An investment professional was stimulated by yesterday's post Chasing Value: Granny Said, 'It Has Turned into One Big Casino'. She suggested an alternative investment for granny that is simpler and perhaps advantageous for older investors seeking fixed income. Such investors should consider the iShares S&P U.S. Preferred Stock Index (PFF) exchange traded fund for its high yield and simplicity.

While this investment vehicle would not work for my particular "granny" due to her unique circumstances, it might be ideal for many others.

"We believe it is prudent to lock in some profits, and focus on developing an income stream in the event that we get either a major correction or double-dip recession," says Glenn Rogers.

The contributing editor to The Internet Wealth Builder suggests, "It seems to me to that the most promising areas worth considering are high-yield bond funds and international real estate funds, preferably with some underlying income." Here, the reviews four income ideas.

"I like high-yield bond funds, even though there is concern that interest rates will rise in 2010.

"Preferred stock has been much in the news over the past 18 months, primarily as the favorite way for cash-strapped banks to raise new capital," explains Mark Salzinger.

In The Investor's ETF Report, he says, "These unusual securities are popular because they offer high yields and have a higher position in corporate credit structure than common stock." Here, he offers a pair of favored ETFs that invest in preferred shares.

"We caution that preferred stocks also have significant drawbacks that dampen their appeal. Apreferred stock is really more like a fixed-income instrument than an equity security.

"The government will likely do whatever it takes to breathe life back into the banking sector," says Bryan Perry. In The 25% Cash Machine the growth & income specialist eyes iShares S&P US Preferred Stock (NYSE: PFF).

"One of the hottest themes of 2009 for big-cap money managers is to take a stake in high-yielding preferred stocks in companies backed by the Troubled Asset Relief Program.

"Preferred stocks were smoked with the credit markets in the latter part of 2008, to a point where the definition of 'capitulation' was rewritten for all time. But investors are still attracted to preferreds because yields are near double digits, and famed investors like Warren Buffett are also investing their money there.