That's the rate we refi'd from last October... to a 30-year fixed 3.625%. From that new lower perspective, everything looks like high-interest debt.I get a chuckle out of the idea that a 4.5% mortgage is "high interest debt".
That's the rate we refi'd from last October... to a 30-year fixed 3.625%. From that new lower perspective, everything looks like high-interest debt.I get a chuckle out of the idea that a 4.5% mortgage is "high interest debt".
I get a chuckle out of the idea that a 4.5% mortgage is "high interest debt".
"You mean I get a lock on a rate that is only slightly higher than average inflation, on a note that cannot be called, a payment that is fixed and can never go up, that I can keep for 30 years? Count me in!"
Since we are in a world of evry low yields on low volatility/"safe" investments, what is the best course of action for a cnservative, highly risk averse investor?
We have a somewhat shaky tenant on a rental property; we are going to eventually sell the property and put the proceeds in more bonds.
After seeing your intelligent posts here I'm going to assume this questions is somewhat rhetorical based perhaps in frustration, and you know what type of investments out there are a good fit.
I've always thought our never ending search for higher returns was part of a feedback cycle. Needing higher returns...growth...inflation...work harder and look for higher returns...
Rather than looking for higher returns, I've always done much better looking for ways to simplify, spend less, and actually increase my standard of living by ridding myself of stress and responsibility.
Rather than looking for higher returns, I've always done much better looking for ways to simplify, spend less, and actually increase my standard of living by ridding myself of stress and responsibility.
I'm now ridding myself of a lot of clothes...
This thread is useless without pics...
Lest there be any confusion, this was definately a rhetorical question to stimulate debate. I don't think anyone would call me a risk averse investor, given that my portfolio is mostly equities and includes a company that recently exited bankruptcy, small foreign companies, highly leveraged industrials, junk-rated commodity producers, etc. I ask because there are a lot of people in a real quandry as to what to do and I have to advise family members who have lots lower risk tolerance than I do. The approach I have taken for family members is to diversify, include a modicum of equity exposure, and add in stuff like convertible bonds, merger arb funds, etc. that have reduced volatility while still having return potential. Also helps to be scanning for the occasional fat pitch, like the fluke Pen Fed 5% CD offer last year.
The world isn't coming to an end but I can't help but think the printing and borrowing is leading to yet another bubble. This could end badly.
Brewer, For the benefit of everyone else will you please be more specific describing real examples of stocks, bonds etc. For example, I will recommend buying dividend paying, stocks, mutual funds & preferred ETF'S----PGF, PFF, DLTNX, GAUCX, NLY, AGNC, FTR, MO, GUT, HYG etc. All these pay > 6% dividends. I own most of these and am continuously looking for new ideas.
Thanks
6. Accept a lower standard of living.
A risk averse investor needs to minimize the risk of portfolio loss. Accept the lower yield, protect principle, and wait for an opportunity. This time is not different and the opportunities will be there.
Conservative portfolio mix options I currently use are:
As always, do your own DD, YMMV and consult your proctologist before...
I like the PIMCO fund as well but it is hard in a taxable portfolio. Perhaps DBC or GSG?All of the CEFs trade at fat discounts to NAV. I wish there were a better alternative to commodity futures funds that would give commodity exposure without doing so via commodity producer equities.
I did. He said the outlook was sh!tty.and consult your proctologist before...
We should emphasize that a strategy of buying high quality companies with growing dividends is not the same as a high dividend approach, which last approach often gathers some pretty shakey companies.A risk averse investor will probably not be into buying high-dividend paying stocks because they are still much riskier than bonds. Larry Swedroe and his colleague Jared Kizer put this together to show why:
Why a High-Dividend Stock Strategy Isn’t a Good Approach - CBS MoneyWatch.com
Good article to link to, LOL. High dividend (and even good quality, low payout) stocks have been around for decades. There must be some reason why some very bright people have suggested that such stocks belong on the equity side of the portfolio. Maybe it's because they are equity. Most of us do not want high volatility in our entire portfolio.A risk averse investor will probably not be into buying high-dividend paying stocks because they are still much riskier than bonds. Larry Swedroe and his colleague Jared Kizer put this together to show why:
Why a High-Dividend Stock Strategy Isn’t a Good Approach - CBS MoneyWatch.com
If you didn't sell at the bottom in 2008 you can "stay the course". I didn't sell either but for me personally if I had-60-70% equities in 2008 I wouldn't sleep well and might have sold at the bottom