How would you invest €50k right now?
- Thread starter Blackside
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Oh 2021. Got it
But guy who started thread said he wanted stable income and long term.
Long term is not 2 years.
very interesting. could you please elaborate a bit further? because generally, annual stock returns is said to be around 7% . how can Guggenheim Strategic Opportunities Fund have a dividend yield of around 13% ? it sounds " to good to be true " . is the dividend paid out from the value of the funds itself? ( i mean from the 15$ share price) ? just want to understand it better. thank you in advance.
It's true, you should read the fund description. Obviously it's not without risk but I think a very solid option for regular income.
https://www.guggenheiminvestments.com/cef/fund/gof/distributions
Last edited: Aug 5, 2023
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@JohnnyDoe ”“ Your #1 Source for Guidance in Different Offshore Fields
Total return is what matters, not only dividend yield.
GOF vs SCHD vs S&P500 dividend reinvested not inflation adjusted since 2012.
GOF clearly underperformed over the period however it is indeed great for income.
Kind to elaborate what this is ?
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ETF
JEPI-JPMorgan Equity Premium Income ETF
SVOL- Simplify Volatility Premium ETF
JPIE-JPMorgan Income ETF
GOF-Guggenheim Strategic Opportunities Fund
This (#29 of @jafo ) is the most important post in this entire thread. Sadly, people never pay attention to warnings like this.
Investing today in the stock markets of most developed countries means investing in overvalued equity when taking historical metrics into account.
@OP: Not enough information to give advices.
"low-risk (long-term)"
how long (10y, 20y? ...) and which goal (distributing, accumlating? for you or inheritance for your children)?
"anything to do with extreme volatility like crypto."
What is exactly your risk acceptance? Which max drawdown do you accept?
"ETF's? Buying franchises or smaller established offline businesses?"
Do you want a lazy investment or active? Obviously if it's active you can except higher profits.
If it's passive (ETFs) with stocks/bonds/... as general rules:
1/ first step: limit fees with bank/brokers. low trading fees, no custody fees... (i.e. Interactivebrokers)
2/ second step: depending your country of residence, try to choose the tax efficient ETF.
For instance, if your country is capital gains tax free, choose an accumulating ETFs.
If you live as NHR in Portugal, choose distributing ETFs.
Moreover, if your country of residence has no tax treaty with the US, it's better to have an UCITS accumulating ETF (if not witholding tax of 30% by default).
3/ Most of active portfolio are beaten in the long term by a simple passive portfolio.
4/ Active ETF investment means fees paid to the management.
5/ Active ETF (such as JEPI...) are very young with no long term feedback.
6/ Higher returns generally (always) means more risks.
7/ Building a diversified portfolio is the best mean to decrease your max drawdown:
just an example:
x% of WORLD stock ETF (IWDA... JEPI if you want)
x% of BONDS (ETFS, direct bonds [see tax efficiency])
x% of MONETARY (i.e. currently €STER 3.6% / 5.3% Overnight US fed rates....)
x% of REAL ESTATE (direct, REITS...)
x% of CRYPTO
x% of .....
Percentages depend on your max drawdown acceptance.
But it's very complicated (nearly impossible) to find the good entry point.
I like to read old threads on forum investors. 5 years or even 10 years ago, you find good investors who said that markets were already overvalued.
Obviously, if your entry point is in 2000 or 2007 (100% stocks)... cry&¤.
Use a Dollar-Cost Averaging (DCA) strategy to reduce the risk.
Last edited: Aug 5, 2023
"low-risk (long-term)"
how long (10y, 20y? ...) and which goal (distributing, accumlating? for you or inheritance for your children)?
"anything to do with extreme volatility like crypto."
What is exactly your risk acceptance? Which max drawdown do you accept?
"ETF's? Buying franchises or smaller established offline businesses?"
Do you want a lazy investment or active? Obviously if it's active you can except higher profits.
If it's passive (ETFs) with stocks/bonds/... as general rules:
1/ first step: limit fees with bank/brokers. low trading fees, no custody fees... (i.e. Interactivebrokers)
2/ second step: depending your country of residence, try to choose the tax efficient ETF.
For instance, if your country is capital gains tax free, choose an accumulating ETFs.
If you live as NHR in Portugal, choose distributing ETFs.
Moreover, if your country of residence has no tax treaty with the US, it's better to have an UCITS accumulating ETF (if not witholding tax of 30% by default).
3/ Most of active portfolio are beaten in the long term by a simple passive portfolio.
4/ Active ETF investment means fees paid to the management.
5/ Active ETF (such as JEPI...) are very young with no long term feedback.
6/ Higher returns generally (always) means more risks.
7/ Building a diversified portfolio is the best mean to decrease your max drawdown:
just an example:
x% of WORLD stock ETF (IWDA... JEPI if you want)
x% of BONDS (ETFS, direct bonds [see tax efficiency])
x% of MONETARY (i.e. currently €STER 3.6% / 5.3% Overnight US fed rates....)
x% of REAL ESTATE (direct, REITS...)
x% of CRYPTO
x% of .....
Percentages depend on your max drawdown acceptance.
Yes, GAFAM especially which have single-handedly boosted results since the beginning of the year.
But it's very complicated (nearly impossible) to find the good entry point.
I like to read old threads on forum investors. 5 years or even 10 years ago, you find good investors who said that markets were already overvalued.
Obviously, if your entry point is in 2000 or 2007 (100% stocks)... cry&¤.
Use a Dollar-Cost Averaging (DCA) strategy to reduce the risk.
Last edited: Aug 5, 2023
Some suggestions for the income part of a balanced portfolio.
Obviously a good portfolio should not consist only of income instruments, so you should also add some broad market ETFs, commodities, crypto etc.
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@JohnnyDoe ”“ Your #1 Source for Guidance in Different Offshore Fields
True, however over decades you can regularly find in the news (with right arguments) that stock markets are overvalued.
Markets could indeed tank (and not recover for a long period) tomorrow, next month or in 2030... who knows?
"Past performance is no guarantee of future results." goes both ways too.
At the end of the day, when you estimate you have "done your own research" and "due diligence" extensively enough, you may decide that "time in the market beats timing the market". To each his quotes.
Unless you know a reliable fortune teller, investments are matters of substantiated conviction closely linked to your degree of risk aversion.
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