Investment suggestions?
Hi EREr's,
well this is indeed an obvious question...
how can I invest my savings to guarantee a decent passive income?
and what is for you a decent % return?
Assuming I don't want to risk the capital and I want a stable income to live out of.
I've not 30% in saving account (2.4%) and 70% in bonds and founds (estimated 3%).
I like simple things and I would prefer not to be obsessed by investments.
Thanks!
D
well this is indeed an obvious question...
how can I invest my savings to guarantee a decent passive income?
and what is for you a decent % return?
Assuming I don't want to risk the capital and I want a stable income to live out of.
I've not 30% in saving account (2.4%) and 70% in bonds and founds (estimated 3%).
I like simple things and I would prefer not to be obsessed by investments.
Thanks!
D
The most stable system I know of is Harry Browne's permanent portfolio. It does well in nearly all circumstances, even when everything else is bleeding. It's simple and easy.
But while it's low risk, the return is also modest. During good times it seriously underperforms stock-heavy portfolios.
Historical returns:
EU&US versions: http://www.marcdemesel.be/2010/06/data- ... enten.html
US version: http://crawlingroad.com/blog/2008/12/22 ... l-returns/
But while it's low risk, the return is also modest. During good times it seriously underperforms stock-heavy portfolios.
Historical returns:
EU&US versions: http://www.marcdemesel.be/2010/06/data- ... enten.html
US version: http://crawlingroad.com/blog/2008/12/22 ... l-returns/
@Marius: thanks a lot! I've been thinking about reading that book and forgot about it until your post.
These results are very impressive, 1970-2003 [when author died I think ]
Max: 36.7%
Min: -6.2%
Average: 9.515%
% years positive: 29 out of last 33, 88%
http://www.harrybrowne.org/PermanentPor ... esults.htm
I'm going to read that book as soon as I can get my hands on it.
@il-besa: if you want to stay in USD you should look into rewards checking accts. There are some available nationwide that pay 4%, with a few caveats... Some even better rates for some local banks.
These results are very impressive, 1970-2003 [when author died I think ]
Max: 36.7%
Min: -6.2%
Average: 9.515%
% years positive: 29 out of last 33, 88%
http://www.harrybrowne.org/PermanentPor ... esults.htm
I'm going to read that book as soon as I can get my hands on it.
@il-besa: if you want to stay in USD you should look into rewards checking accts. There are some available nationwide that pay 4%, with a few caveats... Some even better rates for some local banks.
-
- Posts: 28
- Joined: Thu Jul 22, 2010 10:20 pm
il-besa, I *strongly* advise against finishing Rich Dad Poor Dad - or following any of its advice. Kiyosaki's story is full of inconsistencies and downright lies... You can read a *very* detailed review here: http://johntreed.com/Kiyosaki.html
-
- Site Admin
- Posts: 16122
- Joined: Fri Jun 28, 2013 8:38 pm
- Location: USA, Zone 5b, Koppen Dfa, Elev. 620ft, Walkscore 77
- Contact:
It is mostly a combination of qualitative picks, sector focused (currently telecom), dividend payers, based on a need for cashflow and what I think the future will be like.
I use the Dogs of the Dow in my IRA.
I would prefer to move to a more mechanical approach (to allow me to agonize less about buying and selling decisions), but I need to think more about this.
Don't listen to what I do though... I've only been investing for 5-6 years.
I very much educate myself by doing. What this means is that there's some inertia in my portfolio simply because I don't want to trigger capital gains taxes by switching things around.
I use the Dogs of the Dow in my IRA.
I would prefer to move to a more mechanical approach (to allow me to agonize less about buying and selling decisions), but I need to think more about this.
Don't listen to what I do though... I've only been investing for 5-6 years.
I very much educate myself by doing. What this means is that there's some inertia in my portfolio simply because I don't want to trigger capital gains taxes by switching things around.
What about this ETF?
http://www.ftportfolios.com/Retail/etf/ ... Ticker=FDL
Currently yielding about 5%. Pretty heavy in telecom and utilities, but the P/E is not too bad < 15. Price/book is a little high but not too bad.
http://www.ftportfolios.com/Retail/etf/ ... Ticker=FDL
Currently yielding about 5%. Pretty heavy in telecom and utilities, but the P/E is not too bad < 15. Price/book is a little high but not too bad.
I look at that FDL chart and all I can see is the "h" pattern, poised to take out 08 lows.
This chart demonstrates my fears, and why I have less than 15% in equities right now.
http://www.kingdom-investment-club.com/ ... 3_copy.jpg
This chart demonstrates my fears, and why I have less than 15% in equities right now.
http://www.kingdom-investment-club.com/ ... 3_copy.jpg
-
- Posts: 280
- Joined: Thu Jul 22, 2010 10:15 pm
@il-besa, don't be too dismayed. While I thought there was a lot of carp in RDPD, the key insight for me (similar to Jacob's) was K's definition of an asset. Before RDPD, I would have considered my car, M/C, and house assets. I now see them as expenses/liabilities and my various investments as assets.
As for investments, I think the current environment is about as bad as it can get for folks with cash to invest. Equities seem overpriced, bonds appear to be bubblish, and gold is in a definite bubble. I'm 60/40 equities/cash, looking for something with serious value to put the cash portion in.
As for investments, I think the current environment is about as bad as it can get for folks with cash to invest. Equities seem overpriced, bonds appear to be bubblish, and gold is in a definite bubble. I'm 60/40 equities/cash, looking for something with serious value to put the cash portion in.
I have invested a good amount into prosper.com with a roughly 12% return rate so far (which includes 3 charge-offs).
The problem with prosper is that you need to do some analyzing, but you could automate and let them do it for you.
I also invest in ETF's, 5 specific ones, which overall have returned about 10% since starting the account.
Lastly, I trade/track my companies stock in my 401k and make moves based on educated guesses. Since the company has a relatively stable position, I follow the whims and act accordingly.
I'm currently saving up cash to start dogs of the dow in january (about 25k), and then a separate day trading account to make moves between about 10 to 15 stocks following the 1% rule.
The problem with prosper is that you need to do some analyzing, but you could automate and let them do it for you.
I also invest in ETF's, 5 specific ones, which overall have returned about 10% since starting the account.
Lastly, I trade/track my companies stock in my 401k and make moves based on educated guesses. Since the company has a relatively stable position, I follow the whims and act accordingly.
I'm currently saving up cash to start dogs of the dow in january (about 25k), and then a separate day trading account to make moves between about 10 to 15 stocks following the 1% rule.
-
- Posts: 5406
- Joined: Wed Jul 28, 2010 3:28 am
- Location: Wettest corner of Orygun
In the US, look at Master Limited Partnerships. They're primarily in the pipeline & energy business. Some ticker symbols to get you started are WPZ, OKS, NSH, SXL, EPD. "King coal" MLP tickers are ARLP, NRP.
There are also financial MLPs, but the one I'm familiar with is not as stable for generating income.
Like a REIT, the best way to value MLPs is on their distributable cash flow. There are tax consequences to MLPs, particularly if you're trading them (which I do) and you might even have to file additional state taxes (if the income from operation in that state is high enough).
There are also financial MLPs, but the one I'm familiar with is not as stable for generating income.
Like a REIT, the best way to value MLPs is on their distributable cash flow. There are tax consequences to MLPs, particularly if you're trading them (which I do) and you might even have to file additional state taxes (if the income from operation in that state is high enough).