How to Invest for Fixed Income

There are different methods for investing in fixed income, depending on your goals and your appetite for risk. Investment in fixed income instruments may allow you to receive a predictable amount of money for the rest of your life. These instruments may have different risk levels depending on the underlying assets. Consider investing only a portion of your money in fixed income assets. Use these ideas to help you find investments for fixed income.

Instructions

1. Consider investing in a fixed income mutual fund for income. These funds may invest in high dividend paying stocks, CDs, corporate bonds, government bonds and insurance contracts. They pay a relatively stable rate of return, distributed to fund owners as interests and income.

   The distribution frequency may be monthly, quarterly, semiannually or annually. Risks are shared by all fund owners. You can buy fixed income funds at major mutual funds companies.

2. 

   Find out if annuity contracts match your investment style and risk appetite. An annuity is a contract between an insurance company and the investor. The contract spells out the interest rate percentage, amount of the payments and the dates among other terms.

   Annuities generally provide a fixed payment amount for the rest of your life; they also pay a death benefit. Many people buy annuities for retirement accounts. Annuities are sold by insurance companies.

3. Consider government and corporate bonds for fixed income investment. Bonds may be sold directly by the issuing entities or through brokers. Most bonds pay a fixed interest amount periodically. Bonds have different investment ratings from the safe and conservative to high yields and junk bonds.

4. 

   Consult a financial adviser or a financial planner at one or more of the mutual fund companies, insurance companies or broker. Discuss your portfolio strategy and style and your investment goals. Find out if any of these products are a good fit in your portfolio. These products are investment vehicles, not savings and they are not guaranteed.

   Read all products prospectus before investing.

   Understand all the fees and commissions charged.