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By Jason Stipp | 09-24-2009 11:35 AM

Where to Look for Retirement Income

Morningstar's Christine Benz offers tips and three picks for retirees facing lackluster yield opportunities.

Jason Stipp: I'm Jason Stipp with Morningstar. Although the stock market has seen a nice recovery in 2009, the yield environment for those investors seeking income has still proved to be quite challenging. These are especially investors who are in their retirement years who are depending on their portfolios for their day-to-day living expenses.

Here with me to talk about some of these challenges and some solutions for those seeking retirement income is Christine Benz. She's Morningstar's Director of Personal Finance, and the editor of Morningstar Practical Finance.

Thanks for joining me, Christine.

Christine Benz: Hi, Jason. Nice to be here.

Stipp: It seems like income investors are really in a pickle today. What are some of the factors that are causing the environment to be so hard for those income-seekers?

Benz: One of the key ones is the currently low interest rate environment. That's obviously a huge challenge. Cash yields now are close to zero, and you're not getting paid a lot more even to venture into an intermediate-term bond fund. So the interest rate environment is unfavorable.

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