5 Types of Income Investments That Should Shine in 2014

If you’re set for life or will need your money soon, go ahead and bank your cash. Otherwise, get in there and invest.

If you want to know why many adventurous income funds performed so well the past year despite so much angst about the direction of interest rates, take a gander at page 24 of the Third Avenue Focused Credit Fund’s latest shareholder report: “Debt instruments that had been traditionally sold as ‘safe’ have simply paid too little to contend with rising interest rates or even modest inflation. Those instruments that have traditionally been considered as ‘risky’ are actually better positioned to perform well under current economic conditions.” Third Avenue Focused Credit, which buys low-rated corporate bonds, returned 15% in the first 11 months of 2013.

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Jeffrey R. Kosnett
Senior Editor, Kiplinger's Personal Finance
Kosnett is the editor of Kiplinger's Investing for Income and writes the "Cash in Hand" column for Kiplinger's Personal Finance. He is an income-investing expert who covers bonds, real estate investment trusts, oil and gas income deals, dividend stocks and anything else that pays interest and dividends. He joined Kiplinger in 1981 after six years in newspapers, including the Baltimore Sun. He is a 1976 journalism graduate from the Medill School at Northwestern University and completed an executive program at the Carnegie-Mellon University business school in 1978.