Ideas to get 5-6%

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ryanbohle
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Ideas to get 5-6%

Post by ryanbohle »

I am looking for ideas for an investment.   Im looking to get about 5 or 6 percent return   I’m willing to put this investment at more risk than a bond. But ideally less risk that the stock market.  Liquidity is of little concern. Does anything fitting these parameters exist out there?

(5-6 before tax or accounting for inflation. My whole desire essentially is an investment that will cover taxes, inflation and it’s own fees. But not much more.)

Thank you in advance for your thoughts and time.
Last edited by ryanbohle on Fri Jun 18, 2021 5:00 pm, edited 1 time in total.
z3r0c00l
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Re: Ideas to get 5-6%

Post by z3r0c00l »

Nothing close to that exists. You either take the risk of stocks or comparable, or you earn less. And that is talking 5 or 6% nominal, not real after taxes and inflation. In fact I would be impressed if stocks did this well over the next 10 years. Not shocked, but pretty happy about it. The best safe investments today return about zero after inflation.
Last edited by z3r0c00l on Fri Jun 18, 2021 4:56 pm, edited 1 time in total.
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tibbitts
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Re: Ideas to get 5-6%

Post by tibbitts »

ryanbohle wrote: Fri Jun 18, 2021 4:53 pm I am looking for ideas for an investment.   Im looking to get about 5 or 6 percent return   I’m willing to put this investment at more risk than a bond. But ideally less risk that the stock market.  Liquidity is of little concern. Does anything fitting these parameters exist out there?

Thank you in advance for your thoughts and time.
I'd guess that even at full stock market risk you'll have to be very luck to get 5-6% (I assume nominal... or do you mean real?) over the next year or even several years.
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ryanbohle
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Re: Ideas to get 5-6%

Post by ryanbohle »

z3r0c00l wrote: Fri Jun 18, 2021 4:55 pm Nothing close to that exists. You either take the risk of stocks or comparable, or you earn less. And that is talking 5 or 6% nominal, not real after taxes and inflation. In fact I would be impressed if stocks did this well over the next 10 years. Not shocked, but pretty happy about it.
No, before tax and inflation. My whole desire essentially is an investment that will cover taxes, inflation and it’s own fees. But not much more.
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Noobvestor
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Re: Ideas to get 5-6%

Post by Noobvestor »

Investing doesn't work like that. You take risk, and ideally over the long haul you get compensated for that risk. At this moment, it's not even possible to get a positive real return safely (TIPS are negative). Go with stocks and you might get 5-6% but a lot more risk and volatility too. Instead of targeting an number, I'd recommend figuring out what saving/spending/investing combination will best help you achieve your goals within your risk tolerance.
"In the absence of clarity, diversification is the only logical strategy" -= Larry Swedroe
Jags4186
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Re: Ideas to get 5-6%

Post by Jags4186 »

Peer-to-peer lending might be an option. Of course that comes with its own set of risks.
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ryanbohle
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Re: Ideas to get 5-6%

Post by ryanbohle »

Jags4186 wrote: Fri Jun 18, 2021 5:04 pm Peer-to-peer lending might be an option. Of course that comes with its own set of risks.
Can you tell me a bit more, or send a link I can read.
Jags4186
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Re: Ideas to get 5-6%

Post by Jags4186 »

ryanbohle wrote: Fri Jun 18, 2021 5:06 pm
Jags4186 wrote: Fri Jun 18, 2021 5:04 pm Peer-to-peer lending might be an option. Of course that comes with its own set of risks.
Can you tell me a bit more, or send a link I can read.
https://www.investopedia.com/articles/i ... bsites.asp
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HomerJ
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Re: Ideas to get 5-6%

Post by HomerJ »

ryanbohle wrote: Fri Jun 18, 2021 4:59 pm
z3r0c00l wrote: Fri Jun 18, 2021 4:55 pm Nothing close to that exists. You either take the risk of stocks or comparable, or you earn less. And that is talking 5 or 6% nominal, not real after taxes and inflation. In fact I would be impressed if stocks did this well over the next 10 years. Not shocked, but pretty happy about it.
No, before tax and inflation. My whole desire essentially is an investment that will cover taxes, inflation and it’s own fees. But not much more.
How high do you think inflation will be? How high are the fees and taxes?

5%-6% seems pretty high just to cover those things. Are you paying huge fees? Taxes should be less than 1%... Do you think inflation is going to be 4%-5% a year every year going forward?

$10,000 a year into ibonds will cover inflation, no fees, no taxes until you withdraw.

But you make 0% on ibonds.

But that's basically what you are asking. You are asking for something to return 5%-6% to cover taxes, inflation, and fees, leaving you with "not much more" after that.

Ibonds don't have inflation, taxes, or fees.
"The best tools available to us are shovels, not scalpels. Don't get carried away." - vanBogle59
desconhecido
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Re: Ideas to get 5-6%

Post by desconhecido »

WARNING non-BH investments follow


If you're willing to take the risk, you can go for junk debt. Examples:

ANGL: 4.1% (ETF)
BSA: 5.1%
HYDB: 4.0% (ETF)
PBI-B: 6.7%
SCE-G(preferred, not a note): 5.1%
SHYG: 4.8% (ETF)
CTDD: 6.4%
EP-C: 4.7%

For a list of exchange traded debt securities (alo preferred issues):
https://www.quantumonline.com

Even junk debt will likely carry a premium so not only is there interest rate risk, default risk, but call risk too.

There are lots of closed end funds with high distribution rates such as HTD, QQQX, and UTF. Buyer beware.
invest2bfree
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Re: Ideas to get 5-6%

Post by invest2bfree »

Invest in PGF which is financial preferred. Financials need these forTier1 capital.

Gives you 5% and when markets sell off it does sell off.
But it does recover very fast.

Only caveat is if we get another 2008 then this is bad place to be.

PGF was excellent place for the last 100 years except for 2007-2009 time frame where you lost 70%.
36% (IRA) - Individual LT Corporate Bonds , 33%(taxable) - schy, 33%(taxable) - SCHD Dividend Growth
DVMResident
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Re: Ideas to get 5-6%

Post by DVMResident »

How much money is this?

Credit card churning and sign up bonuses can get returns higher than 5% with very low risk but are limited in scale (few hundred per churn).
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ryanbohle
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Re: Ideas to get 5-6%

Post by ryanbohle »

DVMResident wrote: Fri Jun 18, 2021 5:31 pm How much money is this?

Credit card churning and sign up bonuses can get returns higher than 5% with very low risk but are limited in scale (few hundred per churn).
100K give or take a bit.
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ryanbohle
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Re: Ideas to get 5-6%

Post by ryanbohle »

invest2bfree wrote: Fri Jun 18, 2021 5:29 pm Invest in PGF which is financial preferred. Financials need these forTier1 capital.

Gives you 5% and when markets sell off it does sell off.
But it does recover very fast.

Only caveat is if we get another 2008 then this is bad place to be.

PGF was excellent place for the last 100 years except for 2007-2009 time frame where you lost 70%.
What is PGF?
investuntilimrich
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Re: Ideas to get 5-6%

Post by investuntilimrich »

A risk free way to get 5% or more

Move in with a relative or friend
Reuse ziplock bags
Turn off lights
Weigh bags of bulk vegetables like potatoes so you get extra for same price
Sleep in car instead of hotels
Get clothes second hand or at discount clothing stores
Drive a cheaper car to save insurance and taxes
Get used tires
Pick berries in fields if you can walk there without car mileage.
Ask neighbors if they have oversupply of vegetables from their gardens they may give them away if they do
Try to trade services rather than pay for services you cant avoid
Return tools you only need once
z3r0c00l
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Re: Ideas to get 5-6%

Post by z3r0c00l »

ryanbohle wrote: Fri Jun 18, 2021 5:06 pm
Jags4186 wrote: Fri Jun 18, 2021 5:04 pm Peer-to-peer lending might be an option. Of course that comes with its own set of risks.
Can you tell me a bit more, or send a link I can read.
Riskier than stocks, so that doesn't really match your request in the first post. (That is to say anyone willing to pay 5-6% on a P2P loan is a major default risk.)

The post just one upstream from here makes a good point. You can always do better by working harder and spending less than by some passive investment strategy.
70% Global Stocks / 30% Bonds
invest2bfree
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Re: Ideas to get 5-6%

Post by invest2bfree »

ryanbohle wrote: Fri Jun 18, 2021 5:37 pm
invest2bfree wrote: Fri Jun 18, 2021 5:29 pm Invest in PGF which is financial preferred. Financials need these forTier1 capital.

Gives you 5% and when markets sell off it does sell off.
But it does recover very fast.

Only caveat is if we get another 2008 then this is bad place to be.

PGF was excellent place for the last 100 years except for 2007-2009 time frame where you lost 70%.
What is PGF?
https://seekingalpha.com/symbol/PGF
36% (IRA) - Individual LT Corporate Bonds , 33%(taxable) - schy, 33%(taxable) - SCHD Dividend Growth
Topic Author
ryanbohle
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Re: Ideas to get 5-6%

Post by ryanbohle »

z3r0c00l wrote: Fri Jun 18, 2021 5:51 pm
ryanbohle wrote: Fri Jun 18, 2021 5:06 pm
Jags4186 wrote: Fri Jun 18, 2021 5:04 pm Peer-to-peer lending might be an option. Of course that comes with its own set of risks.
Can you tell me a bit more, or send a link I can read.
Riskier than stocks, so that doesn't really match your request in the first post. (That is to say anyone willing to pay 5-6% on a P2P loan is a major default risk.)

The post just one upstream from here makes a good point. You can always do better by working harder and spending less than by some passive investment strategy.
I read it. Not bad ideas. I take measures to live within my means.
Doctor Rhythm
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Re: Ideas to get 5-6%

Post by Doctor Rhythm »

Since you’re relatively new here, I’ll just add that you’re wandering away from the village and into the forest with peer-to-peer lending. Not saying it’s bad - but it’s outside of the comfort area of most investors (whether Bogleheads or not). It also strays into the realm of investments you need research, as opposed to “I’m at Vanguard, this is Vanguard’s main total stock fund, it’s got a low ER. Done!”

Like most people here, I prefer to take risk by changing allocation (more equity) rather than by reducing diversification through concentrated bets.
Last edited by Doctor Rhythm on Fri Jun 18, 2021 6:08 pm, edited 1 time in total.
finite_difference
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Re: Ideas to get 5-6%

Post by finite_difference »

ryanbohle wrote: Fri Jun 18, 2021 4:53 pm I am looking for ideas for an investment.   Im looking to get about 5 or 6 percent return   I’m willing to put this investment at more risk than a bond. But ideally less risk that the stock market.  Liquidity is of little concern. Does anything fitting these parameters exist out there?

(5-6 before tax or accounting for inflation. My whole desire essentially is an investment that will cover taxes, inflation and it’s own fees. But not much more.)

Thank you in advance for your thoughts and time.
So that’s about 3-4% real return.

I would go with Wellington or Vanguard Balanced Fund. Those have more risk than pure bond but less risk than pure stock.
Last edited by finite_difference on Fri Jun 18, 2021 6:06 pm, edited 1 time in total.
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Topic Author
ryanbohle
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Re: Ideas to get 5-6%

Post by ryanbohle »

Doctor Rhythm wrote: Fri Jun 18, 2021 6:05 pm Since you’re relatively new here, I’ll just add that you’re wandering away from the village and into the forest with peer-to-peer lending. Not saying it’s bad - but it’s outside of the comfort area of most investors (whether Bogleheads or not). It also strays into the realm of investments you need research, as opposed to “I’m at Vanguard, this is Vanguard’s main total stock fund, it’s got a low ER. Done!”

Like most people here, I prefer to take risk by changing allocation (more equity) rather than by reducing diversification through concentrated bets.
How many years do I have to be here before I stop getting “since you’re new here” replies. Peer to peer is too risky, agree. But I still appreciate the outside the box thinking.

I don’t really want to be more than 80% in the stock market. But I also am willing to put the other 20% at more risk than bonds. (But I definitely appreciated the junk bonds post above).

I’d love to invest in something that gets better returns than bonds but is safer than and doesn’t really correlate with the stock market. Maybe that something doesn’t exist, but I don’t think it’s an unreasonable question or thought exercise.
NabSh
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Re: Ideas to get 5-6%

Post by NabSh »

Are looking for 5-6% return to grow and re-invest OR use for some sort monthly or annual expense?
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ryanbohle
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Re: Ideas to get 5-6%

Post by ryanbohle »

NabSh wrote: Fri Jun 18, 2021 6:16 pm Are looking for 5-6% return to grow and re-invest OR use for some sort monthly or annual expense?
Long term would actually be ideal. And liquidity is of little concern. And yes, would reinvest returns.
Last edited by ryanbohle on Fri Jun 18, 2021 6:19 pm, edited 1 time in total.
qwertyjazz
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Re: Ideas to get 5-6%

Post by qwertyjazz »

If you want above market returns, you have to take above market risk. You can use leverage on any market risk to get there.
Or you have to provide expertise or work to earn that return. Open a local business etc etc
What skill sets do you posses that can help you with local investments?
G.E. Box "All models are wrong, but some are useful."
Doctor Rhythm
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Re: Ideas to get 5-6%

Post by Doctor Rhythm »

ryanbohle wrote: Fri Jun 18, 2021 6:13 pm
Doctor Rhythm wrote: Fri Jun 18, 2021 6:05 pm Since you’re relatively new here, I’ll just add that you’re wandering away from the village and into the forest with peer-to-peer lending. Not saying it’s bad - but it’s outside of the comfort area of most investors (whether Bogleheads or not). It also strays into the realm of investments you need research, as opposed to “I’m at Vanguard, this is Vanguard’s main total stock fund, it’s got a low ER. Done!”

Like most people here, I prefer to take risk by changing allocation (more equity) rather than by reducing diversification through concentrated bets.
How many years do I have to be here before I stop getting “since you’re new here” replies. Peer to peer is too risky, agree. But I still appreciate the outside the box thinking.

I don’t really want to be more than 80% in the stock market. But I also am willing to put the other 20% at more risk than bonds. (But I definitely appreciated the junk bonds post above).

I’d love to invest in something that gets better returns than bonds but is safer than and doesn’t really correlate with the stock market. Maybe that something doesn’t exist, but I don’t think it’s an unreasonable question or thought exercise.
Apologies - I didn’t check your subscription date, just the relatively low post count. Like I said, peer to peer isn’t necessarily wrong for you, but it’s probably wrong for most people and doesn’t fit well into the Boglehead approach. Thus, it and a lot of other non-traditional investments are going to be viewed with skeptic here.
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ryanbohle
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Re: Ideas to get 5-6%

Post by ryanbohle »

Doctor Rhythm wrote: Fri Jun 18, 2021 6:22 pm
ryanbohle wrote: Fri Jun 18, 2021 6:13 pm
Doctor Rhythm wrote: Fri Jun 18, 2021 6:05 pm Since you’re relatively new here, I’ll just add that you’re wandering away from the village and into the forest with peer-to-peer lending. Not saying it’s bad - but it’s outside of the comfort area of most investors (whether Bogleheads or not). It also strays into the realm of investments you need research, as opposed to “I’m at Vanguard, this is Vanguard’s main total stock fund, it’s got a low ER. Done!”

Like most people here, I prefer to take risk by changing allocation (more equity) rather than by reducing diversification through concentrated bets.
How many years do I have to be here before I stop getting “since you’re new here” replies. Peer to peer is too risky, agree. But I still appreciate the outside the box thinking.

I don’t really want to be more than 80% in the stock market. But I also am willing to put the other 20% at more risk than bonds. (But I definitely appreciated the junk bonds post above).

I’d love to invest in something that gets better returns than bonds but is safer than and doesn’t really correlate with the stock market. Maybe that something doesn’t exist, but I don’t think it’s an unreasonable question or thought exercise.
Apologies - I didn’t check your subscription date, just the relatively low post count. Like I said, peer to peer isn’t necessarily wrong for you, but it’s probably wrong for most people and doesn’t fit well into the Boglehead approach. Thus, it and a lot of other non-traditional investments are going to be viewed with skeptic here.
And the skepticism is valued. At least by me. And also, would never put this kinda ml way into an investment on a whim. Any decisions I make will be well researched. You just don’t know what you don’t know.
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JonnyDVM
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Re: Ideas to get 5-6%

Post by JonnyDVM »

[Reply to removed content removed by moderator oldcomputerguy]

I would tell you to buy US total market. If you don’t want to do that, I would consider crowd funded real estate. That should generate the return you are seeking as an alternative to the market.
I’d trade it all for a little more | -C Montgomery Burns
fyre4ce
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Re: Ideas to get 5-6%

Post by fyre4ce »

ryanbohle wrote: Fri Jun 18, 2021 5:36 pm
DVMResident wrote: Fri Jun 18, 2021 5:31 pm How much money is this?

Credit card churning and sign up bonuses can get returns higher than 5% with very low risk but are limited in scale (few hundred per churn).
100K give or take a bit.
You can almost certainly make $5k in a year with combined credit card, bank, and brokerage bonuses with $100k of capital. Plus you can get some interest/yield from bonds on top of that. In years 2+ your returns will probably be less, as you'll run out of financial institutions to pay these bonuses. But it would be "guaranteed".
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ryanbohle
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Re: Ideas to get 5-6%

Post by ryanbohle »

JonnyDVM wrote: Fri Jun 18, 2021 6:27 pm
[Reply to removed content removed by moderator oldcomputerguy]

I would tell you to buy US total market. If you don’t want to do that, I would consider crowd funded real estate. That should generate the return you are seeking as an alternative to the market.
About 60% of my portfolio is in VTI or VINIX. another 20 in VXUS (total international). It’s the last 20% I’m toying with. (Currently in bonds).

Crowd funded real estate is actually highest on my “differential” so to speak. That or covered calls.
Last edited by ryanbohle on Fri Jun 18, 2021 6:38 pm, edited 2 times in total.
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ryanbohle
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Re: Ideas to get 5-6%

Post by ryanbohle »

fyre4ce wrote: Fri Jun 18, 2021 6:29 pm
ryanbohle wrote: Fri Jun 18, 2021 5:36 pm
DVMResident wrote: Fri Jun 18, 2021 5:31 pm How much money is this?

Credit card churning and sign up bonuses can get returns higher than 5% with very low risk but are limited in scale (few hundred per churn).
100K give or take a bit.
You can almost certainly make $5k in a year with combined credit card, bank, and brokerage bonuses with $100k of capital. Plus you can get some interest/yield from bonds on top of that. In years 2+ your returns will probably be less, as you'll run out of financial institutions to pay these bonuses. But it would be "guaranteed".

Food for thought :)
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Beensabu
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Re: Ideas to get 5-6%

Post by Beensabu »

ryanbohle wrote: Fri Jun 18, 2021 6:13 pm How many years do I have to be here before I stop getting “since you’re new here” replies.
That's just their way of telling you they're being kinder than they would be otherwise. Take it while it lasts.
"The only thing that makes life possible is permanent, intolerable uncertainty; not knowing what comes next." ~Ursula LeGuin
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ryanbohle
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Re: Ideas to get 5-6%

Post by ryanbohle »

Beensabu wrote: Fri Jun 18, 2021 6:51 pm
ryanbohle wrote: Fri Jun 18, 2021 6:13 pm How many years do I have to be here before I stop getting “since you’re new here” replies.
That's just their way of telling you they're being kinder than they would be otherwise. Take it while it lasts.
It would probably be more fun to hear “what they would say otherwise”. :)
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anon_investor
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Re: Ideas to get 5-6%

Post by anon_investor »

ryanbohle wrote: Fri Jun 18, 2021 6:53 pm
Beensabu wrote: Fri Jun 18, 2021 6:51 pm
ryanbohle wrote: Fri Jun 18, 2021 6:13 pm How many years do I have to be here before I stop getting “since you’re new here” replies.
That's just their way of telling you they're being kinder than they would be otherwise. Take it while it lasts.
It would probably be more fun to hear “what they would say otherwise”. :)
Keep it simple, VTSAX and chill. Long term you'll probably beat 5-6%.
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ryanbohle
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Re: Ideas to get 5-6%

Post by ryanbohle »

anon_investor wrote: Fri Jun 18, 2021 7:02 pm
ryanbohle wrote: Fri Jun 18, 2021 6:53 pm
Beensabu wrote: Fri Jun 18, 2021 6:51 pm
ryanbohle wrote: Fri Jun 18, 2021 6:13 pm How many years do I have to be here before I stop getting “since you’re new here” replies.
That's just their way of telling you they're being kinder than they would be otherwise. Take it while it lasts.
It would probably be more fun to hear “what they would say otherwise”. :)
Keep it simple, VTSAX and chill. Long term you'll probably beat 5-6%.
About 60% of my portfolio is in VTI or VINIX. another 20 in VXUS (total international). It’s the last 20% I’m toying with. (Currently in bonds).
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anon_investor
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Re: Ideas to get 5-6%

Post by anon_investor »

ryanbohle wrote: Fri Jun 18, 2021 7:03 pm
anon_investor wrote: Fri Jun 18, 2021 7:02 pm
ryanbohle wrote: Fri Jun 18, 2021 6:53 pm
Beensabu wrote: Fri Jun 18, 2021 6:51 pm
ryanbohle wrote: Fri Jun 18, 2021 6:13 pm How many years do I have to be here before I stop getting “since you’re new here” replies.
That's just their way of telling you they're being kinder than they would be otherwise. Take it while it lasts.
It would probably be more fun to hear “what they would say otherwise”. :)
Keep it simple, VTSAX and chill. Long term you'll probably beat 5-6%.
About 60% of my portfolio is in VTI or VINIX. another 20 in VXUS (total international). It’s the last 20% I’m toying with. (Currently in bonds).
There is nothing safe that gets 5-6%. VTI will likely do better for less risk than many of the suggestions. Keep it simple.
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AerialWombat
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Re: Ideas to get 5-6%

Post by AerialWombat »

.....
Last edited by AerialWombat on Fri Jun 18, 2021 7:18 pm, edited 1 time in total.
This post is a work of fiction. Any similarity to real financial advice is purely coincidental.
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Beensabu
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Re: Ideas to get 5-6%

Post by Beensabu »

ryanbohle wrote: Fri Jun 18, 2021 6:53 pm
Beensabu wrote: Fri Jun 18, 2021 6:51 pm
ryanbohle wrote: Fri Jun 18, 2021 6:13 pm How many years do I have to be here before I stop getting “since you’re new here” replies.
That's just their way of telling you they're being kinder than they would be otherwise. Take it while it lasts.
It would probably be more fun to hear “what they would say otherwise”. :)
LOL. Probably something like "P2P lending? Safer than equities for a long-term investment?! 5-6% nominal over the next 10 years on anything? Where?! Where is it? Tell me! I too want a unicorn pony..." Only far more eloquently than that. Folks here don't even like Vanguard's high yield bond fund for the most part, and that's about as far from "junk" in high yield as you can get.

It is fun. There are some extremely articulate people here, with very well reasoned opinions. :D
"The only thing that makes life possible is permanent, intolerable uncertainty; not knowing what comes next." ~Ursula LeGuin
Zeno
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Re: Ideas to get 5-6%

Post by Zeno »

ryanbohle wrote: Fri Jun 18, 2021 4:53 pm I am looking for ideas for an investment.   Im looking to get about 5 or 6 percent return   I’m willing to put this investment at more risk than a bond. But ideally less risk that the stock market.  Liquidity is of little concern. Does anything fitting these parameters exist out there?

(5-6 before tax or accounting for inflation. My whole desire essentially is an investment that will cover taxes, inflation and it’s own fees. But not much more.)

Thank you in advance for your thoughts and time.
*Following

Hopefully somebody posts the answer so I can file my papers this weekend.
ChiKid24
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Re: Ideas to get 5-6%

Post by ChiKid24 »

OP, since some risk is Ok and you want diversification away from stocks, I'd look into syndicated real estate deals. I'd stay away from the crowd funded stuff as the fees taken by the platforms really impact the returns.

I've invested in a few different syndicators and am averaging 12-15%. You need to be an accredited investor, and do your homework. Most of these investments are private placements so don't have the regulatory oversight of the SEC. But you can interview and diligence a few different ones, talk to others for referrals, and only take deals you are comfortable taking.

I recognize this isn't the Bogleheads way, but its another option that meets the criteria you are asking for. My personal belief is that real estate is a less efficient market than stocks or bonds. Meaning it is possible to extract higher than market returns if you know what you're doing. I don't, so I invest in syndicators that study particular market segments (like Southeastern US workforce housing as an example), have a presence on the ground, and generate economies of scale to boost returns.
Zeno
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Re: Ideas to get 5-6%

Post by Zeno »

ChiKid24 wrote: Fri Jun 18, 2021 7:20 pm OP, since some risk is Ok and you want diversification away from stocks, I'd look into syndicated real estate deals. I'd stay away from the crowd funded stuff as the fees taken by the platforms really impact the returns.

I've invested in a few different syndicators and am averaging 12-15%. You need to be an accredited investor, and do your homework. Most of these investments are private placements so don't have the regulatory oversight of the SEC. But you can interview and diligence a few different ones, talk to others for referrals, and only take deals you are comfortable taking.

I recognize this isn't the Bogleheads way, but its another option that meets the criteria you are asking for. My personal belief is that real estate is a less efficient market than stocks or bonds. Meaning it is possible to extract higher than market returns if you know what you're doing. I don't, so I invest in syndicators that study particular market segments (like Southeastern US workforce housing as an example), have a presence on the ground, and generate economies of scale to boost returns.
How do you select the syndicators that provide 12-15% returns?

Have you ever selected a syndicator that didn't deliver those returns?
Topic Author
ryanbohle
Posts: 154
Joined: Tue Oct 29, 2019 9:20 pm

Re: Ideas to get 5-6%

Post by ryanbohle »

ChiKid24 wrote: Fri Jun 18, 2021 7:20 pm OP, since some risk is Ok and you want diversification away from stocks, I'd look into syndicated real estate deals. I'd stay away from the crowd funded stuff as the fees taken by the platforms really impact the returns.

I've invested in a few different syndicators and am averaging 12-15%. You need to be an accredited investor, and do your homework. Most of these investments are private placements so don't have the regulatory oversight of the SEC. But you can interview and diligence a few different ones, talk to others for referrals, and only take deals you are comfortable taking.

I recognize this isn't the Bogleheads way, but its another option that meets the criteria you are asking for. My personal belief is that real estate is a less efficient market than stocks or bonds. Meaning it is possible to extract higher than market returns if you know what you're doing. I don't, so I invest in syndicators that study particular market segments (like Southeastern US workforce housing as an example), have a presence on the ground, and generate economies of scale to boost returns.
Thank you for your thoughts and time. I am an accredited investor. I’ve almost pulled the trigger on the DLP Capital lending fund so many times. I’m not sure why I haven’t.

https://dlpcapitalpartners.com/dlp-lending-fund/
Zeno
Posts: 1042
Joined: Wed Sep 12, 2018 10:44 am

Re: Ideas to get 5-6%

Post by Zeno »

ryanbohle wrote: Fri Jun 18, 2021 7:35 pm
ChiKid24 wrote: Fri Jun 18, 2021 7:20 pm OP, since some risk is Ok and you want diversification away from stocks, I'd look into syndicated real estate deals. I'd stay away from the crowd funded stuff as the fees taken by the platforms really impact the returns.

I've invested in a few different syndicators and am averaging 12-15%. You need to be an accredited investor, and do your homework. Most of these investments are private placements so don't have the regulatory oversight of the SEC. But you can interview and diligence a few different ones, talk to others for referrals, and only take deals you are comfortable taking.

I recognize this isn't the Bogleheads way, but its another option that meets the criteria you are asking for. My personal belief is that real estate is a less efficient market than stocks or bonds. Meaning it is possible to extract higher than market returns if you know what you're doing. I don't, so I invest in syndicators that study particular market segments (like Southeastern US workforce housing as an example), have a presence on the ground, and generate economies of scale to boost returns.
Thank you for your thoughts and time. I am an accredited investor. I’ve almost pulled the trigger on the DLP Capital lending fund so many times. I’m not sure why I haven’t.

https://dlpcapitalpartners.com/dlp-lending-fund/
Why haven't you? Looks like an answer is in front of you, maybe.
Topic Author
ryanbohle
Posts: 154
Joined: Tue Oct 29, 2019 9:20 pm

Re: Ideas to get 5-6%

Post by ryanbohle »

WyomingFIRE wrote: Fri Jun 18, 2021 7:40 pm
ryanbohle wrote: Fri Jun 18, 2021 7:35 pm
ChiKid24 wrote: Fri Jun 18, 2021 7:20 pm OP, since some risk is Ok and you want diversification away from stocks, I'd look into syndicated real estate deals. I'd stay away from the crowd funded stuff as the fees taken by the platforms really impact the returns.

I've invested in a few different syndicators and am averaging 12-15%. You need to be an accredited investor, and do your homework. Most of these investments are private placements so don't have the regulatory oversight of the SEC. But you can interview and diligence a few different ones, talk to others for referrals, and only take deals you are comfortable taking.

I recognize this isn't the Bogleheads way, but its another option that meets the criteria you are asking for. My personal belief is that real estate is a less efficient market than stocks or bonds. Meaning it is possible to extract higher than market returns if you know what you're doing. I don't, so I invest in syndicators that study particular market segments (like Southeastern US workforce housing as an example), have a presence on the ground, and generate economies of scale to boost returns.
Thank you for your thoughts and time. I am an accredited investor. I’ve almost pulled the trigger on the DLP Capital lending fund so many times. I’m not sure why I haven’t.

https://dlpcapitalpartners.com/dlp-lending-fund/
Why haven't you? Looks like an answer is in front of you, maybe.
Several reasons
1. I’m a wuss.
2. I feel the need to better understand the investment
3. I don’t have the cash. I need my year end bonus and next years tax refund, otherwise I’d have to sell some stock and pay taxes on the gains.
4. I’m a wuss
Jags4186
Posts: 8198
Joined: Wed Jun 18, 2014 7:12 pm

Re: Ideas to get 5-6%

Post by Jags4186 »

OP, I think the trouble you’re going to find is that the only truly efficient markets are the bond and equity markets. Everything else is up in the air. 10 year treasuries are only paying 1.45%. And equities historically have returned about 10%. Treasuries are truly the only “guaranteed” return you’ll ever get. There is no reliable way to split the baby besides balancing those two asset classes and that assumes equities continue to perform as they have. Everything else is a crap shoot.
Zeno
Posts: 1042
Joined: Wed Sep 12, 2018 10:44 am

Re: Ideas to get 5-6%

Post by Zeno »

ryanbohle wrote: Fri Jun 18, 2021 7:45 pm
WyomingFIRE wrote: Fri Jun 18, 2021 7:40 pm
ryanbohle wrote: Fri Jun 18, 2021 7:35 pm
ChiKid24 wrote: Fri Jun 18, 2021 7:20 pm OP, since some risk is Ok and you want diversification away from stocks, I'd look into syndicated real estate deals. I'd stay away from the crowd funded stuff as the fees taken by the platforms really impact the returns.

I've invested in a few different syndicators and am averaging 12-15%. You need to be an accredited investor, and do your homework. Most of these investments are private placements so don't have the regulatory oversight of the SEC. But you can interview and diligence a few different ones, talk to others for referrals, and only take deals you are comfortable taking.

I recognize this isn't the Bogleheads way, but its another option that meets the criteria you are asking for. My personal belief is that real estate is a less efficient market than stocks or bonds. Meaning it is possible to extract higher than market returns if you know what you're doing. I don't, so I invest in syndicators that study particular market segments (like Southeastern US workforce housing as an example), have a presence on the ground, and generate economies of scale to boost returns.
Thank you for your thoughts and time. I am an accredited investor. I’ve almost pulled the trigger on the DLP Capital lending fund so many times. I’m not sure why I haven’t.

https://dlpcapitalpartners.com/dlp-lending-fund/
Why haven't you? Looks like an answer is in front of you, maybe.
Several reasons
1. I’m a wuss.
2. I feel the need to better understand the investment
3. I don’t have the cash. I need my year end bonus and next years tax refund, otherwise I’d have to sell some stock and pay taxes on the gains.
4. I’m a wuss
You are too modest.

I'd say you are a wise, sage, BH investor
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HomerJ
Posts: 21281
Joined: Fri Jun 06, 2008 12:50 pm

Re: Ideas to get 5-6%

Post by HomerJ »

WyomingFIRE wrote: Fri Jun 18, 2021 7:50 pm
ryanbohle wrote: Fri Jun 18, 2021 7:45 pm
WyomingFIRE wrote: Fri Jun 18, 2021 7:40 pm
ryanbohle wrote: Fri Jun 18, 2021 7:35 pm
ChiKid24 wrote: Fri Jun 18, 2021 7:20 pm OP, since some risk is Ok and you want diversification away from stocks, I'd look into syndicated real estate deals. I'd stay away from the crowd funded stuff as the fees taken by the platforms really impact the returns.

I've invested in a few different syndicators and am averaging 12-15%. You need to be an accredited investor, and do your homework. Most of these investments are private placements so don't have the regulatory oversight of the SEC. But you can interview and diligence a few different ones, talk to others for referrals, and only take deals you are comfortable taking.

I recognize this isn't the Bogleheads way, but its another option that meets the criteria you are asking for. My personal belief is that real estate is a less efficient market than stocks or bonds. Meaning it is possible to extract higher than market returns if you know what you're doing. I don't, so I invest in syndicators that study particular market segments (like Southeastern US workforce housing as an example), have a presence on the ground, and generate economies of scale to boost returns.
Thank you for your thoughts and time. I am an accredited investor. I’ve almost pulled the trigger on the DLP Capital lending fund so many times. I’m not sure why I haven’t.

https://dlpcapitalpartners.com/dlp-lending-fund/
Why haven't you? Looks like an answer is in front of you, maybe.
Several reasons
1. I’m a wuss.
2. I feel the need to better understand the investment
3. I don’t have the cash. I need my year end bonus and next years tax refund, otherwise I’d have to sell some stock and pay taxes on the gains.
4. I’m a wuss
You are too modest.

I'd say you are a wise, sage, BH investor
Agreed. if you don't understand the investment, you would be a fool to invest in it.

1. and 4. should be "I'm not a fool".
"The best tools available to us are shovels, not scalpels. Don't get carried away." - vanBogle59
Zeno
Posts: 1042
Joined: Wed Sep 12, 2018 10:44 am

Re: Ideas to get 5-6%

Post by Zeno »

This is how I'm endeavoring to answer your question:

Work a few more years and hunker down. We are targeting 50X; SWR between 2-2.5%. I'm an old, bald squirrel, literally squirreling away future investments consistent with our AA.

And, quite frankly, I have more faith in squirrels than all the talking heads on CNBC.
User avatar
dziuniek
Posts: 1402
Joined: Mon Jul 23, 2012 2:54 pm

Re: Ideas to get 5-6%

Post by dziuniek »

ETV comes to mind.
Get rich or die tryin'
Topic Author
ryanbohle
Posts: 154
Joined: Tue Oct 29, 2019 9:20 pm

Re: Ideas to get 5-6%

Post by ryanbohle »

HomerJ wrote: Fri Jun 18, 2021 7:55 pm
WyomingFIRE wrote: Fri Jun 18, 2021 7:50 pm
ryanbohle wrote: Fri Jun 18, 2021 7:45 pm
WyomingFIRE wrote: Fri Jun 18, 2021 7:40 pm
ryanbohle wrote: Fri Jun 18, 2021 7:35 pm

Thank you for your thoughts and time. I am an accredited investor. I’ve almost pulled the trigger on the DLP Capital lending fund so many times. I’m not sure why I haven’t.

https://dlpcapitalpartners.com/dlp-lending-fund/
Why haven't you? Looks like an answer is in front of you, maybe.
Several reasons
1. I’m a wuss.
2. I feel the need to better understand the investment
3. I don’t have the cash. I need my year end bonus and next years tax refund, otherwise I’d have to sell some stock and pay taxes on the gains.
4. I’m a wuss
You are too modest.

I'd say you are a wise, sage, BH investor
Agreed. if you don't understand the investment, you would be a fool to invest in it.

1. and 4. should be "I'm not a fool".
Just to clarify, because I’d be a fool to invest in it at all, or just a fool to make the investment before I’m properly educated and informed.

(Not meant to be contentious, I am honestly unclear as you what you meant)
Last edited by ryanbohle on Fri Jun 18, 2021 8:21 pm, edited 1 time in total.
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Beensabu
Posts: 5657
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Re: Ideas to get 5-6%

Post by Beensabu »

Damn, you're good. A+ for effort. Wrong crowd.
"The only thing that makes life possible is permanent, intolerable uncertainty; not knowing what comes next." ~Ursula LeGuin
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