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This low-maintenance, government-backed strategy offers safety but with modest returns—around 1.39% for the latest tranche. However, for those willing to accept more market exposure, mixing bonds, ETFs, and REITs can significantly boost yields, potentially up to 3-5% for a balanced or dividend-focused portfolio.
Diversifying for Better Yields
A layered approach typically involves several asset classes:
Short-term bills for steady cash flow and liquidity
Bonds and bond funds for stability and moderate yields
REITs and dividend ETFs for higher income and appreciation potential
Each rung on the ladder has a purpose, balancing safety and growth, designed to withstand different market conditions while building wealth over time.