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For investors, coupon clipping has a much different connotation than saving 30 cents on a can of peas.

The technique has been the cornerstone of bond investing during retirement for decades. But lately, simply living off your dividends or bond interest has become pretty hard to do. Thanks to the Fed, you simply can’t buy a risk-free Treasury bond and collect the interest to cover your expenses.

And according to custodial bank and asset manager State Street, we may never be able to coupon clip again.

This is a major problem for retirees. But it doesn’t have to be the end of the world. There are ways to circumvent the issue without taking on too much risk.

Click here to read about credit cycle.

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