Thread: All I'm asking is 6%. Not 15%, not 12%. Just give me 6%

Hi,

First post. Read the book, loved it. It could have been me who wrote it, it was like reading a biography, down to wanting to free myself from work so I could write screenplays (wrote two already) Made my first mil at 28, I'm now 32. Did not sell my business yet.

My situation is this. All my money is in CASH.

In the book MJ DeMarco talks about making 6%-8% out of "safe and liquid" papers, municipal bonds etc.

What is he talking about?

I look at the offerings on TDAmeritrade website, I see much lower numbers and on top of that, states like CA and others may bankrupt at any moment. Are these papers really safe?

I'm desperately looking for that "safe 6% a year" investment but I just can't find it! Where is all YOUR money? I'm not asking for 15%. Not even 8%. Just give me 6%.... (net of fees) really. But WHERE?

Is this something you would buy:

Order Period* 09/06-09/12
Coupon* 5.00%-8.50%
Issuer Goldman Sachs Callable Step-Up Notes (Negative Outlook)
Moody's/S&P Rating* A1/A
Maturity* 15 Years
Callable Yes
Minimum Investment* $5,000.00
Payment Frequency* Semi-Annual


Please help !

Thank you!

No such thing as a safe investment, only a safe investor.

The types of opportunities you are looking for will present themselves as you educate yourself and become an investor.

Originally Posted by davidil

n the book MJ DeMarco talks about making 6%-8%

I never said this. I said "even in this low interest rate environment, I can make 4-6%."

For example, Southern company is a stock I hold (SO).
It yields 4.6%. (Although I've made 10% on its appreciation).

I own Australian government bonds via FAX. It yields 5.5%.
I own some closed-end munifunds, example, PMM yields 7.2%
I own some REITS -- PMT for example, yields 12%. (<-- more risky)
I own Australian dollars - it yields 4%.

So no secrets here, just plain old diversification a la "The Intelligent Investor" via tdameritrade and such and that's about it?

My main problem is that my money is in Switzerland and they kill me with fees. Any paper I will buy they will take their 1%.

You have no problem putting a mil into an online brokerage account? This is really how things are done?

Sorry if this is a stupid question - my parents are middle class, I have nobody to ask these questions.

Wow... PMM looks risky to me:


Putnam Managed Municipal Income Stock Chart | PMM Interactive Chart - Yahoo! Finance

So basically, this is "as good as it gets" when it comes to papers? 3.5% or high risk?

I don't get it. I think that if I was smart enough and hard working enough to make some $$$ and then I lend it to someone else, I should be able to get AT LEAST 6% for it. Wouldn't that just be FAIR? The bank takes my money, charges others 15% for it A FEW TIMES, and I can't get a freaking 6% without risking losing my pants.

No justice.....


...... give me 6% and I'll be happy.....

anyone?

I suggest you invest in some investment books. I'm doing this now. It's suicidal for anyone worth a 1m+ to not know about how to invest their money the right way. The best person who can manage your money is you. It doesn't matter how good a financial adviser is, they won't care about your money as much as you do. You should still consult with the pros but educate yourself well enough so that they can't fool you.

I read the intelligent investor.... so that's really as good as it gets? I should split my money into half, half into real estate, the rest to divide between 32% in bonds (my age) the rest in the stock market, and cross my fingers?

Doesn't sound like FastLane advise to me... but maybe it is. I don't know. That's why I'm asking.

Read more books. You need to read at least 5 different investor books to have decent knowledge on the topic. Also you have to keep learning as things change and laws are passed.

There are some advanced investing models and anything that will yield you above 1.5% involves some risks but that doesn't mean you will lose your money, it's just that the chance is there. Read up on any any market you're invested in religiously to know when to exit.

Originally Posted by davidil

Wow... PMM looks risky to me:

Only if you don't know what you're doing.
You got to know when to buy or sell these.
My basis is in the 5's.
And the income is tax-free.

Originally Posted by davidil

I should be able to get AT LEAST 6% for it.

Sorry, but a "risk-free" rate of return of 6% doesn't exist, and frankly, it never will. (And no, I don't consider treasuries "risk free")

Originally Posted by CarrieW

how do you get 3.5% from just owning a currency?

Just buy the FXA; it currently yields > 4% annualized, paid in monthly payments. Of course, the real value is in the dollar depreciation. I also wouldn't recommend a currency ETF unless you're time horizon was > than a few weeks. (Currency markets are 24/7, the ETFs are not.)

Again with ANY of these things, I don't buy them and sit on them for years. A 10 year chart is useless to me. For example, during August's sell off ... FAX sank to 6.90. Most people would sell, scared shitless. Me? I bought 10,000 more. In a few days it was back to 7.50. I made an extra $6K in a few days, and still collected the > 5% yield. Risky? Yea, if you don't know when to buy or sell.

Originally Posted by davidil

Doesn't sound like FastLane advise to me

I never said the markets were Fastlane. I don't use the markets to get rich or to accumulate wealth; I use the markets as a vehicle to lend and deploy money - this creates passive income. And sometimes the side-effect of that activity, is capital appreciation. (Like the examples I cited above.)

Originally Posted by MJDeMarco

Just buy the FXA; it currently yields > 4% annualized, paid in monthly payments. Of course, the real value is in the dollar depreciation. I also wouldn't recommend a currency ETF unless you're time horizon was > than a few weeks. (Currency markets are 24/7, the ETFs are not.)

There's also the foreign-currency CDs at Everbank. Aussie dollar currently pays 3.63% for a 12-mo CD, plus currency appreciation. 3-month Brazilian Real pays 4.84%. I don't know if I'd trust that but it's trended up pretty nicely for the last few years.

https://www.everbank.com/personal/ra...tab=currencies

Originally Posted by MJDeMarco

Sorry, but a "risk-free" rate of return of 6% doesn't exist, and frankly, it never will. (And no, I don't consider treasuries "risk free")

Well, in that case it really does sound like real estate is a good investment where you can expect 4.5% easily, if not more. Especially if you can get a low interest mortgage, leverage your cash to buy a few properties or a very large one, buy them when the market is down (as it is now).... wouldn't you agree?

Originally Posted by CarrieW

sorry but the blonde must be kicking in but wth is fax n etf?

Dude, google ETF.

Exchange-traded fund - Wikipedia, the free encyclopedia

I don't know what FAX is and can't google it because it gives too many Fax related results....

Originally Posted by 911Carrera

Read more books. You need to read at least 5 different investor books to have decent knowledge on the topic. Also you have to keep learning as things change and laws are passed.

OK mate, I'll do that. Any recommendations on which ones to read?

Cheers

What inudstry is your business in and how long did it take you to reach $1m in revenue?

Sorry for going off topic, but thanks

Software and now Application design. Took a few years...

I need to put away a certain amount this year to help out with my taxes and I really hate to put money in the stock market.

Any recommended books?

OK, I'll tell you what's my problem.

I honestly believe I'm cursed. It's not me, it's my whole family.

If you want to make tons of money all you need to do is short what my father does. You will make 5% a month, guaranteed.

About a year ago I found a paper at my bank (UBS) which made 1% a month for about two years straight. I told my banker - "now look - I'm going in, you will see how this paper will start losing money". I went in with $30k, went out 6 months later it was worth $24k. Up until the very day I bought into it, it only made money. As soon as I bought it, it started losing.


If I'll put my hard earned money into ANYTHING which is not capital protected, I WILL LOSE. I honestly believe that.

I remember driving on Sunset in Los Angeles, there is big Apple billboard there for years already. I saw the ad for iPod and told myself "I should have bought Apple shares when I had a chance... idiot.... now it's too late!"

That was 2005....

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