These bond strategies can help you get a safe 5% return on your cash

Rising U.S. Treasury yields are drawing renewed attention to fixed income, particularly from investors seeking dependable retirement income. Financial planners report growing client interest in bonds as yields climb, since higher yields mean investors can lock in more attractive interest payments than they could when rates were lower.

Several strategies can help investors pursue roughly 5% returns on cash-like holdings. These include short-term Treasury bills and notes, which carry the backing of the U.S. government; certificates of deposit, which offer fixed rates within federal insurance limits; and bond ladders, which stagger maturities so cash becomes available at regular intervals. Each approach carries different trade-offs in liquidity, duration and credit risk.

The key consideration is what happens after purchase. If rates continue rising, newly issued bonds may pay more than existing ones, while selling a bond before maturity can mean taking a loss if its price has fallen. Inflation also erodes real returns over time. Investors weighing these options may want to match maturities to when they actually need the money, rather than chasing the highest headline yield.