Where to find higher yields

P2P lending

Peer-to-peer lending is where you loan money to individuals through websites such as Prosper.com or LendingClub.com.

Peter Renton, the CEO and founder of Lend Academy, which advises investors on P2P lending, says annual returns range from 6% to 18%.

Loans range from one to five years, and the riskier the borrower, the higher the interest rate on the loan.

Renton says you can customize a portfolio of loans based on your risk tolerance and minimize your risk by spreading your money across multiple loans with a $25 minimum investment.

By investing $1,000 in 40 loans, you won't lose everything if a couple go bad. Those typical returns of 6% to 18% include losses from defaults.

Renton says P2P investing is a high-yield product with low volatility that is not closely correlated with other asset classes.

"These platforms now have a proven track record for many years in providing excellent returns to investors," Renton says.