Fixed income strategies can be slightly complex and are typically done with individuals who are in the later years of their lives beginning to retire soon or are already retired. When individuals are at this stage in their lives and need a fixed income, they need to allocate some (not all) of their funds into an investment in which they can preserve capital with a guarantee of an income stream as the important factor. The first steps I would make in creating my fixed income portfolio is to look at the yields being paid on each investment and the terms with each corresponding rates; also, making sure to note how many basis points are added with the term(s) being extended. From historical figures, I would suggest investing into some type of bonds (government, corporate, and municipal), and also into a lower risk stock. The current rate on corporate bonds are greater than those of the government and municipal ranging from five years at 2.66% to 4.85% and 10 years at 4.14% to 6.05%, the range of these interest rates depend on the amount invested into the bond, this is tier based pricing. (Vanguard, 2011). Whether or not an individual should invest into five or 10 years depends on how they think they will need their income; meaning, if something happens and their funds are locked up for a longer period and cannot access it, they might be out of luck. Or they might take the risk and go for a longer period of investing and hope for a good return with the lack of need for those funds immediately. I would invest into the corporate bonds at five years, and perhaps roll it into another five years after reviewing my portfolio after the first five years. Municipal bonds are currently paying a yield of 1.53% to 1.96% for five years and 2.79% to 3.30% for 10 years, also depending on the dollar amount invested. This too may be a safe option that I would invest into