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Message
FKIQX Fund
Posted on 7/14/26 at 7:15 pm
Posted on 7/14/26 at 7:15 pm
60 years old, retiring in 18 months. I have 40k cash I need to invest somewhere. I was told the Franklin Income Fund (FKIQX) would be a good option for my situation.
What do the people of money talk say?
I just need something better than it sitting in the bank drawing nothing while inflation eats it up.
Thank you
What do the people of money talk say?
I just need something better than it sitting in the bank drawing nothing while inflation eats it up.
Thank you
6
Posted on 7/14/26 at 9:41 pm to jake wade
I’m assuming an advisor showed you this fund.
Your $40k will be down 3.75% immediately with the upfront sales charge. Also, it’ll charge you 0.71% annually with that expense ratio.
For money that just needs to be “better than it sitting in the bank” I definitely wouldn’t recommend this. It has 50% in stocks and 25% in high yield bonds which trade more like stocks due to their lower credit ratings.
Many other options for better rates than a bank but this fund is expensive and in a different risk pool.
Take a look at short duration fixed income funds or ETFs. Here are a few…MINT, FTSM, BIL etc.
Your $40k will be down 3.75% immediately with the upfront sales charge. Also, it’ll charge you 0.71% annually with that expense ratio.
For money that just needs to be “better than it sitting in the bank” I definitely wouldn’t recommend this. It has 50% in stocks and 25% in high yield bonds which trade more like stocks due to their lower credit ratings.
Many other options for better rates than a bank but this fund is expensive and in a different risk pool.
Take a look at short duration fixed income funds or ETFs. Here are a few…MINT, FTSM, BIL etc.
This post was edited on 7/14/26 at 9:43 pm
Posted on 7/14/26 at 9:53 pm to jake wade
First don't listen to that advisor he is driving you into commission funds
Vanguard income funds like VWENX can give you the same performance for what less fees and no commissions.
If you don't need the yield Vanguard Balanced Index Fund Admiral Shares (VBIAX)
Vanguard income funds like VWENX can give you the same performance for what less fees and no commissions.
If you don't need the yield Vanguard Balanced Index Fund Admiral Shares (VBIAX)
Posted on 7/14/26 at 10:25 pm to jake wade
quote:
I just need something better than it sitting in the bank drawing nothing while inflation eats it up.
??? do you ever frequent this board? there are tons of options to get a better than bank interest returns. Read the sticky thread. All this stuff is discussed AD INFINITUM HERE. you need to read this board and educate yourself!
what is your risk tolerance? plenty low risk to no risk funds.
money market funds in vanguard, fidelity and schwab
you also have SGOV. all those should get you 3.5 to almost 4%
you also have some bond funds. should get 6% and up.
who told you to buy this? Edward Jones? raymond james? AG edwards? who do you use? that fund has a 3.75% front end load! RUN AWAY!
Posted on 7/15/26 at 4:21 am to TX_Tiger23
Yes, an advisor showed me this fund.
I will look into the options mentioned here. I really appreciate the advice everyone.
I will look into the options mentioned here. I really appreciate the advice everyone.
Posted on 7/15/26 at 5:55 am to jake wade
Hope the big takeaway is F that dude
Posted on 7/15/26 at 8:39 am to jake wade
Won’t repeat except will add: don’t trust that FA. There are ways to achieve same or better with less risk and cost.
Offer similar Vanguard advice (better than savings, safe, low cost, no commissions).
Money market (eg, VMRXX) and some of others already mentioned.
Offer similar Vanguard advice (better than savings, safe, low cost, no commissions).
Money market (eg, VMRXX) and some of others already mentioned.
Posted on 7/15/26 at 8:56 am to Everyday Is Saturday
Thoughts on Schwab U.S. dividend equity(SCHD) and State Street SPDR Portfolio S&P 500 High Dividend ETF(SPYD)?
Posted on 7/15/26 at 9:15 am to jake wade
For an 18-month period I would probably just park that in a high-yield savings account that's FDIC insured. Some are paying close to 4% interest right now.
Posted on 7/15/26 at 9:17 am to jake wade
Always…what is your objective, timeline and risk appetite…leads the decision. You need to answer that for yourself.
Assuming if retirement is near, you will need the money in 18 months, I would buy Vanguard Treasury Money Market Fund (VMRXX or VUSXX) for max flexibility or Treasury bills/CDs matched to the spending date if you want to lock in today’s yield, or
combination of the two.
The dividends of SCHD and SPYD do not make it safer. Why? ETF prices fluctuate. Those funds are not where I would put money needed with certainty in 18 months. If don’t need the money for 3-5 years, then perhaps yes.
If my assumption is right, here is how I would rank the choices:
1. Treasury bills/notes matched to the 18-month date
2. VUSXX
3. FDIC-insured CD matched to the date
4. VMRXX or VMFXX
5. VGSH or VSBSX
6. SCHD
7. SPYD
Assuming if retirement is near, you will need the money in 18 months, I would buy Vanguard Treasury Money Market Fund (VMRXX or VUSXX) for max flexibility or Treasury bills/CDs matched to the spending date if you want to lock in today’s yield, or
combination of the two.
The dividends of SCHD and SPYD do not make it safer. Why? ETF prices fluctuate. Those funds are not where I would put money needed with certainty in 18 months. If don’t need the money for 3-5 years, then perhaps yes.
If my assumption is right, here is how I would rank the choices:
1. Treasury bills/notes matched to the 18-month date
2. VUSXX
3. FDIC-insured CD matched to the date
4. VMRXX or VMFXX
5. VGSH or VSBSX
6. SCHD
7. SPYD
This post was edited on 7/15/26 at 9:20 am
Posted on 7/15/26 at 11:18 am to Everyday Is Saturday
This is a great answer. Nothing additional to add.
Posted on 7/15/26 at 12:29 pm to Everyday Is Saturday
Another option is BOXX, though people have varying opinions on it.
Posted on 7/15/26 at 2:57 pm to jake wade
always things like USFR and JPST as well. all with similar yields.
Posted on 7/15/26 at 7:59 pm to Everyday Is Saturday
I am retiring in 18 months but, I do not intend to draw off this money on a regular basis. I have pension, SS, 401k for that. This is money for other unplanned expenses that may come up like for instance, a new roof, A/C unit, etc.
Posted on 7/16/26 at 9:29 am to jake wade
quote:
This is money for other unplanned expenses that may come up like for instance, a new roof, A/C unit, etc.
Objective: emergency fund
Timeline: now
Risk: safe / low volatility
FWIW to you, our emergency fund is in VUSXX.
Posted on 7/17/26 at 5:17 am to jake wade
CIT Bank pays 4% and is FDIC insured to $250k with no risk.
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