Interest rates may be near a cyclical peak, some market watchers say. Illustration: Miriam MartincicFor anyone living on a fixed income, the current ability to earn 5% on high-yielding bank and money-market accounts is a welcome change from the recent past, when many accounts paid near zero percent in interest. Still, people relying on such investments can’t stand pat. Retirees in particular need to plan for the next time short-term rates and the cash they generate decline, professionals say. That means creating diversified portfolios that, besides generating income, can produce the appreciation necessary to keep up with the rising costs of living over a long time.

---