Displaying items by tag: income

(New York)

Income is scarce and investors need it more than ever (funny how that happens). Bonds look very risky given the direction of rates. So where can investors turn? Take a look at three different asset classes: blue-chip REITs, preferred shares, and property-backed loans. Blue-chip REITs can be a good investment because they have high yields (e.g. 4%+), but are still quality companies. They are also often trading at a discount because of the pandemic. Check out ticker “0”, Realty Income. Private property loans are another good option, yielding 8-12% , and often having good LTVs of around 60%, which means you have some significant downside protection.

FINSUM: These are some good alternative income options. Our personal favorite are the REITs because of their liquidity, but private property loans are a good option too, especially given the new economic cycle.

(New York)

There are a number of forces propelling annuities forward at the moment. Not only is their component of tax deferral getting more and more valuable given the new administration’s tax plans, but the need and desire to lock-in guaranteed income has grown over the last year. The single biggest force, however, is the US demographic trend. An astonishing 10,000 people per day are turning 65, and 16.5% of the population is now 65 or older. By 2030 all Baby Boomers will be over 65. That means this gigantic cohort is moving out of their wealth accumulating years and into their drawdown years. Many need guaranteed income.

FINSUM: A lot of advisors have an automatically negative reaction to annuities, but the market has improved a great deal in recent years, and for any clients they are a good option.

(New York)

Not a lot of people think about the tax benefits of annuities. This is partly because 401(k)s are also a key retirement product and get most of the “tax-deferred” attention, and partly because annuities just aren’t all that well understood. But what they allow is the tax-free accumulation of interest and gains over time. This feature is growing increasingly popular, especially this year, as tax rates look likely to rise under the new administration/Congress.

FINSUM: This is just one of several reason why annuities are being seen as more valuable, but it is certainly a good one as taxes even on middle class Americans looks likely to rise.

(New York)

65 Stocks make up the dividend aristocrats in the S&P 500, known for their consistency, however some…see the full story on our partner Magnifi’s site

(New York)

The recovery has boosted the junk bond market as investors saw investment-grade bonds and government debt perform…see the full story on our partner Magnifi’s site