Take a risk to earn more interest from retirement savings

Here are some bonds to consider if you're searching for more yield: CONSIDER ‘HIGHER-QUALITY’ JUNK This strategy might sound like an oxymoron, but seeking higher yields in companies

whose bonds are rated “junk” — ones that rating agencies Standard & Poor's and Fitch Ratings put at BB+ or lower — may be worth the higher risk, King says. "There is definitely

potential to buy ‘higher-quality’ junk bonds,” he says. Some of his fund's current holdings, which King considers good examples, include rental car company Hertz, frozen french fry

maker Lamb Weston, and managed health care operator Centene. "These are all BB-rated bonds yielding [between] 4 percent and 5 percent,” more than twice the yield on 10-year Treasuries,

King says. “Does anyone think Hertz is going out of business?" "It is not very probable” that these companies will default before the bonds his fund owns mature between 2024 and

2027, according to holdings cited on the CFIAX website. DIVERSIFY WITH MUNICIPAL BONDS For retirees in higher tax brackets, owning a broad mix of tax-free municipal (muni) bonds is a way to

earn a bigger after-tax return than they would get owning a 10-year Treasury, says Alex Vicencio, a chartered financial analyst and private wealth adviser for Wells Fargo Advisors in Miami.

Municipalities issue these types of bonds to pay for projects such as repairing roads and remodeling schools. Retirees in the 35 percent tax bracket who are earning 2.5 percent tax-free

income on their muni bond investments would need to receive 3.85 percent in taxable returns to earn a comparable amount after taxes, Vicencio estimates. ANALYZE THESE AREAS FIRST Before

making an investment decision, the federal Securities and Exchange Commission has this advice: 1. Look at your entire financial situation. 2. Maintain an emergency fund. 3. Pay off credit

card debt. 4. Evaluate your comfort zone. 5. Mix types of investments. 6. Rebalance your portfolio periodically. 7. Avoid situations that can lead to fraud. But putting all your money into

your hometown's muni bond is probably not wise. You won't get the protection that investing in a large number of muni bonds issued in different states and from multiple

municipalities gives, he says. Vicencio also recommends creating a “ladder” of maturities. That means having muni bonds coming due every year for the next 15 to 20 years. That way, if the

economy enters a higher-yield environment, you'll have the “opportunity to reinvest the cash at higher yields,” he says. And if rates fall, your overall return is likely to remain

fairly stable because you'll likely have money invested in other muni bonds at higher interest rates, which will offset the income loss from reinvesting fresh dollars in bonds with

lower yields. DO IT YOURSELF WITH TOTAL BOND FUNDS If you're a do-it-yourself investor, you can boost your income by choosing a total bond fund that invests in virtually every type of

bond imaginable, ranging from Treasuries to high-rated corporate bonds to junk. These funds own a broad mix of bonds with different maturities, risk profiles and yields. While the price of

the individual bonds can go up or down, sending yields in the opposite direction, owning so many different types of bonds will smooth out the volatility. You can select from actively managed

funds that portfolio managers run, or you can opt for a lower-cost total bond index fund or total bond exchange-traded fund, better known as an ETF, which will give you broad bond market

exposure.