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Conversationalist
Posts: 9
Registered: ‎09-01-2017

Re: RETIREMENT INVESTMENT

Message 1 of 9 (417 Views)

I am happy to share items I invest in which are all designed for income:

https://www.retirementincome.net/alternative-investments-for-retirement/

I think one of the most overlooked investments for income is private mortgages (called trust deeds in some states).  Your financial advisor will never mention these because he does not offer them.

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Recognized Social Butterfly
Posts: 795
Registered: ‎03-06-2010

Re: RETIREMENT INVESTMENT

Message 2 of 9 (660 Views)

Retiredtraveler - Thank you for responding.  I appreciate your input and will consider your experience as I try to decide whether this type of investment will be the right one for me. 

Thank you.

Trusted Social Butterfly
Posts: 7,098
Registered: ‎02-14-2008

Re: RETIREMENT INVESTMENT

[ Edited ]
Message 3 of 9 (757 Views)

"...The stock market has been crazy....my financial advisor has never mentioned "junk bonds" because he knows I am a conservative investor. I've had my share of speculative type of investments but at my age I'm through taking too many chances and I definitely don't like losing money....".

 

I know I won't convince you, and there is no intent to. For the purpose of discussion, I'll state that it's really difficult to determine what is 'conservative' in investing. Junk bond funds have not shown themselves to be 'risky'. I know of none of the better rated funds (and someone correct me if they have better intel), to have done poorly, or gone under. The high-yield funds I have certainly don't perform as well as stock funds, but they have been consistently good, across the board. I have the facts-and-figures (and steady income), to show that.

   Junk bond funds, and I stress funds, have not demonstrated the risk so often assigned to them. If you're curious, ask your financial advisor to show you what is so risky with these better-rated, Morningstar junk bond funds.

  Anyway, just providing discussion. I know, from 40 plus years of investing, the money 'experts' are wrong, most of the time. I've never paid for financial advice, and I retired at 55 solely on my investments (well, DW and I both retired on those investments). 10+ years later, 95% in junk bonds, still going strong (again, realizing I missed the huge gains in the stocks, but have kept my income stream consistent for 10 years).   

   One piece of trivia. After the big 2008 crash, junk bond funds dropped in half in price, most about 60% further. They were priced with an assumption of a roughly 35% default rate. The sky was falling after the crash. In the Great Depression, the highest default rate for corporate bonds was 18% -- the highest. Once again, it was a great example of how so few people understand the macroeconomics of the markets, and simply let their misguided emotions rule their investment decisions. 


Just think. The world was built by the lowest bidder.
Recognized Social Butterfly
Posts: 795
Registered: ‎03-06-2010

Re: RETIREMENT INVESTMENT

Message 4 of 9 (767 Views)
retiredtraveler,
The stock market has been crazy....my financial advisor has never mentioned "junk bonds" because he knows I am a conservative investor. I've had my share of speculative type of investments but at my age I'm through taking too many chances and I definitely don't like losing money.
Trusted Social Butterfly
Posts: 7,098
Registered: ‎02-14-2008

Re: RETIREMENT INVESTMENT

Message 5 of 9 (796 Views)

SIMPLEGAL wrote:
".....Good suggestions for sure, and I have both but am hoping to findsomething with a better return....".

That's the rub. The general rule, forever, has been greater risk, greater return. How risky a specific investment may be is the source of endless discussion.

   I invest, almost exclusively in my old age, in 'junk bonds' (low rated corporate bonds). However, I mitigate the risk by investing in bond funds. I get less return, but the chances of a fund 'tanking' is pretty close to nil.  If you read about them, you'll get warnings (as you will with all investments). But, I'm happy with a pretty steady 8%-10% total return, year-after-year. 

   Now, someone else will come along and say, look, the stock market is going nuts, you should have invested in that. Yup, I missed the huge returns of the last 5 years. But, sooner or later, we'll have a major correction in the market. If past history has anything to do with current conditions, we're way overdue for a correction. So, how risky is that?

   That should keep you confused for awhile................

     


Just think. The world was built by the lowest bidder.
Recognized Social Butterfly
Posts: 795
Registered: ‎03-06-2010

Re: RETIREMENT INVESTMENT

Message 6 of 9 (819 Views)
Thank you for responding to my post. Good suggestions for sure, and I have both but am hoping to find something with a better return.
Valued Social Butterfly
Posts: 8,777
Registered: ‎08-18-2008

Re: RETIREMENT INVESTMENT

Message 7 of 9 (832 Views)

SIMPLEGAL wrote:

Can anyone recommend a safe, profitable investment for income?

No stocks, real estate, interest from bank - HA!

What is left without risk?

 

 


Other than FDIC insured accounts and US Treasury Investments, there really isn't anything that is totally risk free - meaning a guarantee of not losing principal if rules are follow.

 

U.S. Treasury.gov - Treasury Direct

 

However, there are other investments which you can buy (index funds) which have pretty low risk - but still risk.

 

Super Social Butterfly
Posts: 1,011
Registered: ‎12-31-2016

Re: RETIREMENT INVESTMENT

Message 8 of 9 (841 Views)

Bonds?   

Recognized Social Butterfly
Posts: 795
Registered: ‎03-06-2010

RETIREMENT INVESTMENT

Message 9 of 9 (845 Views)

Can anyone recommend a safe, profitable investment for income?

No stocks, real estate, interest from bank - HA!

What is left without risk?