How to Invest in Fixed Income and Earn Over 1% Monthly

Introduction

In a world of financial uncertainty, many people are turning to fixed income investments for stability and predictable returns. But did you know that it’s possible to earn over 1% per month with the right strategies? In this article, you’ll learn how to make the most of fixed income and build consistent, growing returns over time.

1. Understanding Fixed Income Investments

What is Fixed Income?

Fixed income refers to investments that pay regular interest payments over a specified period. These are typically lower-risk than stocks and provide predictable income.

Common Types of Fixed Income Investments:

Government Bonds (Treasuries)
Corporate Bonds
CDBs (Certificates of Deposit)
LCIs/LCAs (Brazilian fixed income options)
REITs (Real Estate Investment Trusts) with consistent dividend payouts
Fixed Income Funds

🚀 Key Advantage: You know what to expect—making it easier to plan your finances.

2. Why Aim for 1% Monthly?

Breaking It Down

Earning 1% per month equals approximately 12.68% annually when compounded monthly. That’s higher than most savings accounts, and often beats inflation.

Why 1% Is a Solid Benchmark

Outpaces inflation
Builds wealth steadily
Can create passive income for reinvestment or expenses

🚀 Example: Investing R$10,000 at 1% monthly returns R$100/month—R$1,268/year with reinvestment.

3. How to Find Fixed Income That Pays 1%+

High-Yield CDBs and LCIs/LCAs

Offered by digital banks and fintechs
Rates often above 1% monthly, especially for longer-term investments

Private Credit and Debentures

Loans to private companies in exchange for interest
Riskier, but often offer returns above 1%
Look for credit-rated institutions

Real Estate Funds (FIIs/REITs)

Pay monthly dividends
Many offer yields between 0.8% and 1.2% monthly

Inflation-Linked Bonds

Bonds indexed to inflation (IPCA) + fixed rate
Ensures real gain above inflation

🚀 Pro Tip: Use platforms like Tesouro Direto, Rico, or XP to compare options.

4. Key Strategies to Maximize Returns

Laddering Strategy

Divide your investment across different maturities
Ensures liquidity and higher average returns

Reinvest Your Income

Compound your gains by reinvesting interest/dividends monthly

Monitor Rates and Opportunities

Interest rates change—so keep an eye out for new offerings

Diversify Within Fixed Income

Don’t put everything in one product
Mix banks, terms, and types of securities

🚀 Example: Combine REITs, long-term CDBs, and inflation-linked bonds for both income and growth.

5. Risks to Consider

Credit Risk

Risk that the issuer may not pay—always check ratings

Liquidity Risk

Some investments lock your money for months or years

Interest Rate Fluctuations

Long-term fixed rates can lose appeal if market rates rise

🚨 Tip: Understand your goals before locking money long-term.

Conclusion

Investing in fixed income doesn’t have to mean sacrificing returns. With smart choices, diversification, and reinvestment, you can build a portfolio that earns more than 1% monthly while maintaining stability.

💡 Take Action:

Start small, explore high-yield options, and reinvest your earnings. Over time, your income will grow—and so will your financial confidence. 💰📈