re: If I'm looking to make a 5% annual return (after tax) by investing in funds...

quote:

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How much "risk" would I need to tolerate?

I'm not trying to hit a hot stock and make 30% on my money in a year, but I'd like to be able to count on 4-6% (after taxes) a year on my savings as a little supplement income that I can use to pay my mortgage (less than 4% rate). If I can't get 4% each year, I'd just as soon pay down my mortgage.

How much risk would I need to be willing to accept if I got an advisor to take my savings and manage it, and I told him / her I was targeting 4-6% per year (on average) as income?

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Look at exchange traded debt of BDCs. A 7 year piece of paper is yielding in the high 6s low 7s.

One of the safest investments out there. It is fixed income but they pay outsized yields and are very safe. IMO.

Check out www.dividendyieldhunter.com for a list.