Strategies to help boost your income

When you’re investing for income, you want as much of it as possible. So when interest rates are low, you may be frustrated at the cash flow coming from your Certificates of Deposit (CDs), money market accounts or other income-producing vehicles.

While you can’t change interest rates, you still have some options for potentially increasing the income from your investments. For starters, you may want to consider investing in longer-term bonds or other fixed-rate, income-producing investments.

Apart from lengthening the duration of your fixed-rate, income-producing investments, you might also look at the credit quality of these types of vehicles. Those bonds that receive the highest grades from credit-rating agencies—and are therefore considered the least likely to default—typically pay the lowest interest rates. Conversely, bonds with lower credit ratings usually pay higher rates.

You also might be able to increase your cash flow by investing in dividend-paying stocks. Some companies have paid, and even increased, their stock dividends for many years in a row. If you don’t need to take the dividends as cash, you can reinvest them into the stocks, thereby building your share ownership.

If these suggestions are appropriate for your situation, we would welcome the opportunity to explore them with you further. Please contact us today for more information.