In spite of the recent Fed interest rate hikes, it's a rough time to be an investor in need of an income. In fact, it has been, for a very long time, and it's only gotten marginally better.
How bad? Well, 10-year Treasury bonds are yielding just 2.7%; 30-year bonds get you just a few ticks over 3%.
Corporate paper isn't much better; you get just about 4%, unless you want to take on truckloads of interest rate risk and go exclusively into long-term bonds. That strategy will get you close to 5%, but the price of the bonds will sink like a rock if rates begin to rise over the next few years.
There just are not a lot of choices available for fixed-income investors.
But with the strategy I'm going to show you in a minute, you'll be able to solve your income problem in one fell swoop…
About the Author
Tim Melvin is an unlikely investment expert by any measure. Raised in the "projects" of Baltimore by a single mother, he never attended college and started out as a door-to-door vacuum salesman. But he knew the real money was in the stock market, so he set sights on investing - and by sheer force of determination, he eventually became a financial advisor to millionaires. Today, after 30 years of managing money for some of the wealthiest people in the world, he draws on his experience to help investors find "unreasonably good" bargain stocks, multiply profits, and build their nest eggs. Tim tirelessly works to find overlooked "hidden gems" in the stock market, drawing on the research of legendary investors like Benjamin Graham, Walter Schloss, and Marty Whitman. He has written and lectured extensively on the markets, with work appearing on Benzinga, Real Money, Daily Speculations, and more. He has published several books in the "Little Book of" Investment Series and a "Junior Chamber Course" geared towards young adults that teaches Graham's principles and techniques to a new generation of investors. Today, he serves as the Special Situations Strategist at Money Morning and the editor of "Max Wealth" and Heatseekers.