2. Stagger your bonds’ maturity dates<\/p>\n
If you also (or instead) hold bonds to generate income, be sure their underlying maturity dates are spaced out<\/a> over the course of the next several years, if not the next couple of decades. This will mean a different effective interest rate for all of them, but more importantly, this also minimizes the risk of locking in an unusually low rate on a big chunk of money you receive when one of these bonds matures.<\/p>\n 3. Own Treasury inflation-protected securities (TIPS)<\/p>\n Separately but simultaneously, if inflation is going to be a contributing factor to any recession, Treasury inflation-protected securities<\/a> (TIPS) are an effective way to ensure your interest payments never lose ground to inflation.<\/p>\n Image source: Getty Images.<\/p>\n Simply put, TIPS are bonds issued by the federal government with a varying interest payment that reflects changes in the Bureau of Labor Statistics’ Consumer Price Index (CPI). Their interest payments are generally lower than what you’d get with corporate bonds. If you’re willing and able to accept lower interest payments in exchange for less risk, though, this option may well be worth it — particularly during a recession.<\/p>\n That said, an exchange-traded fund<\/a> (ETF) like the iShares TIPS Bond ETF (TIP<\/a> 0.08%) or the Vanguard Short-Term Inflation-Protected Securities ETF (VTIP<\/a> +0.08%) might be an easier option than figuring out which actual Treasury inflation-protected securities to buy.<\/p>\n 4. Hold plenty of cash (but make the most of it)<\/p>\n If there’s a good chance that economic turbulence could impact your portfolio’s ability to generate adequate retirement income, make a point of carving out a sizable chunk of cash now to meet your foreseeable cash needs. The one thing you don’t want to do is be forced into selling something while the market is down.<\/p>\n Just be smart about how you handle this cash. Most banks’ savings accounts and checking accounts aren’t yielding much. Many online banks and most brokerage firms, however, are currently offering 4%<\/a> on cash-like money market accounts.<\/p>\n 5. Annuitize some of your retirement savings<\/p>\n![\"An](\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2026\/05\/1778544436_791_.jpeg\"\/)
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