If you are seeking investment help, look at the video here on my services. If you are seeking a different approach to managing your assets you have landed at the right spot. I am a fee only advisor registered in the State of Maryland, charge less than half the going rate for investment management, and seek to teach individuals how to manage their own assets using low cost indexed exchange traded funds. Please call or email me if interested in further details. My website is at http://www.rwinvestmentstrategies.com. If you are new to investing, take a look at the "DIY Investor Newbie" posts here by typing "newbie" in the search box above to the left. These take you through the basics of what you need to know in getting started on doing your own investing.
Tuesday, August 10, 2010
Five years ago the block barbecue discussion du jour was how much the house prices on the block had risen and how everybody was going to be rich. Today, assuming your neighborhood isn't sprinkled with foreclosures, the discussion has morphed into whether we will keep our jobs and how low yields are on our investments. So that you can keep up with the discussion and aren't forced into playing guitar hero in the basement with the kids, here is a listing of yields on various instruments along with some associated exchange traded funds. Nothing here is recommended. Some stuff is risky. In fact, a basic tenet of investing is that, if you are getting extra yield, you are taking on extra risk. The auction rate securities crowd never really got this. See your advisor or get an MBA before touching these investments! The framework here was inspired by Kiplinger's "Pocket Extra Income" p. 31 in the September issue.
Real Estate Investment Trusts 8.21% REM
Utility Stocks 4.14% XLU
Dividend-Paying U.S. Stocks 3.64% DVY
10 year U.S. Treasury Note 2.81%
Money Market Funds .04%
High Yield Corporate Bonds 10.8% JNK
Foreign Bonds 3.7% (yield reported by Kiplingers) IBND
Emerging-Market Bonds 5.15% EMB
Investment Grade Corporate Bonds 5.44% LQD
Investment Grade Municipal Bonds 3.6% MUB