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I think you're looking at this the wrong way. Decide the level of risk first. That dictates your stock/bond mix. After that, you get whatever the market give
by tmorton 13y ago
I think you're looking at this the wrong way. Decide the level of risk first. That dictates your stock/bond mix. After that, you get whatever the market gives you.
If you're looking for a guaranteed 5%, it doesn't exist right now, and it won't be back unless inflation spikes close to 5%.
- lancewiggs 13y agoAgreed - a well diversified portfolio of stocks and bonds across sectors and geographies is the right approach to maximise return versus risk. I'd keep a little aside for investing where you have an unfair advantage versus Wall St. That might be getting into a tech stock early, or investing in an early stage company through friends. For the latter don't expect to get your money back soon, if ever.
- deleted 13y ago[deleted]
- adventured 13y agoAT&T pays a 5.3% dividend. Given they're still effectively splitting a monopoly with Verizon, that's pretty close to guaranteed. You'd want to track the company's quarterlies, the competition (risk of a combined Spring + T-Mobile hurting them), and any big business moves, but otherwise it's predictable. The stock itself - and your principle - would get compressed in any market down turn though. The nice thing about holding T, is that you can liquidate your entire principle at any time easily.
- chalst 13y agoThe last big bond issue by AT&T paid 1.4% http://www.bloomberg.com/news/2013-11-20/at-t-said-to-plan-offering-of-2-billion-in-five-year-bonds-1-.html http://www.bloomberg.com/news/2013-11-20/at-t-said-to-plan-o... I'd not call the NPV of any tech stock predictable.
- patmcc 13y agoEven if they pay a 5.3% dividend every year, if it ends up going down even 3% in a year, suddenly you're getting effectively a 2% dividend since you've lost capital (rough numbers, no inflation, you get my point).