Retirement: 3 Overlooked Asset Classes For Up To 12% Yield
Retirement investing is today very different than it used to be.
Traditional bonds and stocks simply aren't enough anymore.
We look at lesser-known asset classes that we use to generate 6%-12% yield in today's yiedless world.
Co-produced with Mark Roussin
The idea of retirement in 2020 looks much different than it has in the past. Today more than ever, it's extremely important that investors focus more on their investments than in any time in recent history. In past decades, those planning for retirement had a sizable investment in fixed income instruments, reason being that government bonds, which are viewed as the safest investments, were paying upward of 8% yields. However, in today’s ultra-low yield world, retirement investing is entirely different from the past.
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With rates sitting at these historically low levels, retirees must look elsewhere to earn their much-needed retirement income.
Stocks (SPY)?
Nope. The yields are not any better:
Data by YCharts
Because traditional bonds and stocks do not produce enough income to satisfy the needs of retirees, we must look elsewhere. More specifically, we must look for less crowded sectors that are overlooked and out of investor's attention.
This is exactly what we do at High Yield Landlord. Our goal is earn a safe and growing 7.5% yield and this simply isn't possible with bonds and stocks in 2020.
We have much better success investing in real estate, preferred shares, and asset backed loans. Below, we discuss three overlooked asset classes to earn up to 12% income even in today's low yielding world.
Invest Heavily In Income-Producing Real Estate
REITs (VNQ) have become the go-to alternative to bonds in low rate environments because they share many similarities to bonds but generate much greater income and protect against inflation.
Some say invest in rental properties, which can be a route for some investors, but REITs have historically generated... Read more