Inflation

[retiredguy123]

The inflation rate is currently 5.39 percent. But, my money market fund, where I have 30 percent of my portfolio, is yielding 0.01 percent. So, I just moved 10 percent of it into my junk bond fund, which is only yielding 3 percent. My short term and intermediate term bond funds are yielding 0.6 and 1.5 percent. My only investment that has any chance to exceed inflation is my S&P stock index fund. I feel like the Federal Reserve is stealing money from me by keeping interest rates artificially low.

[dewilson58]

SO

Not a response.

My fav.

Current over 4%, I have basis earning over 10%.

:popcorn:

[DylanTodd]

The inflation rate is currently 5.39 percent. But, my money market fund, where I have 30 percent of my portfolio, is yielding 0.01 percent. So, I just moved 10 percent of it into my junk bond fund, which is only yielding 3 percent. My short term and intermediate term bond funds are yielding 0.6 and 1.5 percent. My only investment that has any chance to exceed inflation is my S&P stock index fund. I feel like the Federal Reserve is stealing money from me by keeping interest rates artificially low.

hmmm...sounds like you need crypto currency. If you want to hear more about the recently formed Villages crypto currency club email me at dtodd@earls.ca

[Chi-Town]

Nuveen Preferred & Income Opportunities Fund. JPC Over 6%.

[Bay Kid]

TIPS bonds?

[Stu from NYC]

Conservative mutual fund like a Value fund or Dividend Yield fund might work for you.

[davem4616]

Keeping up with inflation is a tough one for those of us that have reached that point in life where we're enjoying the wealth that we've accumulated

there are some select 'widow and orphan' stocks that are paying north of 6- 7%....that might be an option for you to consider....check out AT&T

[Caymus]

Keeping up with inflation is a tough one for those of us that have reached that point in life where we're enjoying the wealth that we've accumulated

there are some select 'widow and orphan' stocks that are paying north of 6- 7%....that might be an option for you to consider....check out AT&T

Just a reminder, AT&T will be cutting the dividend by about 50% when they spin off the media business.

[retiredguy123]

I already have 35 percent in stocks. It's the other 65 percent that I think I should at least be able to at least keep up with inflation. I don't want to increase my stock percentage.

[dewilson58]

I already have 35 percent in stocks. It's the other 65 percent that I think I should at least be able to at least keep up with inflation. I don't want to increase my stock percentage.

SO
+50 years of dividend history.
Never missed.
Always increased.
Regulated monopoly industry "guaranteed profits" by regulators.
I include in my Bond %'age, not my stock portfolio.
:ho:

[Stu from NYC]

I already have 35 percent in stocks. It's the other 65 percent that I think I should at least be able to at least keep up with inflation. I don't want to increase my stock percentage.

When you pay taxes on the interest you earn do not see how any sort of safe debt instrument will allow you to keep up with inflation

[retiredguy123]

When you pay taxes on the interest you earn do not see how any sort of safe debt instrument will allow you to keep up with inflation
I agree, but, if the Federal Reserve would allow the market to control interest rates, you would at least have a chance. A money market account that pays 0.01 percent is absurd.

[retiredguy123]

SO
+50 years of dividend history.
Never missed.
Always increased.
Regulated monopoly industry "guaranteed profits" by regulators.
I include in my Bond %'age, not my stock portfolio.
:ho:
It looks good. I may consider it, even though I have never bought an individual stock.

[Doctor Who]

I bonds for 11/1/21 to 5/1/22......expected return over 7%.

[JGVillages]

One example. Duke Energy. 10 year average stock return=9.87% excluding dividends. Last 10 years dividend has hovered around +&- 4% and is currently at 3.83%.

[Stu from NYC]

Riskier to buy one stock than a basket of them. That is why Mutual Funds appeal to me.

[dewilson58]

Riskier to buy one stock than a basket of them. That is why Mutual Funds appeal to me.

Agree on the surface it might be risker, but an electric utility is "more or less" a bond. Maybe there is one out there, but an electric utility MF might be interesting to look at.

[Stu from NYC]

Agree on the surface it might be risker, but an electric utility is "more or less" a bond. Maybe there is one out there, but an electric utility MF might be interesting to look at.

Can be but an electric utility that has nuclear power plant and it blows up might not be able to continue a dividend.

[dewilson58]

Can be but an electric utility that has nuclear power plant and it blows up might not be able to continue a dividend.

:1rotfl::1rotfl::1rotfl:

[mike1946]

I also hold AT&T - did not know about any upcoming dividend cut - however if they do spin off their media business that will generate a huge chunk of cash which will either get distributed to the shareholders or re-invested in another business ...so not too worried (they also pay dividends quarterly which is good)
I also hold AGNC which inves in Fannie Mae and Fanny Mac mortgage backed securities and other debt instruments - they are currently paying a monthly dividend of 12 cents per share $1.44 pa. on a share price of around $16 - I bought some time ago at just over $14 so I'm doing very well ...they are a REIT so subject to strict SEC rules regarding payouts.

[Duane McCartney]

I will be giving a (non-sale) presentation of a secured real estate investment that earns an investor 6.5%. The presentation is on Nov 9th at 1:00 PM at Laurel Manor if interested.

[Blackbird45]

One example. Duke Energy. 10 year average stock return=9.87% excluding dividends. Last 10 years dividend has hovered around +&- 4% and is currently at 3.83%.

I agree Energy stocks are a safe bet if you want to invest on your own. Southern Co pays out about 4.5% in dividend and electricity seem to be the way to the future.

[La lamy]

One example. Duke Energy. 10 year average stock return=9.87% excluding dividends. Last 10 years dividend has hovered around +&- 4% and is currently at 3.83%.

I only have dividend stocks which is what I count on. I let the ebb and flow of stock prices not worry me (unless a particular company is obviously on a major downward spiral). I've been concerned that my oil stock may be obsolete sooner than later, so it may be time to go Duke instead. Thanks for the tip.

[RMHisle]

100 years ago a Twenty Dollar bill and a Twenty Dollar gold piece were interchangeable. Either one would buy a new suit, new shoes and a night on the town. The Twenty Dollar gold piece will still do that.

[dewilson58]

One example. Duke Energy. 10 year average stock return=9.87% excluding dividends. Last 10 years dividend has hovered around +&- 4% and is currently at 3.83%.

BE CAREFUL on specific return period presentations.

This return is coming out of an stock market dip.

If you look at 20 years: Duke up 3.5%. Southern Company up over 100%.

Duke is ok, but know what you are buying.

:ho:

[sccaracer46]

QYLD is an ETF that generates 10-12% dividends paid monthly using a covered call strategy with the Global X NASDAQ 100. It has consistently paid these high dividend since inception eight years ago. Net asset value will vary depending on the performance of the stocks in the NASDAQ 100 (QQQ).

[MandoMan]

The inflation rate is currently 5.39 percent. But, my money market fund, where I have 30 percent of my portfolio, is yielding 0.01 percent. So, I just moved 10 percent of it into my junk bond fund, which is only yielding 3 percent. My short term and intermediate term bond funds are yielding 0.6 and 1.5 percent. My only investment that has any chance to exceed inflation is my S&P stock index fund. I feel like the Federal Reserve is stealing money from me by keeping interest rates artificially low.

I hope you wrote this as a joke. It’s a serious problem, because plenty of advisers are suggesting that to keep your money safe, put a big chunk in the money market and a big chunk in bonds. I like the T. Rowe Price New Horizons Fund. I’ve averaged over 15% a year over the past five years. After two years, if the market dropped a breathtaking 30% and stayed there, I’d be where your money market funds would still be. And if it dropped 30% tomorrow and stayed there, I’d still have 60% more than I had in 2016 and almost 60% more than your money market account would have.

[ProfessorDave]

SO
+50 years of dividend history.
Never missed.
Always increased.
Regulated monopoly industry "guaranteed profits" by regulators.
I include in my Bond %'age, not my stock portfolio.
:ho:

I like funds - to diversify risks.
These are among the highest paying funds that seek out high dividend paying equities.


SDIV

Global X SuperDividend ETF

8.56%



DVYE

iShares Emerging Markets Dividend ETF

8.21%



SDEM

Global X MSCI SuperDividend Emerging Markets ETF

7.65%


DIV

Global X SuperDividend U.S. ETF

7.38%


EFAS

Global X MSCI SuperDividend EAFE ETF

6.25%



DEM

WisdomTree Emerging Markets High Dividend Fund

5.63%



FGD

First Trust Dow Jones Global Select Dividend Index Fund

5.60%

[retiredguy123]

I hope you wrote this as a joke. It’s a serious problem, because plenty of advisers are suggesting that to keep your money safe, put a big chunk in the money market and a big chunk in bonds. I like the T. Rowe Price New Horizons Fund. I’ve averaged over 15% a year over the past five years. After two years, if the market dropped a breathtaking 30% and stayed there, I’d be where your money market funds would still be. And if it dropped 30% tomorrow and stayed there, I’d still have 60% more than I had in 2016 and almost 60% more than your money market account would have.
Not a joke. But, yes, if I had all of my money invested in a small company growth stock fund like the one you mentioned, I would have made more money over the years. Actually, the New Horizons fund has a 10-year average annual total return of about 23 percent, compared to 17 percent for the S&P 500 index. But, it is not an apples to apples comparison to compare a high risk, 100 percent growth stock portfolio to a conservative, balanced portfolio of stocks, bonds, and cash. I would not feel comfortable with all of my assets invested in any type of stocks. My point is that the cash and bond markets are being skewed by the Federal Reserve by not allowing interest rates to rise and fall based on market conditions like inflation.

[Chi-Town]

Jpc 6+%

[Stu from NYC]

Not a joke. But, yes, if I had all of my money invested in a small company growth stock fund like the one you mentioned, I would have made more money over the years. Actually, the New Horizons fund has a 10-year average annual total return of about 23 percent, compared to 17 percent for the S&P 500 index. But, it is not an apples to apples comparison to compare a high risk, 100 percent growth stock portfolio to a conservative, balanced portfolio of stocks, bonds, and cash. I would not feel comfortable with all of my assets invested in any type of stocks. My point is that the cash and bond markets are being skewed by the Federal Reserve by not allowing interest rates to rise and fall based on market conditions like inflation.

Very true. The problem is we are all living longer and IMHO in order not to outlive your money needed a higher percentage invested in stocks or mutual funds to do so.

[charlieo1126@gmail.com]

I don’t pretend to know much more then the average guy does about the market , which means not much, but I have a mix of Vanguard funds for 20 years that cover everything , they have been slightly adjusted as I got older but I’m still having dollar cost averaging automatically taken every month , hardly bother to look at there progress during year because I’m not pulling out

[rsmurano]

Why bonds? I know about the magical so called formula on % of bonds related to stock holdings based on age. I ignore that.
I implemented the bucket strategy: 1 bucket with enough cash to live on for a couple years that gets replenished with dividends, and 1 bucket of diversified index funds that are low risk, pay dividends, and have above average growth.
On average with dividends, it’s much higher than the cpi

[WesMan]

The inflation rate is currently 5.39 percent. But, my money market fund, where I have 30 percent of my portfolio, is yielding 0.01 percent. So, I just moved 10 percent of it into my junk bond fund, which is only yielding 3 percent. My short term and intermediate term bond funds are yielding 0.6 and 1.5 percent. My only investment that has any chance to exceed inflation is my S&P stock index fund. I feel like the Federal Reserve is stealing money from me by keeping interest rates artificially low.
No reply allowed!!!!!!!!!!!!!!

[bumpa]

I already have 35 percent in stocks. It's the other 65 percent that I think I should at least be able to at least keep up with inflation. I don't want to increase my stock percentage.

Sorry but the stock market is the best place to increase your investment returns. Personally I think your allocation should be flipped, 65% stocks and 35% cash. Granted you may need some professional advice to help if you're not able or willing to do the work yourself. Don't let anyone push you toward crypto, to volatile.

[Catalina36]

Place your money in the SP500 up over 15% YTD

[dewilson58]

Place your money in the SP500 up over 15% YTD

Not what he wants Mr. Obvious.

[dewilson58]

I like funds - to diversify risks.
These are among the highest paying funds that seek out high dividend paying equities.


SDIV

Global X SuperDividend ETF

8.56%
DVYE
Shares Emerging Markets Dividend ETF
8.21%
SDEM
Global X MSCI SuperDividend Emerging Markets ETF
7.65%
DIV
Global X SuperDividend U.S. ETF
7.38%
EFAS
Global X MSCI SuperDividend EAFE ETF
6.25%
DEM
WisdomTree Emerging Markets High Dividend Fund
5.63%
FGD
First Trust Dow Jones Global Select Dividend Index Fund
5.60%

The OP is not looking for stocks or stock funds.
:ohdear:

[dewilson58]

QYLD is an ETF that generates 10-12% dividends paid monthly using a covered call strategy with the Global X NASDAQ 100. It has consistently paid these high dividend since inception eight years ago. Net asset value will vary depending on the performance of the stocks in the NASDAQ 100 (QQQ).

This ETF is returning investment, not just paying out earnings.
:ohdear:

[l2ridehd]

You are looking at this wrong by trying to make any single investment beat inflation. You should have a highly diversified set of investments that include stocks, bonds, domestic, international, and what you want is the total return to exceed inflation. That is the only way to maximize returns and minimize risk. I keep 6 months of cash/money market total expenses. I keep 60% stocks and 40% bonds. 42% of stocks is domestic and 18% is international. 25% of bonds is domestic and 15% is international. I use total market index funds for these 4 investments. Re-balance to those % every 6 months. This forces you to sell high buy low. This mix maintains a very low risk profile with a return that will always exceed more risky portfolios over time.

I also add a small cap tilt to the stocks and use a small % to dabble in dividend stocks and some high risk high return stocks. But the only measure of success is what is the total return, not any single investments return. That is a very dangerous way to look at your total investments.

[fcgiii]

Can be but an electric utility that has nuclear power plant and it blows up might not be able to continue a dividend.

Modern nuclear power plants are very safe. Of the worst power plant disasters in history only the Chernobyl incident made the top five.

What is the worst kind of power plant disaster? Hint: It's not nuclear. (https://gizmodo.com/what-is-the-worst-kind-of-power-plant-disaster-hint-i-5783526)

Dam and natural gas incidents have been far worse. Nuclear gets a bad rap due to Hollywood generated hysteria and breathless media coverage. But it is the only practical technology that can get us away from fossil fuel power.

[stevecmo]

You are looking at this wrong by trying to make any single investment beat inflation. You should have a highly diversified set of investments that include stocks, bonds, domestic, international, and what you want is the total return to exceed inflation. That is the only way to maximize returns and minimize risk. I keep 6 months of cash/money market total expenses. I keep 60% stocks and 40% bonds. 42% of stocks is domestic and 18% is international. 25% of bonds is domestic and 15% is international. I use total market index funds for these 4 investments. Re-balance to those % every 6 months. This forces you to sell high buy low. This mix maintains a very low risk profile with a return that will always exceed more risky portfolios over time.

I also add a small cap tilt to the stocks and use a small % to dabble in dividend stocks and some high risk high return stocks. But the only measure of success is what is the total return, not any single investments return. That is a very dangerous way to look at your total investments.

^^^^^^^^^^ This

[dewilson58]

You are looking at this wrong by trying to make any single investment beat inflation.

You missed the whole point.
:1rotfl:

[Pmarlow]

The inflation rate is currently 5.39 percent. But, my money market fund, where I have 30 percent of my portfolio, is yielding 0.01 percent. So, I just moved 10 percent of it into my junk bond fund, which is only yielding 3 percent. My short term and intermediate term bond funds are yielding 0.6 and 1.5 percent. My only investment that has any chance to exceed inflation is my S&P stock index fund. I feel like the Federal Reserve is stealing money from me by keeping interest rates artificially low.
Check out the Ford Interest Advantage money market account. It pays between 0.45-0.65 depending upon how much you have invested. Been using it for decades.

[KAM+6]

This is a bill/ packing slip i received showing a tariff surcharge of 17%.

We were told China was going to pay.

[Carla B]

OP wasn't asking about how he should invest. I'm confident he already knows that. He was merely stating that the Fed is keeping rates low on purpose instead of letting market forces set them. Gotta agree with that. It seems to me they've kept tight reins on rates since the big blowup of 2008.

[coralway]

The inflation rate is currently 5.39 percent. But, my money market fund, where I have 30 percent of my portfolio, is yielding 0.01 percent. So, I just moved 10 percent of it into my junk bond fund, which is only yielding 3 percent. My short term and intermediate term bond funds are yielding 0.6 and 1.5 percent. My only investment that has any chance to exceed inflation is my S&P stock index fund. I feel like the Federal Reserve is stealing money from me by keeping interest rates artificially low.





You could do a lot better - look around and do some dd.