Wake up, investors! Cash yields are hot now, but beware the impending fall

The Illusion of Hot Cash Yields

Ah the sweet siren song of cash yields! But beware for the time might soon come when yields on money market funds falter faster than Neo dodging bullets. The Crane 100 Money Fund Index is strutting its stuff now flaunting a 5.13% yield. But remember 'There is a difference between knowing the path and walking the path.'

To Bond or Not to Bond?

Deciding whether to hop onto the bond train requires more than just a red or blue pill moment. Consider interest rate sensitivity credit risk liquidity and duration. After all 'Fate it seems is not without a sense of irony.' Dive into fixed income but beware the dangers that lie ahead.

Tax Man Cometh

Taxes can be trickier than navigating the Matrix. Consider the tax implications of corporate bonds Treasurys and munis. 'You take the blue pill the story ends. You take the red pill you stay in Wonderland and I show you how deep the rabbit hole goes.' Choose wisely for taxes could be the rabbit hole.

Slow and Steady into Fixed Income

Rome wasn't built in a day and neither should your fixed income allocation. Ladder CDs and Treasury bills or dollar cost average into bonds to ease into the world of fixed income. Remember 'The time has come to make a choice.'

Active Management vs. Passive

When it comes to the battle of active management versus passive investing remember Morpheus' wise words: 'You must understand most of these people are not ready to be unplugged.' Opt for active management when diving into bond funds but beware of the siren song of passive investing. Choose wisely investor.