Should I consider fixed income?

Fixed-income instruments, such as government or high-grade corporate bonds and certificates of deposit (CDs), allow you to grow your money modestly without risking losing what you’ve already put in. This can be a source of steady income that also works to counter the volatility of equity markets. One way to approach fixed income is to ladder bonds and CDs, which means you invest in a variety of them with different maturity dates; one can end after one year, another can end after two years, and so on and so forth. Then, as an investment matures, you can use it to meet your income needs or reinvest it. That way, you maintain regular income while avoiding some of the vagaries of changing interest rates.