Fixed Income Investment Options Comparison

Fixed income investment options comparison

Fixed income investment options comparison

2017 RANKING & REVIEWS
TOP RANKING BEST FIXED INCOME INVESTMENTS

Finding the Best Investments for Income in 2017

When planning for a comfortable retirement, and possibly an early one, many people wonder about the best fixed income investments.

Investing wisely now in some low to medium risk fixed income investments can mean regular money coming in when you’re no longer working or just want to take some time to enjoy life.

A fixed income investor is simply someone that chooses investments that pay a return on a regular and fixed schedule. Income investing is most popular with retirees, because it can provide a stable and regular source of income.

Comparing fixed income investments

It’s also a smart option for anyone who has come into money through inheritance or winnings, because it can mean ongoing income from investments for many years afterwards.

Award Emblem: Best Fixed Income Investments

If you’re not familiar with the different forms of investment income, it can be confusing to know where exactly to put your money.

While a high interest investment might look tempting, it could also come with a lot of risk. Most people investing for income understand that there is a balance between interest and risk, and they prefer lower risk.

In this article, we are going to take a look at the top six best fixed income investments that you can make in 2017 to plan for your future.

Fixed income investment options comparison

We will also go through some of the frequently asked questions about income investments and what to watch out for when you’re considering fixed income investing for your future.

If you’re willing to be patient and understand that it takes time for monthly income investments to grow, then you’ll have a much better chance of being right where you want to be when the time comes to rely on your investment for stable and regular monthly income.

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AdvisoryHQ’s List of the Top 6 Best Investments for Income

List is sorted alphabetically (click any of the investment for income names below to go directly to the detailed review section for that income investment):

Top 6 Best Income Investments | Brief Comparison & Ranking

Best Income Investments

Average Yield

Investment Category

Ticker Symbol

Alcoa Class B Preferred Shares

5.79%

Preferred Stock

AA.PRB

Fidelity® Intermediate Municipal Income

2.60%

Municipal Bonds

FLTMX

Fidelity® Real Estate Investment Portfolio

2.63%

Real Estate Mutual Fund

FRESX

SPDR® Bloomberg Barclays Short Term High Yield Bond ETF

5.71%

Exchange Traded Fund

SJNK

Synchrony Bank Certificates of Deposit

0.41%-1.80%

Certificate of Deposit

N/A

Vanguard Intermediate-Term Treasury Fund

1.72%

Mutual Fund

VFITX

Table: Top 6 Best Investments for Income | Above list is sorted alphabetically

Best Income Investments FAQ | What Is Investment Income?

Most people are familiar with investing in the stock market and getting money through any gains made if the stock goes up, but they may not be as familiar with fixed income investments.

Image Source: Best Income Investments

These types of investments are meant to provide regular income from investments, not just a one time pay-off.

The best investments for income can come from the following:

  • Interest payments
  • Dividends
  • Capital gains
  • Other profits from investing

Even interest earned in a regular savings account is considered an income investment, although a fixed income investor will usually invest in vehicles that provide a higher return.

Are Taxes Paid on Income from Investments?

Yes, like other income from employment, income investments are also subject to income tax.

Fixed income investment options comparison

The IRS has a Net Investment Income Tax, which is calculated on your payouts from fixed income investments, minus what you initially paid in.

The tax rate for income investing proceeds is currently 3.8 percent Net Investment Income Tax on the lesser of the net investment income, or the amount by which a fixed income investor’s modified adjusted gross income exceeds the statutory threshold amount based on their filing status. 

The statutory threshold amounts are: