The problem of investing in a zero-rate world

"This chart, courtesy of Robert Shiller of Yale, shows the change in 10-year U.S. Treasury yields from 15 percent in 1981 to the current 1.89 percent in 2015. To put these numbers in perspective, in 1981, an investor with $1 million could purchase conservative 10-year U.S. Treasury bonds and earn a very productive $150,000 per year. Today, that same $1 million in 10-year U.S. Treasurys earns $18,900."

Sections in quotes Reposted From Michael Elfers

"For the past several decades, the traditional 60 percent stock, 40 percent bond allocation has dominated the investment industry. But since 2000, interest rates have declined to historic lows at or near zero percent. While this has given bond returns an historic tailwind, it begs the question: Have bonds become an unproductive portfolio-allocation tool?"

"In many cases, short to intermediate, high-quality bond yields have fallen below the level of the fees charged by investment advisors, creating negative returns for clients."

"Warren Buffett says it best: 'Bonds should come with a warning label.'"

"With interest rates nearing zero, investors and advisors need new tools that will allow them to earn productive returns while protecting client capital."

The over 1 trillion dollar student debt marketplace is well positioned to provide investors with  a new tool to provide decent safe yields.