This retirement investment generates steady income without dramatic risk

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OPINION: Bonds aren't the best retirement investment anymore, Mitch Tuchman writes. Instead, turn to preferred stock, which provides better returns without a huge risk.

One of the most challenging aspects of managing money in the past few years has been extraordinarily low yields from government bonds — bordering on zero and even negative when you consider inflation.

A lot of retirement investors find preferred stock mystifying. That’s because it seems to be two things at once: a bond and a stock. Being “junior” means that, in a bankruptcy, bond investors are repaid ahead of preferred stock investors. However, preferred stock investors are in turn repaid ahead of common stockholders.

So what are the potential downsides? Preferred stocks are stocks. They are by definition riskier than bonds.

 

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Every investor knows it was just a place to stash money. Same as gold. People panic, especially when the media is blasting wage & savings garnishment.

Try buying goods ones and you’ll find your order never filed at a good price.

Bonds are very high risk at these levels.

You’d have to be pretty stupid to by bonds these days lmao

Who is buying bonds with negative real rates?

thanks

There is no free-lunch. 🙄.

How's that without a huge risk? Preferred ranked lower than bonds & preferred dividends could be suspended. Depending on the company you invest, there is always a risk. Clown like you has obviously without any basic financial knowledge & shouldn't be writing such opinions.

What does good will hunting got to do with this haha

Ya......

thanks for this news

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