A few years ago, in response to questions at an AAII (American Association of Individual Investors) conference in Northeast NJ, a comparison was made between the history of “Market Cycle Investment Management” (MCIM) and some of the “High Dividend Select” professionally run. ETFs.
- My answer was: Which is better for planning a retirement, 8% in your pocket or 3%? Current answers may be 7.85% or 1.85%… and, of course, there is not a single similar molecule between MCIM portfolios and ETFs or Mutual Funds.
I just took (almost-the-best-I-usually-would-have-bothered) “Google” on four of the “best” most profitable ETFs and, similarly, a group of the most profitable Mutual Funds. ETFs are “listed” as “Dividend Achievers Select Index”, and are owned by major US companies with a record growth rate.
Mutual Fund Managers are responsible for saving a lot of money, and are expected to do business according to market demand; The ETF has every security in its records, at all times, regardless of the market.
According to their published numbers:
- The four most profitable ETFs of “2018’s best” have a group yield (for example, in your checkbook you spend money) … set to rest, 1.75%. See: DGRW, DGRO, RDVY, and VIG.
- In the same way, non-performing funds, the “very good” Mutual Funds, even if they are slightly higher interest rates, yield 2.0%. See the following: LBSAX, FDGFX, VHDYX, and FSDIX.
Now really, how can anyone expect to be at a lower income level with less than $ 5 million or more. It would not be possible without trading securities, and unless ETFs and funds rise in the market price every month, entry into the business should occur more frequently. What if there is a long-term market?
The aforementioned fees can be very good for a full refund, but not from the money they earn, and I do not know how the refund, or market price, would be used to pay off your debts. .without selling security.
As much as I love making high dividends (Investment Grade Value Stocks are all pay dividends), it is not the answer to the “preparation” of retirement savings. There is a good, direct money, in this place fairly making “dogs”; as well as having the lowest financial risk.
- Note that the risk of “cash” (the possibility that the issuing company will fail to pay) is very different from the risk of “market” (the possibility that the price may lower the purchase price).
Compared to apples and apples, I selected four funds that focus on Closed End Funds (CEFs) from a larger ecosystem that I have been monitoring since the 1980s. They (BME, USA, RVT, and CSQ) have a higher yield 7.85%, with a payment history starting at age 23. There are many others earning more than the ETFs or Mutual Funds listed in Google’s “best” results.
While I am a firm believer in investing in stocks only, high-income stocks remain a “growth target” and cannot expect to create a type of income that can be relied on from their cousins “for profit”. . But CEF-based CEFs are getting closer.
- When you combine income generals with CEFs that improve your earnings, you have a track record that can get you “on retirement planning” … and this is almost two-thirds of the MCIM’s running history.
When it comes to making money, bonds, favorite stocks, notes, loans, mortgages, real estate, etc. are more secure and more profitable than stocks … Street “. that’s the best they can offer.
They sleep through their teeth.
Here is an example, as mentioned earlier Forbes Magazine An article by Michael Foster with the title “14 Money Breaking Vanguard and Offering Up to 11.9%”
This article compares the total yield with the total return, making it clear that the total return is worthless as the competition generates 5 or 6 times a year. Foster compares Vanguard’s seven coins to 14 locks … The end result:
- “When it comes to the harvest and the return of a year, none of Vanguard funds. Despite their popularity, even if they are just wishful thinking and even the most exciting story that many want to believe – Vanguard is stupid. “
Hello! It’s time to dump her and move on. It’s time to dump her and move on.
“Market fluctuations or rising interest rates will not affect my retirement income; in fact, I have the opportunity to take advantage of all market movements and interest rates, at any time … without major attacks, except for unexpected emergencies.”
None here? Try this.
* Note: no reference to any security in this article should be construed as an impression of any kind, for any purpose: buy, sell, or hold.