Sat. Dec 2nd, 2023

Matthew A. Treskovich

One of the most common problems retirees face is how to create an income stream from their retirement savings.

In decades past, bonds were the tool of choice to solve this problem. Retirees looking to turn their retirement savings into an income stream would buy bonds and live on the interest. This worked well back when   investment-grade bonds provided substantial returns above inflation.

This changed dramatically after the Great Financial Crisis of 2008, when interest rates plunged to historic lows. Since then, it has become increasingly difficult for investors to find bonds that provide a reasonable return. Like all investments, even investment-grade bonds are risky. It only makes sense to own them if the investment returns compensate you for that risk.

More:Your Money: What you need to know about the American Recovery Plan Act

By senior