The potential benefits of fixed income investments make them a popular choice for people preparing for and living in retirement. Your financial professional can incorporate fixed income solutions—both taxable and municipal—into your portfolio to help build and support your wealth through your retirement years.
Key benefits of fixed income
- Stability and predictable income streams — Know what to expect with more reliable returns
- Portfolio diversification and risk mitigation — Balance your portfolio and reduce overall volatility
- Tax considerations — Municipal and other fixed income investments may offer tax-efficient income
- Credit quality considerations — Choose from a range of investment-grade options to match your comfort level
Fixed income options
- Municipal and corporate bonds
- Certificates of deposit
- Treasuries and agencies
- Mortgage-backed securities
- Preferred stock
- Structured investments
- Unit Investment Trusts
Beyond traditional income generation while living in retirement, fixed income securities provide portfolio diversification and risk mitigation that may become increasingly valuable as portfolios grow in complexity. For wealth preservation strategies, for example, the potential benefits of fixed income investing warrant careful consideration.
Strategic considerations for complex needs
- Yield optimization across the credit spectrum — From investment-grade corporates to municipals, opportunities vary significantly by sector
- Duration management — Tactical positioning along the yield curve requires periodic assessment
- Tax alpha generation — Municipal bonds and tax-advantaged structures can enhance aftertax returns meaningfully
- Credit quality calibration — Balancing yield enhancement against credit risk demands rigorous analysis
- Liquidity considerations — Portfolio construction must account for both market liquidity and individual security characteristics
A more common strategy to employ with fixed income investing is laddering—systematically deploying capital across the fixed income options with staggered maturities. Such a disciplined framework may help you achieve your wealth planning goals and timelines.
Effective fixed income investing and strategy implementation require robust credit research, trade execution capabilities and regular portfolio monitoring.
You can expect that with the RBC Wealth Management Fixed Income Advantage. RBC Wealth Management provides clients and financial advisors with direct access to experienced traders and strategists who deliver daily market analysis, credit assessments and portfolio proposals across the entire fixed income spectrum.With RBC Wealth Management, you have access to fixed income expertise, including inhouse strategists and traders. Ask your financial advisor for more information.