a means of generating retirement income. Similarly, investors seeking retirement income might want to consider a variation on a traditional concept called the fixed income barbell.
A basic barbell strategy is formed when you buy a series of short-term and long-term bonds, avoiding anything in the middle. By concentrating on maturities at opposite ends of the spectrum, investors historically have been able to create a comfortable amount of interest income from the long end of the yield curve while using the maturities at the short end for quick cash to reinvest when interest rates are rising.
Obviously this time-tested fixed-income generating strategy isn’t going to work anytime soon because we know our friends at the Federal Reserve aren’t planning on raising interest rates until maybe mid-2013. Therefore, with time on their side,Moncler Jacket investors who are hungry for extra retirement income can play the rising wealth gap instead of waiting for interest rates to rise.
The old cliché, “The rich get richer and poor get poorer” seems truer than ever.toronto raptors jerseys The Census Bureau recently reported that the number of Americans living below the poverty line rose to a record 46 million last year.bucks jerseys That’s the third straight annual increase and represents the largest number of Americans designated as poor in 52 years of reporting.utah jazz jerseys
At the other end of the spectrum, the average CEO’s salary at the 200 largest American companies rose 20 percent in 2010 to $11.7 million, with CEO bonuses at 50 major corporations rising 30.5 percent,san antonio spurs jerseys representing an average bonus of $2.5 million.
In my last post, I suggested putting a modern day twist on the old laddered CD strategy by using laddered dividends as a means of generating retirement income. Similarly, investors seeking retirement income might want to consider a variation on a traditional concept called the fixed income barbell.
A basic barbell strategy is formed when you buy a series of short-term and long-term bonds, avoiding anything in the middle. By concentrating on maturities at opposite ends of the spectrum, investors historically have been able to create a comfortable amount of interest income from the long end of the yield curve while using the maturities at the short end for quick cash to reinvest when interest rates are rising.
Obviously this time-tested fixed-income generating strategy isn’t going to work anytime soon because we know our friends at the Federal Reserve aren’t planning on raising interest rates until maybe mid-2013. Therefore, with time on their side,Moncler Jacket investors who are hungry for extra retirement income can play the rising wealth gap instead of waiting for interest rates to rise.
The old cliché, “The rich get richer and poor get poorer” seems truer than ever.toronto raptors jerseys The Census Bureau recently reported that the number of Americans living below the poverty line rose to a record 46 million last year.bucks jerseys That’s the third straight annual increase and represents the largest number of Americans designated as poor in 52 years of reporting.utah jazz jerseys
At the other end of the spectrum, the average CEO’s salary at the 200 largest American companies rose 20 percent in 2010 to $11.7 million, with CEO bonuses at 50 major corporations rising 30.5 percent,san antonio spurs jerseys representing an average bonus of $2.5 million.
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