A New Era of Income Investing Is Turning Boomers Into Bond Buyers

When it comes to the baby boomers’ run of investing luck, timing has been on their side. 

Decades of stellar stock-market returns produced by a series of bull markets that began in 1982 coincided with boomers’ prime working years and made their nest eggs grow.

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As the baby boomer generation enters their later years, the landscape of income investing is changing drastically with more boomers choosing bonds, dividend stocks, and other income investments over common stock investments. Boomers are shifting away from the traditional stock-focused investment strategy they’ve used for the past several decades, and it’s creating an entirely new era of income investing.

The major driving force behind this trend is the need for secure, reliable sources of income during retirement. Bonds and other fixed-income investments are low-risk and can provide a steady stream of income over a long period of time. Dividend stocks are a less traditional form of income investing, but these stocks can pay out regular dividends which can then be reinvested in other stocks or used to supplement an income.

These forms of income investing are appealing to boomers who are looking for ways to ensure their financial stability for the long-term and reduce the risk associated with a volatile stock market. With the stock market having significant ups and downs, these more conservative investments offer a safety net that can ensure the stability of one’s overall portfolio.

Boomers are no longer just stock investors and their shift away from stock-focused portfolios is changing the face of income investing as we know it. By investing in bonds, dividend stocks, and other income investments, boomers can ensure their financial security for the future.

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