Investing 102

[John510]

Whats a good thing to invest a large chunk of money into? Looking for at least a 10% return if thats even possible.....


Also would like to have access to the money.

Commercial real estate a good idea?

[GregWeld]

Originally Posted by John510

Whats a good thing to invest a large chunk of money into? Looking for at least a 10% return if thats even possible.....


Also would like to have access to the money.

Commercial real estate a good idea?

John -


That is not an easy one two answer... because you failed to provide adequate info such as: Term? i.e., retirement - one week - 5 years etc

Also - can you stand (suffer) a decrease in capital during the holding period...

Commercial real estate is ILLIQUID.... it provides the cash flow you're looking for - although not 10% - more like 7% -- you would NOT have access to the capital.

So when you say you want to have access to the money -- do you want access to the cash flow the capital produces? Or do you need to have access to the capital as well?


Personally - I use three different stocks to hold cash while providing me with a return.

Go to Google Finance and just "search" these three stock symbols:

JNK

JNK is a a Junk Bond ETF (meaning a basket of high yielding low grade bonds) that pays a monthly dividend of 7.12% (annual) ---- or in other words 21 CENTS per share per month.

HYG


HYG is a high yield bond fund consisting of high yielding CORPORATE bonds. It pays 6.41% - or 49 cents per share per month.


I use these because in the CURRENT fairly stable interest rate market -- these have a fairly stable per share price... and I like the monthly income while waiting for less risky investments. Since they pay monthly -- I don't have to pay as much attention to the timing of the buy or sell - since I'll only miss out on ONE months dividend rather than an entire quarters worth (3 months) if I miss time the event.

NLY


NLY - Annaly Capital Management is a mortgage based or mortgage RATE spread based company that pays a HUGE dividend quarterly... of 11.36% or 45 cents per share per QUARTER.


THESE THREE ARE HIGHLY RISKY BASED ON INTEREST RATES.... but as I said above -- right now -- interest rates seem to be fairly stable. That can change and when it changes (we don't know how long or when) the capital basis will change - perhaps just a little - or perhaps a lot. That depends on how much the FED decides to jump the rate.