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Where to Invest Now: High-Yield Bond Funds and more

We ask two top financial planners to give us one idea each for the average investor.

Steve Pomeranz, President, Pomeranz Financial Management
Check out the Thornburg Capital Income Builder Fund (TIBAX). It concentrates on buying quality companies from around the world with an eye toward increasing the dividend through the years. It is conservatively managed by a very good fund family that you can trust.

Bill Losey, Founder, Bill Losey Retirement Solutions
In my clients’ retirement accounts as well as my own, I’ve been investing 5 to 10 percent in the high-yield bond market. I like the SEI High-Yield Bond Fund (SHYAX), which is currently paying just over 13 percent, better than a percentage point a month. You’re getting high yields right now because of the problems in the credit markets, so you’re essentially being compensated for risk.