<p style="text-align: left;">Ahead of <em>MoneySense</em>&#8216;s May 7 <a href="http://www.moneysense.ca/save/investing/moneysense-event-invest-for-success-2016/" >Invest for Success event</a>, editor-in-chief David Thomas asked Tom Bradley, president and co-founder of Steadyhand Investment Funds about the brave new world of fixed-income investing in a time of rock-bottom—or even negative—interest rates. What does this mean for investors?</p>
<p style="text-align: left;"><strong>DT:</strong> For years, investors could get by on fairly simple rules of thumb when it came to figuring out what to do with the fixed-income part in building a smart portfolio. Today it’s a lot less straightforward isn&#8217;t it?</p>
<p style="text-align: left;"><strong>TB:</strong> A decade ago, government bond yields were running at 2-4% above inflation. If an investor couldn’t stomach the ups and downs of the stock market, they could hide in bonds and GICs. Accordingly, the rule-of-thumb for your stock weighting was ‘100 minus your age’ (i.e. at 70 years of age, stocks should make up 30% of your portfolio, with bonds taking the rest).</p>
<p style="text-align: left;">Today, safety is expensive—secure, low-volatility alternatives barely offset inflation. To ensure a sustainable income, retired investors need to own more stocks and higher risk fixed-income vehicles than they used to.</p>
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<p style="text-align: left;"><a href="http://www.moneysense.ca/save/investing/moneysense-event-invest-for-success-2016/" rel="attachment wp-att-154004"><img class="alignleft size-full wp-image-154004" src="http://www.moneysense.ca/wp-content/uploads/2016/04/IFS_FACEBOOK_HEADER.jpg" alt="IFS_FACEBOOK_HEADER" width="401" height="217" srcset="http://www.moneysense.ca/wp-content/uploads/2016/04/IFS_FACEBOOK_HEADER-300x162.jpg 300w, http://www.moneysense.ca/wp-content/uploads/2016/04/IFS_FACEBOOK_HEADER.jpg 401w, http://www.moneysense.ca/wp-content/uploads/2016/04/IFS_FACEBOOK_HEADER-400x217.jpg 400w" sizes="(max-width: 401px) 100vw, 401px" /></a></p>
<p style="text-align: left;">Want to learn more?</p>
<p style="text-align: left;">Hear Tom Bradley and others, including Kurt Reiman, chief investment strategist for BlackRock Canada, and <em>MoneySense</em> columnists Dan Bortolotti and Norm Rothery share more investing tips on <a href="http://www.moneysense.ca/save/investing/moneysense-event-invest-for-success-2016/" >May 7 in Toronto</a>.</p>
<p style="text-align: left;">Tickets to Invest for Success are still available. Agenda and registration details are <a href="http://www.moneysense.ca/save/investing/moneysense-event-invest-for-success-2016/">here</a>.</p>
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<p>The post <a rel="nofollow" href="http://www.moneysense.ca/save/investing/bonds/the-new-rules-of-bond-investing/">The new rules of bond investing</a> appeared first on <a rel="nofollow" href="http://www.moneysense.ca/">MoneySense</a>.</p>
