Searching for Safety and Security in Retirement
July 22, 2020 by Brendan Connerton
It is not news to anyone that interest rates are low, and have been for quite some time. Historically retirees were able to cover daily living expenses with fixed income portfolios as a key component of their overall retirement plan.
Times are very different now, and investors and clients are having a tough time searching for yields for income using highly rated bonds or bond portfolios. Bank CD rates and other fixed interest paying investments are at all-time lows. I’ve heard of a number of different solutions that advisors are deploying; one of the most concerning to me was hearing that advisors were extending duration on bond portfolios to chase yield.
I’m here to ask — why?