Build a Bond Ladder for More Income

It's a sure bet that interest rates have settled into a higher range and are poised to rise further. But don't let that scare you away from bonds (when rates are rising, bond prices tend to fall, and vice versa) or from certificates of deposit. If anything, the volatile stock market should be nudging you toward more bonds and CDs, not fewer.

Still, the rate outlook demands some caution in your fixed-income strategy.