Morningstar's Guide to Income Investing
We help income-seekers explore their options in a low-yield environment.
Hell hath no fury like a retiree seeking income.
Although bond yields have ticked up during the past year, they’re nothing to write home about: As of this writing, the 10-year Treasury bond yields 1.5% and the 30-year Treasury bond yields 2.2%. Even though ongoing fiscal spending may bolster the economic recovery and stoke inflation, the Federal Reserve has made clear it has no plans to hike rates any time soon.
So what’s an income-seeker to do?
Another is rethinking the idea of “income” entirely and instead focusing on generating cash flows in retirement.
“When yields are meager, as they have been for the past decade, pruning appreciated positions to meet living expenses is a way to raise cash while also reducing a portfolio's risk level,” explains Morningstar's director of personal finance Christine Benz. “Holding a cash ‘bucket’ and/or employing a simple annuity product are other tools that can help stabilize a retiree's cash flows.”
Morningstar’s Guide to Income Investing helps investors explore all their options.
We compare different strategies for generating cash flows, from pure total return to income-centric approaches to annuities.
The noted retirement researcher discusses how pre-retirees and retirees can adjust their plans in times of market stress.
A lower starting withdrawal rate doesn't guarantee you'll have to live on less.
Retirees should consider being flexible with their spending plan.
Financial planner and retirement researcher Jonathan Guyton explains how to implement spending rules that fluctuate with the market--but not too much.
Is the 4% rule too high, too low, or just right?
You diversify your investments; why wouldn’t you diversify how you source your in-retirement living expenses?
What Retirees Get Right About Their Retirement Income
Instinctively, they understand how to stretch their portfolios.
Is the Retirement-Income Party Finally Over?
Today's retirees will have difficulty continuing a long and happy trend.
When Higher Inflation Meets Your Withdrawal Rate
While few are predicting a 1970s-style inflation spiral, it's still worth thinking through how inflation could affect your plan.
Wondering About Withdrawal Rates?
Noted retirement researcher and financial planner Jonathan Guyton visits to discuss his take.
Whether you're in the market for a company paying a juicy yield or one that's growing its payout, here are some things to keep in mind.
Top Dividend-Stock Funds
These mutual funds and ETFs pursue various dividend strategies and earn Morningstar Analyst Ratings for Silver or Gold.
10 Superior Dividend Stocks
These stocks are good choices whether you're looking for dividend growth, down-market defense, or inflation protection.
5 Dividend Stocks That Are Sustainable Twice Over
These stocks offer solid dividends and low ESG risk.
10 Solid Dividend-Paying Stocks on Sale
We think the payouts on these names are sustainable.
Here are the highest-rated mutual funds and exchange-traded funds across a series of taxable fixed-income Morningstar Categories.
Five considerations for those investing in fixed-income funds.
These five questions can help you figure out whether to invest in municipal bonds (and the best way to do it).
Here are the highest-rated mutual funds and ETFs across a series of municipal bond fund categories.
Last year’s turbulent fixed-income market sheds some light on the limitations of intermediate core-plus bond funds.
There are risks and rewards for income-seekers who turn to preferred stocks, REITs, and core-plus bond funds.
Their yields might look tempting, but they come with a few drawbacks.
There’s not much to like when it comes to structured notes.
Although attractive to yield-seekers, REITs aren't as compelling as they used to be.
Low Interest Rates, Unchartered Bond Markets, and the Income Conundrum
Extraordinary times may require adjusting expectations.
Is It the Right Time for Annuities?
Why investors should consider guaranteed income as part of their retirement strategy.
Using Annuities to Mitigate Risk
The Retirement Income Journal editor Kerry Pechter tackles common annuity misconceptions.
These vehicles can be bewildering.
To understand whether these complicated products might suit you, start with the goals you have for your money.
Annuities can offer valuable protection against outliving your assets, but they can also be high-cost and complicated. We dig into some pluses and minuses.
If you've decided to purchase an annuity, you'll also need to think through where to hold it, how much to annuitize, and when to make the buy.