I’m looking to put about 100k to work but no individual company sticks out for me. I’m thinking about 50% into growth (maybe tech) and 50% into a dividend paying ETF. These are long term plays, not looking to make a quick buck.
I’m not looking for energy, I’ve got a good bit of exposure already and I’m quite happy about that.
Right now I am reinvesting dividends, but not automatically. I don’t need the income yet. I tend to let the dividends collect in the account and reinvest when there are big down days. It probably doesn’t make a difference but it makes me feel like I am beating the market.
I am not a fan of annuities and do not own any. So many are combinations of different aspects that there is really no way to evaluate them. Generally, if one promises a guaranteed return, the high end of your growth will be limited. Some are combined with insurance, some have continuing payments after your death, some don’t, etc. I have come to believe more options make it more confusing, and it is not too far a stretch to make the annuity more beneficial to the insurer than to the insured.
The only one I might ever consider is an immediate annuity (pay the money and payments immediate begin). But, only because it is understandable. Even with that, the first X years (depending on your age and the payment) are simply a return of your money. In my case, for example, they are offering about 6.5-7% of the invested amount annually. That means the first 14 years are just my money being paid back with the benefit coming later after that.
My investing objective has always been to amass the amount of funds over time that would allow us to have an income stream that produces the income we need to live our lives as we want to live it. So far, so good. Others may feel very differently.
As a federal retiree I suspect you will have a pension. That is, essentially, an annuity. If you looking only for a 4% return, there are preferreds (or PFF) that will provide that.
I am totally not a fan of annuities, although Clark mentioned something called “immediate payout annuity” that was tolerable. Ive never looked into them. The investment itself is not liquid and there are potentials for capital calls in every contract I have seen. I live by the premise of doing banking at banks, saving at online fintechs, investing at brokerage houses and insurance from insurance companies. I don’t want to do investing with an insurance company or banking from a brokerage…
What is your objective? Just straight income? How about risk of capital?
I know my window hasn’t closed yet but I’m missing out on 6 or 7% gains. I had decided 50/50/100 in SCHD, VIG, and VUG. I have very little in tech which is why I’m going a little heavier there. I’m going to Egypt for 2 weeks and I’m hoping there is a dip over that time.
Sounds like a 5 year MYGA or multi year guaranteed annuity. Like immediate and deferred income annuities, they’re not a terrible product. They’re very simple products and have fees but they’re reasonable as you receive the stated rate of return. There’s no unicorns chasing the butterflies. The biggest issue of MYGAs is they’re not FDIC insured
Equity indexed annuities are a fixed index annuity product and are sold as giving you stock market gains with no risk of loss and sometimes are sold as having no fees aka unicorns chasing the butterflies at the free dinner seminar. In reality they were created to compete with CD returns. The reality is these products are junk and compensate the advisor very much. They tend to have a 10+ year commitment with a one year guarantee in terms. These products are sold purely for the principal protection where your return is low or where you forfeit your principal in exchange for a rider. They’re not FDIC insured but the biggest issue is advisor compensation
Ive never had interest in africa, completely my daughters idea. I looked into it and got very interested, should be an epic trip. Couple days in cairo and alexandria, then giza and flying down to aswan. Then taking a 5nt nile cruise up to luxor and then back ro cairo to fly out.
A friend highly recommended tying in jerusalem and jordan but already had flights booked by then. If egypt really is epic, id have no problem with a longer trip to the region. Were flying turkish air over but couldnt arrange a layover in istanbul becuase of covid, thats still on the list.
Earlier today I was contemplating buying some Rivian. I wanted to do more research before I pulled the trigger. I did buy some Ford earlier today.
I think the auto makers are going to have a solid rebound after the recession. The supply constraints and aging of vehicles on the road is going to drive demand as soon as people have a few bucks. Also as soon as supply/demand balances, I think it will bring in more buyers willing to pay MSRP to get more fuel efficient cars.