Business · Markets · 1 day ago
Financial expert outlines ways to seek returns above 4% with moderate risk
There are ways to aim for returns above 4% without putting all your money in the stock market.
Options include dividend-paying stocks, bonds held to maturity and funds that mix stocks and bonds.
Each can lose value or carry other risks, so the right choice depends partly on when you will need the money.
Keeping an emergency fund can also help prevent unexpected costs from turning into more debt.
Financial expert Douglas Boneparth outlined several options for people seeking returns above 4% without taking the highest level of risk.
He said dividend-paying stocks or blue-chip company ETFs may yield 3% to 5%-plus annually, but their share prices can fall.
Boneparth suggested bond ladders made up of individual Treasuries or investment-grade corporate bonds, which have known maturity dates.
He said balanced funds with typical stock-and-bond allocations of 60/40 or 70/30 have historically returned 5% to 7% annually over long periods, with lower volatility than all-stock investments.
The article also advises keeping at least three months of living expenses in a high-yield savings account and describes debt-management plans offered through the National Foundation for Credit Counseling.
- Who
- Douglas Boneparth, cofounder of Bone Fide Wealth, answered a reader’s savings question.
- What
- He discussed investment options that may offer returns above 4% with less risk than investing entirely in stocks.
- When
- October 10, 2026
- Where
- CNN’s Savings Challenge newsletter
- Why
- A reader from Arizona asked how to earn more than 4% without taking very high risk.
This story does not have two clearly opposing sides.
You don’t have to choose between earning next to nothing in a savings account or riding the volatility rollercoaster in the stock market.
The longer you can leave money alone without needing it, the more of it you can comfortably absorb and the higher your potential return.
Instead of finishing a debt payoff plan with zero cash on hand, clients walk away completely debt-free and with a dedicated emergency fund to prevent them from falling back into credit card debt,
This story does not have a timeline yet.
- Dividend stocks and blue-chip ETFs
- May yield 3% to 5%-plus annually, with market risk.
- Balanced funds
- Typical allocations are 60/40 or 70/30 stocks to bonds; historical long-term annual returns cited were 5% to 7%.
- Emergency savings
- The article recommends setting aside at least three months of living expenses.
- Debt-management plan fees
- A start-up fee averages about $35, and the monthly maintenance fee averages the same amount, according to Bruce McClary.
Sources
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