https://www.google.com/amp/s/seekingalpha.com/amp/article/4352969-fixed-income-etfs-can-work-for-retirees-aimed-for-sweet-spot-no-yield-and-mega-riskFixed Income ETFs Can Work For Retirees If Aimed For The Sweet Spot Between No Yield And Mega Risk
PMAGG, LQD, FLCO
Retirees seeking income remain stuck between a rock (outrageously low interest rates) and a hard place (high risk of reaching for high yield).
Rather than go to one extreme or the other, I suggest aiming at a “sweet spot” near the middle.
In today’s fixed-income market, short-to intermediate investment-grade corporate ETFs seem appealing.
Everybody seems to know about the big-gorilla, the iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD).
For those willing to stray from the beaten path, there are some potentially better choices.
/Fed Chair Jerome Powell may be a Godsend to the Covid-era financial markets, but to retirees, he’s the Scrooge-like boss that keeps pushing wages down toward what has to seem like starvation levels. That’s what the aggressive interest-rate reductions have to feel like to those who aren’t borrowing to launch new businesses but are instead, relying on investment income to live. Lest we be too tough on the guy, we do have to at least remember that the Fed’s liquidity onslaught has done much to rescue principal values from the abyss into which they seemed to be headed back in March. Even so, those who need current income have to do something./
