Message Font: Serif | Sans-Serif
No. of Recommendations: 0
Dear fooldaveonce:

I would echo the advice about checking the company issuing these viaticals--with a very, very fine-toothed comb. The simple fact that they indicate a range of possible returns calls into question the strength of their "guarantee."

There are lots of other ways to get returns in the 10-11% range--with no guarantees, but with reasonable safety. There are REITS, oil/gas/timber royalty trusts (and some other master limited partnerships too--all traded on the major exchanges like stocks), as well as high-yield bonds (not many of which can acccurately be called "junk)." Check them out using a high-yield screen.

I have about 37 percent of my retirement money in these things, and for that reason (and some prudence in choosing equities) I don't have a loss for the past two years...even after taking out about $4000 a month for living expenses. I'm back down to where I started in mid-1998, but no real LOSS (and a lifetimes's worth of tax-loss carryforwards, for what it's worth).

Yrs., posthorn
Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.