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where safe 2% plus
Old 02-09-2005, 03:00 AM   #1
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where safe 2% plus

Where is a good safe place to get a 2% real return ?
Tips - Cds - bond mutual funds -
Is there a downside to TIP mutual funds ?

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Re: where safe 2% plus
Old 02-09-2005, 04:10 AM   #2
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Re: where safe 2% plus

2%? All we need is a third party arrangement and you can have your 2%.

I'd give anything to be able to margin at a 2% rate.
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Re: where safe 2% plus
Old 02-09-2005, 06:07 AM   #3
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Re: where safe 2% plus

Az, note that he said 2% real, not nominal.

Searcher, I suppose you'll have to dig around. Something floating rate would probably give you a rough approximation of a real return, like maybe a bank loan fund or something similar. Alternatively, look around at various TIPS, I bond and inflation-indexed options. I suspect that a guaranteed 2% real will be tough to come by.
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Re: where safe 2% plus
Old 02-09-2005, 06:11 AM   #4
 
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Re: where safe 2% plus

Hey azanon, you can margin at -0- % if you have enough credit
cards

JG

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Re: where safe 2% plus
Old 02-09-2005, 07:09 AM   #5
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Re: where safe 2% plus

Where are these swr 4% rates comming from, or are those based on averages vs guarenteed ?
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Re: where safe 2% plus
Old 02-09-2005, 07:25 AM   #6
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Re: where safe 2% plus

Head on over to www.retireearlyhomepage.com and look at the safe withdrawal rate studies.
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Re: where safe 2% plus
Old 02-09-2005, 12:40 PM   #7
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Re: where safe 2% plus

Quote:
Where are these swr 4% rates comming from, or are those based on averages vs guarenteed ?
More specifically, here: http://www.retireearlyhomepage.com/restud1.html

In short, the 4% rule will consume at least some of your principle. The study is done on historical survivability of the portfolio over given timespans with given investment mixes. It's not a Norwegian-widow-living-off-dividends-and-interest scenario.
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Re: where safe 2% plus
Old 02-09-2005, 12:59 PM   #8
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Re: where safe 2% plus

I have a Morgan Stanley CPI/Floating
rate bond which yields 220 bps + CPI.
It's rated as AA3/A+, due 2013.
I suppose you could shop around for
equivalent floating rate instruments.

Anyone knows of any good sites to search
for these floating rate notes?

Joe
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Re: where safe 2% plus
Old 02-09-2005, 01:05 PM   #9
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Re: where safe 2% plus

Yes, you can find them on Vanguard's Bond Desk
data base. You have to have a brokerage account,
however.

Cheers,

Charlie
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Re: where safe 2% plus
Old 02-09-2005, 01:55 PM   #10
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Re: where safe 2% plus

Sounds like 2% is not the issue, in fact a 4% average is probably closer to reality. It is the 'guarentee' of 2% that is what is harder to get. Do I have it right ?
In other words if I figure that 2% over inflation leaves us in good shape, then we we should be.
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