Income investing: To fix or float?

Key Points The RBA cash rate is once again nearing historical lows A portion of fixed interest makes sense but you don’t want to get carried away Other factors may improve the lot of income investors Background At an annualised 1.6% p.a., the most recent consumer price index (CPI) was surprisingly low, prompting the Reserve Bank (RBA) to announce a 50bp (0.5%) cut to the official cash rate. Those reliant on income from term deposits (or similar) are understandably spooked. So, is it time to be rolling into a five-year term deposit or looking at even longer dated fixed...

At an annualised 1.6% p.a., the most recent consumer price index (CPI) was surprisingly low, prompting the Reserve Bank (RBA) to announce a 50bp (0.5%) cut to the official cash rate. Those reliant on income from term deposits (or similar) are understandably spooked.

So, is it time to be rolling into a five-year term deposit or looking at even longer dated fixed income securities?

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