Heading into 2016, it looked as if income seekers might finally catch a break. With the economy revving up, the Federal Reserve finally lifted its benchmark short-term interest rate last December. In theory, that should have nudged up rates on bank deposits and rippled through the bond world, pushing yields up to more-attractive levels.
Earnings for All
- Bank Accounts: 1%-4%
- Municipal Bonds: 1%-3%
- Investment-Grade Bonds: 3%-5%
- Real-Estate Investment Trusts: 2%-6%
- Foreign Bonds: 3%-6%
- Preferred Stocks: 4%-7%
- Closed-End Funds: 5%-11%
- High-Yield Bonds: 6%-8%
- Master Limited Partnerships: 5%-11%
Yet the markets have largely shrugged at that logic. True, you can now squeeze out a bit more income from money market funds and other types of short-term savings accounts. But long-term bond yields, which the Fed doesn’t directly control, have slumped as investors bet that the economy isn’t strong enough yet to handle higher rates. Buy a 10-year Treasury note and you’ll pocket a 1.8% yield, down from 2.2% at the start of 2016. At that pace, your income won’t even keep up with “core” inflation, which excludes food and energy costs and, Kiplinger expects, will rise 2.4% this year. (All prices and returns are as of March 31.)
But traditional savings accounts and bonds aren’t the only way to go. Opportunities abound in other areas, ranging from high-yield checking accounts to real estate securities and foreign bonds. Investing in these categories involves varying degrees of risk. But blending income from different sources can smooth out the bumps in any given part of the market. Here are 41 ideas for bulking up your income; click through the box at left to sample different levels of risk and return.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
-
Stock Market Today: Dow Drops 971 Points as Powell Pressure Ramps UpPresident Trump is increasing his attacks against Jerome Powell, insisting the Fed chair cut interest rates.
-
Get Netflix, Hulu and Apple TV Plus for Free by Joining T-MobileT-Mobile customers save up to $35/month on streaming services thanks to this Netflix, Hulu and Apple TV Plus bundle. Here’s how to get it.
-
What Is the Buffett Indicator?"It is better to be roughly right than precisely wrong," writes Carveth Read in "Logic: Deductive and Inductive." That's the premise of the Buffett Indicator.
-
CPI Report Puts the Kibosh on Rate Cuts: What the Experts Are Saying About InflationCPI Consumer price inflation reared its ugly head to start the year, dashing hopes for the Fed to lower borrowing costs anytime soon.
-
Fed Leaves Rates Unchanged: What the Experts Are SayingFederal Reserve As widely expected, the Federal Open Market Committee took a 'wait-and-see' approach toward borrowing costs.
-
CPI Report Keeps the Fed on Track: What the Experts Are Saying About Inflation
CPI Disinflation in key areas of consumer prices should help the Federal Reserve stick to its policy path of gradual cuts to interest rates.
-
Blowout December Jobs Report Puts Rate Cuts on Ice: What the Experts Are SayingJobs Report The strongest surge in hiring since March keeps the Fed on hold for now.
-
Fed Sees Fewer Rate Cuts in 2025: What the Experts Are Saying
Federal Reserve The Federal Reserve cut interest rates as expected, but the future path of borrowing costs became more opaque.
-
CPI Report Casts Doubt on Rate Cuts in 2025: What the Experts Are Saying About Inflation
CPI November Consumer Price Index data sealed the deal for a December rate cut, but the outlook for next year is less certain.
-
Rebound in Jobs Growth Keeps Fed on Track: What the Experts Are Saying
Jobs Report No nasty surprises in the November payrolls data leaves a quarter-point cut in play.
