Fixed Income and Cash Investments

    Stability, Income, and Liquidity—All in One Portfolio


    Whether you're planning for retirement, preserving capital, or seeking predictable returns, fixed income and cash investments offer a reliable foundation for your financial strategy.

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    What Are Fixed Income and Cash Investments?

    Fixed Income refers to investments that pay regular interest—typically with lower risk and more stability than equities. Cash Investments include highly liquid, short-term instruments that prioritize capital preservation and easy access.

     

    Together, they form the bedrock of conservative and income-focused portfolios.

    Why Consider Fixed Income and Cash?

    Capital Preservation: Lower volatility than stocks
    Steady Income: Regular interest payments
    Diversification: Reduce overall portfolio risk
    Liquidity: Quick access to funds when needed
    Tax Benefits: Municipal bonds and certain government securities may offer tax-free income

    Types of Fixed Income Investments

    Government Bonds

    Backed by federal or municipal governments; low risk and tax advantages.

    Corporate Bonds

    Issued by companies; higher yield potential with varying credit risk.

    Municipal Bonds

    Tax-free income for residents of the issuing state or locality.

    Treasury Securities
    Includes T-Bills, T-Notes, and T-Bonds; backed by the U.S. government.
    Bond Funds/ EFTs

    Diversified exposure to multiple bonds; professionally managed.

    Cash & Short-Term Instruments

     
    Investment Type Description

    Money Market Funds

    		 Low volatility, high liquidity, ideal for parking cash.
    Treasury Bills (T-Bills) Short-term government securities; typically mature in under a year.
    Savings Accounts
    		 FDIC-insured, easy access, low yield.
    High-Yield Savings
    		 Better rates than traditional savings, with similar liquidity.
    Short-Term CDs
    		 Lock in a rate for a few months to a year; penalty for early withdrawal.

    Things to Keep in Mind:

    Consider these potential drawbacks:
    • Interest rates affect bond prices—when rates rise, bond values may fall.
    • Inflation can erode purchasing power of fixed payments.
    • Credit risk varies by issuer—government bonds are safer than corporate bonds.
    • Cash investments offer safety but typically lower returns.
    Who Are These Investments For?
    • Retirees seeking predictable income.
    • Conservative investors focused on capital preservation.
    • Anyone building an emergency fund or saving for short-term goals.
    • Investors balancing risk in a diversified portfolio.

    Ready to Start Planning?

    Fixed income and cash investments can bring stability and confidence to your financial plan. Whether you're just starting out or rebalancing your portfolio, we’ll help you find the right mix.

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