It’s entirely possible the next big shoe to drop in retirement planning is the average retiree chasing yield to boost their retirement income. This may come in many forms, including investment in longer term and/or lower quality bonds, limited partnership, etc.
Chasing yield can be a very dangerous game. While many rates look attractive, anything that seems too good to be true probably is in some way or other. Take for example teaser rates, fixed annuity guarantee rates (which come with many stipulations), or excessively high dividend payouts.
FINRA warned investors recently about chasing yield through largely illiquid and highly confusing REITS (real estate investment trusts). These are NOT to be confused with the REIT ETF’s (exchange traded funds) we use for our clients here at REDROCK WEALTH MANAGEMENT. These are distinctly different securities which have many confusing nuances.
