A. What you described is a dilemma faced by every investor, generally it implies if you are not happy with the meager return you get from savings accounts or CDs and want higher returns, you have to be willing to take more risks. We will introduce 4 strategies for you to consider.
Strategy 1. Invest in Equity-income funds
Usually equity investors seek capital appreciation (buy low and sell high), but equity-income funds are like a hybrid between equities and bonds, they provide regular income streams through dividends so investors can get regular incomes.
If you pursue this strategy, pay special attention to funds that invest in stocks of high-quality companies with a history of increasing their dividend payments. This US News review has a list of best income funds.
An equity that pays dividends in the past doesn't mean it will keep paying dividends forever. When it stops paying dividends, the risk is huge. That's the difference between a bond and a dividend-paying stock and therefore the reason to invest in a diversified dividing paying stocks.
In our next strategy, we will discuss high-yield municipal bonds.