Yes, with the following caveats:Is there anything out there that has a 10+ year tract record of 5% or higher return either paid out monthly or quarterly, I do not want to touch my initial investment.
Thank you so much for any info!
1. You're looking at dollar denominated assets
2. "I don't want to touch my initial investment" means that you want to have a reasonable chance that your initial principal will still be around after the ten year period - NOT - that the value of your investment will never fall below the value of your initial principal. It also assumes that you're interested in nominal values (that is, unadjusted for inflation)
3. "Paid out" includes sales or withdraws that you make from the portfolio
4. You accept that there is still a certain level of risk to anything you invest in
If you go to PortfolioVisualizer.com click on their Monte Carlo simulation tab, you'll see that a simple 60/40 portfolio modeled over a ten year period supports a 5% withdraw rate (from the value of the funds at the time of the withdraw, and not at the time of the initial investment) without ending below the value of the initial investment approximately 84-85% of the time. This exceeds 90% if you extend it to a 20 year period.
There are plenty of fixed annuity options if you're willing to accept that you cannot touch your initial investment until the end of the lock up period.
Now, if you want something that provides a guaranteed coupon (again, with a level of risk) and lets you sell your investment at any time, there are plenty of AAA-A1 rated corporate bonds with a maturity rate of 10+ years, a coupon rate of 5%+, and a yield to maturity of 5%+.
That said, keep in mind that none of these options account for inflation.
Statistics: Posted by MH2 — Fri Apr 12, 2024 4:41 am — Replies 1 — Views 140
