The Art Of Building A Retirement Income Floor

The GNG community is rapidly growing. And that has many benefits, including diversity among readers. We have college students, multi-millionaires, business owners, teachers, and many retirees. That last group deserves a lot of attention for a number of reasons. For starters, retirement seems to be the goal of almost everyone operating in financial markets. Some aim for an additional nest egg, while others have the goal to retire as early as possible to focus on the things they enjoy doing most in life. Luckily, I'm in the group that already has a hobby for a job. As I always joke, if you gave me $50 million, I would still prepare my next article, just from a different location and with a slightly more expensive car in the driveway. But this isn't about me. Today's article is about Bob. Bob, whose real name isn't Bob, is a reader who asked me about retirement investing the other day. He officially retired on June 4 and reached out to me about a few important topics. While I am not a financial advisor who can give personalized financial advice, I can answer these questions from a "what I would do" setting and use the opportunity to create value for everyone in retirement or close to retirement. He'd built his portfolio over the years using BDCs like (ARCC), (TRIN), and (CSWC), and CEFs like (ADX), (BME), (HTD), and (UTF). He'd done well. He'd gotten himself and his wife to a place of real financial security. And that alone is great. But now the game was changing. The accumulation phase was over. And Bob wanted to know something a lot of retirees quietly wonder but rarely ask out loud: "If I add preferred stocks and baby bonds to my portfolio, does that actually reduce my risk?" It's a great question. And the honest answer is: it's complicated. Now, let me walk you through it. Because even if you're not Bob, I'd bet a lot of you are standing in the exact same doorway he is - or you will be soon.