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Hypothetical - If you wanted a "safe" return of approx. 5% over the next eight years...
Posted on 11/18/23 at 12:13 pm
Posted on 11/18/23 at 12:13 pm
If you wanted to do your best to approximate a 5% annualized return over the next 8 years, but were hoping not to be in anything with much risk, what would you do with the money at issue? Thank you.
11
Posted on 11/18/23 at 12:28 pm to Zachary
quote:
but were hoping not to be in anything with much risk
Being that that’s a relative, could you be more precise in how you define that? You’re looking to protect the nominal principal or more concerned about inflation risk, etc?
Posted on 11/18/23 at 1:32 pm to Zachary
Verizon
Altria
Truist
Altria
Truist
Posted on 11/18/23 at 1:35 pm to Zachary
Tbills get you fairly close to that.
Posted on 11/18/23 at 1:44 pm to lynxcat
Tbills wont pay this for 8 years though. As much as I hate to say it, depending on the age of the questioner, you could easily do this in a fixed annuity. Seems like it wouldn’t be that simple if I asked any questions that actually count though.
Posted on 11/18/23 at 2:01 pm to makersmark1
ETF?
Posted on 11/18/23 at 3:08 pm to lynxcat
quote:
Tbills get you fairly close to that.
Posted on 11/18/23 at 3:32 pm to Zachary
Treasury ladder would get you 5.24% to 4.4% guaranteed with zero risk for the next 8 years.
https://home.treasury.gov/resource-center/data-chart-center/interest-rates/TextView?type=daily_treasury_yield_curve&field_tdr_date_value_month=202311
https://home.treasury.gov/resource-center/data-chart-center/interest-rates/TextView?type=daily_treasury_yield_curve&field_tdr_date_value_month=202311
This post was edited on 11/18/23 at 3:37 pm
Posted on 11/18/23 at 10:25 pm to Boomer Rick
Southern Company has a 4 percent dividend yield and modest growth.
Posted on 11/18/23 at 11:23 pm to Zachary
What are 5 year CDs paying? You could try to build a ladder.
Posted on 11/19/23 at 6:53 am to SloaneRanger
quote:
What are 5 year CDs paying?
Bankrate shows several paying above 4% on 5 yr CDs, with one new online bank paying 5.25%.
Posted on 11/19/23 at 7:08 am to Zachary
VMFXX
Vanguard Federal Money Market Fund pays 5.3%.
Vanguard Federal Money Market Fund pays 5.3%.
Posted on 11/19/23 at 7:20 am to RedlandsTiger
Yeah, but those high MM rates can go away with the quickness.
Posted on 11/19/23 at 8:39 am to gpburdell
This is the answer. Risk free and free of state income taxes
Posted on 11/19/23 at 11:27 am to Zachary
quote:
If you wanted a "safe" return of approx. 5% over the next eight years...
8-year AAA munis are trading ~ 3.30%. Depending on which tax bracket you're in, that gets you around 5% tax-equivalent.
Posted on 11/19/23 at 3:41 pm to Zachary
8 years is a very specific time frame. Why don’t you share a little more context.
Posted on 11/19/23 at 4:43 pm to Zachary
ATHENE had a fixed annuity paying 6.15% for five years I believe. But that was a couple weeks ago.
Posted on 11/19/23 at 9:28 pm to Zachary
An 8 year single A rated corporate bond will get you over 5.00%. Wal-Mart, IBM etc.
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