Quote Of The Week: Finding Income Outside The Box

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You’ll have to look far beyond the traditional bond index funds to find the income you need in today’s market.

“Given the state of the global economy, 10-year rates are not going back to 5% or 7%.  Waiting for rates to rise and the market to provide you with a high level of income—it’s just not going to happen.

If you are an income investor, you should generate income from all asset classes rather than just bonds.  Just focusing on bonds for your income isn’t the best approach. You should look at the equity markets to generate some income.”

Krishna Memani, chief investment officer and head of fixed income at Oppenheimer Funds, and portfolio co-manager of Oppenheimer Global Strategic Income.  Mr. Memani participated in Barron’s Income Investing Roundtable on “Income Hunters: Where to Invest When Rates Rise,” on August 8, 2015.

During the Roundtable, Memani said income-seeking investors will need to cast a wider net than in the past, and might want to look at municipal, corporate, high yield and emerging market bonds, as well as MLPs, REITs, and senior corporate loans.

About Mari Adam

Mari Adam, Certified Financial Planner™ and President of Adam Financial Associates Inc, has been helping individuals and families chart their financial futures for over twenty-five years. Have a question about your financial situation? Ask Mari!

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