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Old 10-15-2013, 08:39 PM
gustavo gustavo is offline
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Quote:
Originally Posted by l2ridehd View Post
A very good company with a good dividend, but again your placing all your eggs in a single basket. Any single company can fail.

For low risk, decent return, buy low cost index funds that cover the entire market. A total stock market fund, a total international fund, and a total bond fund. Use Vanguard, Fidelity or Schwab. The all have low cost funds. A very simple 3 fund portfolio in low cost index funds, balanced to meet your risk tolerance (probably around 40% TS, 15% TI, 45% TB) will provide a low risk approach that will allow you to withdraw 3% each year forever and 4% for 30 years. Re-balance to those percents once a year on your birthday.

If that is to difficult then just put half in each of Vanguard Wellington and Wellesley funds. They have a 50 year track record of steady returns with minimal volatility and low cost. That combination would give you 50% stocks and 50% bonds with just those two funds.
The OP was talking about 5% income. Total Stock, VTI only yields 1.97%. Total Bond, BND is 2.97% and Total International stock, VXUS is 3.17%. Note a high overlap in VTI and VXUS which lowers diversification and increases volatility. Perhaps a fund like Vanguard emerging market ETF (VWO 3.36%) meets the need for international exposure without overlap. However, the yield on this portfolio is much less than the required 5%. The individual stock(s) are better than the insurance company annuities.