Granted, interest rates are likely to rise soon and bond yields have crept up somewhat, but the transition can be and has been slow.
In the meantime, investors are seeing the value of their money erode over the long term. By the time many investors reach retirement, what they’re able to buy with their hard earned savings will amount to much less than it does now.
The good news is that the global economy appears to be on the road to recovery, and with it, companies are starting to post some strong returns and even stronger dividends.
While there isn’t much yield to be had from investing in bonds and cash, investors should take heart that there is in equities. Those with a long term time horizon need to take stock of their portfolio and think about investing more of their savings in this income-paying asset class.
The latest edition of FE Investazine gives you insight into the best income paying funds on the market – those that will suit you at any point in your investment career. The new tax year is about to begin, so there’s never a better time to take a good hard look at your portfolio.
If there’s anything you’d like to see us cover in future editions of FE Investazine, email editorial@financialexpress.net or leave a comment below this article. Also, take part in our short survey this month for a chance to win a case of wine valued at £250.
