Low bond yields have called into question the safety of the 4% withdrawal strategy, while other avenues for extra retirement income have their own pros and cons, says Morningstar's David Blanchett.
Bonds are a better option than cash and less volatile than stocks, but investors should be mindful of headwinds and possibly rethink their fixed-income allocations, says Morningstar's Christine Benz.
Morningstar's Eric Jacobson outlines three short-term bond funds that can protect against rate sensitivity, but mind the risks as such funds aren't cash substitutes.
Municipal bond mutual funds recorded a second consecutive week of strong flows, as funds that report their flows weekly saw $1.44 billion in inflows for the week of Jan. 16.