Fixed income investing is primarily a rules-based investment philosophy that takes all emotion out of the equation.  You simply follow the rules and get a solid return.

Laddering is the most common method used with bonds and today $11 trillion is invested this way in the USA alone.   When analyzing the markets from a long-term perspective, the fixed income portfolios win every time through laddered techniques.  They are certainly not as glamorous as picking stock, however because of their stability and security, almost all large corporate and government pension funds are done through this method.

Fixed income products consist mostly of different types of bonds and buying them is much like buying real estate.  You can’t turn around and sell them immediately after the purchase for a profit, as you can with stocks.  It is a guaranteed product that over time will have a higher value than your purchase price, typically without the loss of your initial investment.  Most people who invest in real estate and want a tangible asset, choose to diversify their investments in institutional bonds because of the similarities.