Fixed income

Investing for income with an active approach

Retirement plan participants can use fixed-income (bond) funds to pursue monthly income, preserve capital, or reduce risk.

Putnam income funds have a philosophy of risk diversification.

We invest across four areas of fixed-income risk — interest rates, credit, prepayment, and liquidity — for better risk-adjusted returns.

We invest actively, using fundamental research to allocate risks and construct each portfolio to pursue client objectives.

We have flexibility to invest in income securities and sectors beyond benchmark indexes that place limits on other investors.

See Putnam fixed income funds.

Learn about retirement income distributions

This infographic explains why bond funds can help generate income in retirement and help savings last.

Help savings last (PDF)

This chart illustrates how long a hypothetical portfolio of 60% stocks, 30% bonds, and 10% cash, regardless of account balance, would have lasted on average given various withdrawal rates. All withdrawals represent the percentage of the original account balance that is taken out each year. Withdrawals were increased by historical inflation.

Fixed income savings

These illustrations are based on a rolling historical time period analysis and do not account for the effect of taxes, nor do they represent the performance of any Putnam fund or product, which will fluctuate. These illustrations use the historical returns from 1926 to 2018 of stocks (as represented by an S&P 500 composite), bonds (as represented by a 20-year long-term government bond (50%) and a 20-year corporate bond (50%)), and cash (U.S. 30-day T-bills) to determine how long a portfolio is likely to last given various withdrawal rates. A one-year rolling average is used to calculate performance of the 20-year bonds. Past performance is not a guarantee of future results. The S&P 500 Index is an unmanaged index of common stock performance. You cannot invest directly in an index.