Quote:
Originally Posted by rsmurano
If you want safety with high yield, get into money market funds. If you have $1M or more to invest, you can get 5.37% yield, less than a million, you can get 5.1%, without losing any of your base. Stay in as long as you want.
I used to get in so-called safety investments: bonds and balanced funds and I stopped doing this 20 years ago. They just don’t make enough return and they can still lose 20-30% during downturns, maybe a little bit better than stocks/funds.
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Right now 40% of my portfolio is in T-bills at Schwab and VMRXX at Vanguard.
As most of my securities are in taxable accounts I rarely trade due to friction (taxes and trading spreads). I tend to be a buy and hold investor. At this point in my life I want dividend income to replace the rental income from real estate properties I recently needed to sell as all the partners were aging out and/or dying.
Three quarters of my net worth remains in real estate investments, most of which I have held since the 1970s. It is essentially depreciated out and my basis is low. I ain't selling any more of it! Sales in 2022 and 2023 of commercial real estate properties in which I was a partner have pushed me into securities. I never spent much time on or even paid much attention to the stock market although I was lucky enough to buy a few few shares of BRK at a little over $3,000/share back in the 1980s. Happily, I hung onto it.