Welcome to today's live chat! Kiplinger senior editor Jeffrey Kosnett will be taking your questions about income investing for the next hour. Thanks for joining us, Jeff.

Jeff writes our Cash In Hand column for income investors. You'll find a collection of his columns at www.kiplinger.com

Yes. Generally speaking, the principle is the shorter-term the fund's focus. the lower the risk, and then they can spice the fund with a few bonds that offer higher income. So a fund like Baird Aggregate Bond (bagsx) can pay about 4% and still have no more risk than a Treasury fund that's paying around 2%. I also like GNMA funds in general.

Hi, Debbie. Thanks for writing. Inflation-protection funds are only suitable if you think the rate of inflation, and by that it's the CPI, not what YOU think it is in real life , is going to soar. We don't think so. So 75% of your money there is way too much because you won't make any income or return to speak of. Spread the money around all segments of the bond market, such as in a mix of intermediate-term corporates, mortgages and Treasuries. And don't forget municipal bonds. They're safer than most people think.

Here is an updated link to our March article about bond funds: www.kiplinger.com

Hi, Hmich, thanks for writing. As long as your bonds are general obligations or secured by essential services such as roads, hospitals and education, you're fine. The risky municipals are generally involved with land developments or nursing homes and assisted living. Those, you ought to avoid at any time.

We always get a lot of questions about annuities. They're not easy to understand. You can learn a lot from our Understanding Annuities special report at www.kiplinger.com

Hi, Ramseth. Thanks for writing. I've generally been a big REIT fan and remain one beacuse the long-term record is spectacular. That said, there are many kinds of REITs and so I'd need to know if you want maximum dividend income now, growth and income, or diversification. REITs can and do get you all of those.

Ramseth, here is Jeff's recent column on 5 REITs to Buy Now -- www.kiplinger.com

Thanks for the clarification, Jeff.

I would look at property classes that can appreciate in an economic recovery, such as industrial land, warehouses, and rental housing. Office buildings are still lagging in much of the country. There are REITs like SL Green and Boston Properties that own offices only in New York and Washington and places like Princeton, NJ that are prosperous, and that makes more sense than an office REIT with a national focus. In any event, your goal should be 4% or 5% yield and an equal rise in the shares. More than that would be a bonus.

Hi, Jane, and this is an excellent question. First, "fee-based" means fee and commission, not fee-only. 1.5% if actually not outrageous if you have a small amount (in this crowd, that's anything under $250K or $500K). You might see what Fidelity, Schwab and Vanguard have to offer you, but that's not going to get you as much personal attention as a direct engagement with a CFP. And it may be that the adviser will protect you from losses, which means that 1.5% could well be worth it.

Hi, Mark. Simply, yes, and there was no chaos to speak of.

Jane, if you can manage your money yourself fairly well and you don't need any other services or guidance from the advisor or planner, the answer is yes, it's another layer. But millions of people do not want to be bothered on a daily basis and would feel more confident outsourcing the decision-making. And, just as with any other professional service, investment managers don't work for nothing. I wouldn't let fees and costs drive your entire decision here, provided you would be hiring a firm that lays out its entire compensation structure and disclose everything that could possibly run up your tab. BrokerCheck at www.sec.gov gives you access to what registered investment advisers charge and how, and sometimes they offer various arrangements for different clients.

Hi, Bara, that's the question for the ages. The best advice I can give is to spread it around amongst all kinds of investments, from bonds to dividend-paying stocks to real estate or oil and gas funds. Just make sure everything is liquid (you can get the money out when you need it) and avoid paying excessive fees and taxes. Bonds and an annuity will give you a base of income and then you can take a few moderate risks on top of that.

Bara, we maintain a collection of model portfolios for investors to consider, at www.kiplinger.com In particular, there's an ETF Portfolio for Maximum Income that may suit you -- www.kiplinger.com

Touching on one final topic from our March article, Jeff what's your opinion on junk bonds? Are they too risky for the average investor?

No, they're fairly sound at this time. Generally, though, they should be a small slice of a broad bond strategy. But I'd be OK with 10% or 15% of the portfolio there this year, subject to reconsideration in six months. Most of the good mutual fund companies have very well-run junk funds and I'd go there instead of with the ETF called JNK, which is for index-fund fans.

Paul and others, you may want to check out Jeff's article on 8 Dividend-Growth Stock Picks, at www.kiplinger.com

Paul, so am I!

And thanks to all of you who submitted questions and/or learned from Jeff's advice. Join us again next week for a live tax Q&A with Kiplinger Editorial Director and Tax Expert, Kevin McCormally. Thursday, 3/1 1:30pm-2:30pm ET.