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.
After heavy flows into fixed income in 2012, investors likely won't see strong capital appreciation in bonds in 2013, says Morningstar's Mike Rawson.
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