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With short-term bonds, Certificates of Deposit, and money market funds generally still paying only about 0.50-2.00% a year and many stocks near or at their highs since the great bear market of late 2008 to early 2009, a saver or investor seeking income yet with growth to offset inflation may be hard pressed to find a solution that meets his or her needs.
Annuities provide options that may be helpful for some. Yet they can lock one into an approach that ties up funds for the long-term and can be more expensive, since those brokers and insurance companies need compensation for the extra money management responsibilities and risks they are assuming.
Another stratagem is to invest in a portfolio of stocks which overall are providing at once higher yields than short-term savings instruments and lower risks than the major market averages. These may then be held for their growing income stream and/or redeemed later, once the price per share has gone up significantly, and replaced then with other lower risk, higher yielding shares of stock.
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