No. of Recommendations: 0
I'm not looking for no market risk. I could achieve "no market risk" by just paying off the mortgage now. A 5% to 7% return requires some risk (obviously).

A straight equity investment (such as a no load index fund) would theoretically yield a 10% return over the long run, but the variabily of such an investment is too high for what I have in mind and a 5 year time frame is too short to reasonably target a 10% return overall. A common stock equity investment would however defer taxes until I cashed out the investment (assuming capital appreciation and no dividends) and it would generate a long term taxable gain.

A 5% to 7% return on an "equity" investment would be a relatively "safe" return by market standards (half the long term average return on US stocks). I'm just looking for ideas here. Preferred stock? Asset backed securities? Hedged equity investments?

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.