5: Get into bonds
If you think the Fed is done raising rates, you may want to invest in bond funds. Bond funds can include Treasury bills, corporate bonds, mortgage securities and junk bonds. Generally yields are about 4.5%.
A word of caution...watch out for all the fees.
"Expenses can mean the difference between a winner and a dud," says Scott Berry of Morningstar.com. For low-cost bond investing, you'll want to check out Vanguard. Their total bond market index fund has only about 0.02% in fees, but the 10 year average return is over 6%.
You can't go wrong with Fidelity either, according to Berry. "Costs may be a little higher, but it's top notch management," says Berry.
To check out these bond funds, go to www.vanguard.com or www.fidelity.com.