*Nothing* solves the problem the OP was asking about. investing where the primary goal is income.... does anyone here feel it's possible to achieve a 5.5% yearly return, with a somewhat low risk portfolio? I brought up inflation because that's what kills portfolios that are heavily weighted to "low risk income" investments. The protection from inflation comes from much riskier -- and certainly much higher volatility -- stocks.Neither bond, nor bond funds, nor preferred stocks, nor CDs will solve the inflation issue. CDs and such super-safe investments have trivisl returns, so they are out as a primary vehicle.Ken French (of Fama/Fench) had an interesting video of what he called "Homemade Dividends". http://www.dimensional.com/famafrench/2011/05/homemade-divid...Bond funds are frowned upon by people who appear to be authoritative. Individual bonds seem to be superior, but as far as I can tell come with a huge inherent risk unless you can do a massive amount of DD investigation. And unless you have a very large portfolio, it's hard to be adequately diversified in bonds, since par is typically $1000 and the typical minimum order size is 10 or 20 bonds.For a small investor, referreds, limited to a subset that pass a handful of simple rules, seems to me to avoid most of the negatives of bonds. But I'm always ready & eager to hear about something better.Uh, yeah, I should stop rambling. So.....anybody have more suggestions for the OP?
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra