Displaying items by tag: income

The Nationwide Strategic Income Fund (NWXHX) has surpassed $1 billion in assets under management, reflecting strong investor demand and consistent outperformance. Since its 2015 inception, the fund has averaged a 6.07% annual return, 2% higher than its peer group, and earned a 5-star Morningstar rating. 

Its flexible, benchmark-agnostic strategy allows the fund to adapt to changing markets, guided by a seasoned management team with over a century of combined experience. The fund invests across fixed income sectors and can serve as a core or complementary bond holding. 

Following Amundi US’s merger with Victory Capital, the fund was renamed in June 2025 but retained its structure, management, and investment approach. As its profile rises, Nationwide emphasizes institutional-level oversight and manager selection to deliver long-term value.

Finsum: Strategic income invests across fixed income sectors and can serve as a core or complementary bond holding.

Annuities, once sidelined as overly complex or narrowly useful, are now experiencing a surge in demand as investors prioritize stability, protection, and predictable income in a volatile economic landscape. This shift is driven by pre-retirees and retirees rethinking traditional equity-focused strategies and seeking solutions that mitigate risks like sequence-of-returns. 

Fixed and fixed indexed annuities, in particular, offer competitive yields, downside protection, and guaranteed income, features especially appealing to mass-affluent households with limited pension coverage. 

The Great Wealth Transfer is also fueling interest, as boomers explore annuities not just for income but for legacy planning as well. Meanwhile, advances in digital tools and platforms have made annuities more transparent, accessible, and easier to incorporate into holistic financial plans. 

Finsum: Even as interest rates fluctuate, annuities are expected to remain a core solution for those seeking long-term financial confidence over short-term market gains.

Married retirees with an age or income gap can significantly reduce their Social Security tax bill in 2025 by delaying benefits and strategically using the new $6,000 Senior Deduction. For example, when the older spouse defers Social Security until age 70, it not only boosts lifetime income but also helps lower the couple’s current combined income, keeping more benefits tax-free. 

Roth IRA conversions during low-income years and Qualified Charitable Distributions (QCDs) after age 70½ are smart ways to cut taxable income without losing access to deductions. The Senior Deduction becomes especially powerful when couples keep their Modified Adjusted Gross Income (MAGI) under $150,000, the cap for eligibility. 

By timing withdrawals from IRAs to coincide with lower earning years and coordinating the younger spouse’s income, couples can avoid tipping into higher Social Security tax brackets. 

Finsum: A well-planned mix of benefit delays, tax-efficient withdrawals, and smart giving can make retirement income go further while keeping taxes in check.

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As expectations for interest rate cuts build, emerging market (EM) debt is drawing increasing attention from investors. Lower U.S. rates typically weaken the dollar, making EM currencies more attractive and boosting returns on dollar-denominated EM bonds. 

This favorable backdrop has already spurred strong demand, with EM bond issuance in Central and Eastern Europe, the Middle East, and Africa reaching $190 billion in the first half of 2025, on pace to break historical records. 

The Vanguard Emerging Markets Government Bond ETF (VWOB) offers investors a low-cost, diversified way to access this space, boasting a 30-day SEC yield of 5.66% and nearly 7% YTD return. As rate cut bets intensify into September, VWOB is positioned to benefit from both income and potential price appreciation. 

Finsum: For investors seeking EM exposure without the complexities of individual bond selection, ETFs offer compelling options

As of June 2025, the Federal Reserve has maintained its key interest rate, creating a rare window for investors to take advantage of elevated yields at the short end of the bond curve. 

With short-term yields currently exceeding those of intermediate maturities, ultrashort bond funds have emerged as an efficient way to earn income without assuming significant duration risk. These funds, which typically hold maturities under one year, offer a balance of liquidity, low volatility, and competitive returns. Among the top active strategies is Pimco’s Short-Term fund, which combines nimble credit allocation with disciplined risk management, avoiding complex securities and leaning on deep market expertise. 

For investors seeking tax-efficient income, Vanguard’s Ultra Short-Term Tax-Exempt fund delivers high-quality municipal bond exposure with an ultrashort duration, making it a smart pick in rising rate environments. 

Finsum: These strategies give investors a way to capture attractive yields while staying agile amid ongoing rate uncertainty.