Investing to Wealth

With stock prices near decade lows and fear at generational highs, many market participants are looking for harbors in the storm -- and turning their eye from high risk growth stock opportunities to what are generally more conservative income ideas.

For those looking to broaden their holdings to include yield-generated income, we turned to a dozen leading newsletter advisors who in turn offered a wide variety of income-oriented ETF and fund favorites.

Yes, fixed income holdings have their own risks. But in general, a diversified portfolio -- balanced between stocks and bonds -- has proven a more defensive posture. In addition, the selections in this report are funds and ETFs; as such the investments themselves are diversified among many holdings.

Muni bonds -- which offer tax-free income -- top the list for two advisors. Income specialist Carla Pasternak looks at a pair of favorite muni bond closed-end funds offering yields of 7.9% and 11.1%

For more, read: High returns from tax-free muni bond funds

Brandon Clay also like the muni area, but choose a newly-launched ETF that specializes in Pre-Refunded Municipals as a risk averse holding.

For more, read: New ETF buys pre-refunded muni bonds

In addition to a favorite fund in the muni sector, Keith Fitz-Gerald offers favorite income funds for Treasury-inflation propected securities (TIPs) as well as high yield corporate bonds.

For more, read: TIPs, munis & corporates: ETFs for income

Steven Leeb also offers a trio of ideas, selecting a favorite total return fund, a top pick among tax-exempt bonds, and a favorite for those seeking exposure to high quality corporates.

For more, read: Income trio: Favorite funds for yield

Exchanged-traded fund specialist Carl Delfeld recommends a currency-based vehicle that invests in the Australian Dollars and offers a yield above 7%.

For more, read: Aussie dollars: High yields from down under

An area that one may not expect income is the gold and natural resource sector. But growth & income expert Bryan Perry offers a closed-end gold & resources fund from the Gabelli fund family that provides the opportunity for continued high yields.

For more, read: Golden returns: Gabelli Global (GGN)

Master limited partnerships offer both income potential and tax advantages. Energy sector expert Elliott Gue offers his two favorite MLPs as well as a closed-end fund that invests across this sector.

For more, read: Pipeline profits: High yields from MLPs

Eric Roseman sees opportunity for more speculative income investors in mortgage-backed securities and offers a fund from BlackRock offering potential double-digit returns.

For more, read: Blackrock Income (BKT): Mortgage-backed income

Mark Salzinger reveals his favorite picks from his model portfolios, looking to a corporate bond fund for those building long-term wealth and a dividend-focused fund for pre-retirement investing.

For more, read: Best income buys: Wealth building and pre-retirement

For the utmost in safety, Martin Weiss suggests that conservative investors stay with only the shortest term Treasury securities and offers his best buys among Treasury-only money funds.

For more, read: Stay short-term for safety in Treasuries

Finally, two of our advisors are speculative on rising interest rates and offer fund choices that move in the opposite direction from long-term rates. Nick Vardy looks at an inverse government bond fund to play this expected trend.

For more, read: Government bonds: An 'inverse' strategy

Meanwhile, while Jack Adamo offera a leveraged ETF that is also betting on higher rates down the road.

For more, read: ETF banks on a bubble in Treasuries

As always, the recommendations from newsletter advisors should be considered a starting place for you to do your own research. Only buy investment vehicles that match your own investment profile, time horizon and risk parameters.

And importantly -- particularly so with income vehicles -- make sure you fully understand the tax implications of these investments.

Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.

Filed under: Forecasts, Newsletters, Mutual funds, ETF Investing, Commodities, Oil, Stocks to Buy, Housing, Recession, Financial Crisis

Today's best income ideas: A dozen experts look for yield originally appeared on BloggingStocks on Fri, 27 Feb 2009 16:35:00 EST. Please see our terms for use of feeds.

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