Why and When to Choose Fixed Income Investments
When you were early in your career and retirement was decades away, “wealth management” may not have been something you thought much about. At that time, you may have been more focused on accelerating your career path and making sure you were making the max contribution to your 401k, along with building a comfortable nest egg.
Fixed-income investments are favored by many investors and retirees because they provide a regular income stream. You invest in a class of securities and assets that pay dividends or fixed interest in the form of coupon payments.
Depending on the investment, you may receive coupon payments monthly, quarterly, semi-annually or once a year. When many of these investments mature, you get the principal back.