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Alan Haft

Higher Yield in Low Yield Times

Should you or your clients invest in bonds, CEFs, structured notes or other funds this year? A cheat sheet spells out the details.

January 23, 2012
by Alan Haft

With interest rates still quite low and the Federal Reserve making it clear it has no plans to raise rates for at least another year or two; I am often asked by investors where to find higher interest or income from investments.

Without a doubt, over the last year or so, this subject has by far been the most common one I encounter and the trend through 2012 and into 2013 will most likely continue.

Given the widespread interest in the topic, what follows is a quick cheat sheet of some potential options. Consider this a starting point, keeping in mind the enormous number of factors to address before making investment decisions  for yourself or your clients.

That said, I do hope this cheat sheet can serve as a quick reference guide as to:

  • Several choices we have for income generating investments,
  • Some quick pros and cons of each choice,
  • The range of interest that can generally be expected from each, and
  • Places to get information/research.

While some of the items on this list will be quite familiar and won’t need much of an explanation, others might be a little more unfamiliar. Indeed, this is just a limited selection. We were unable to include every type of investment.

Click here to view the table.

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Alan Haft is an investment advisor representative with an insurance license, author of three books including the national bestseller, You Can Never Be Too Rich, and makes frequent appearances in national print, television and radio media such as The Wall Street Journal, Money Magazine, CNBC, BusinessWeek and many others.

For full disclosure, Haft is a part of a firm that utilizes all industries which typically includes us receiving percentage based fees for brokerage services as well as commissions when implementing insurance based plans. Haft does not work for any particular financial company or industry nor should this column be construed as an endorsement or condemnation for any particular product. Readers should note that all views and vendor recommendations as expressed in this article are solely the author’s and do not necessarily reflect the views of the AICPA CPA Insider™ or the AICPA.

* This article is not intended to provide financial planning, tax or legal advice and should not be relied upon as such. Any specific tax or legal questions concerning the matters described in this article should be discussed with your tax or legal advisor.