Dividends4Life: Retirees Have Better Option For High Yields

Retirees Have Better Option For High Yields

Posted by D4L | Sunday, November 13, 2016 | | 0 comments »

The Federal Reserve's zero interest-rate policy has driven investors to lower yielding and higher risk investments, leaving retirees struggling to make their savings stretch. This lack of yield has also forced investors to favor nontraditional investments. Many retirees now look to dividend stocks and junk bonds as a desperate attempt to solve their dilemma. Yield isn't hard to find if one is willing to look carefully. More importantly, we can do this while applying rigorous risk management techniques.

Yield isn't hard to find if one is willing to look carefully. More importantly, we can do this while applying rigorous risk management techniques. An example of an investment with high yield and solid risk management is PIMCO Dynamic Credit and Mortgage Income Fund (PCI). PCI is a closed-end fund (CEF). A CEF is similar to a traditional mutual fund with a couple of key exceptions. For one, CEFs issue shares only once. Once issued, they trade on the market just like any other stock. This differs from open-end funds. Open-end funds constantly create and redeem shares as investors move into and out of the fund.

Source: Seeking Alpha

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