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  • Michael Livian

Income investors get used to more volatility

Robert Powell from The Wall Street Journal’s Market Watch writes a weekly column on retirement investing. Last week he contacted us for some opinions, following the wild moves in the bond market.

We expect volatility to continue to surge across asset classes and suggest that income investors stick to a sound long term investment plan: do not get distracted by market noise! The main risk that retirees face over the next decade is inflation risk. In particular, rent increases and health care costs can become very tolling for people that no longer have earned income.

Luckily, there are ways to invest in income producing assets and protect against inflation at the same time. Some examples are Master Limited Partnerships, Emerging Market bonds and certain high quality “fixed to floating” Preferred Shares.

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