Have you guys bought some fixed income this year? How much in that case?
I know, sensitive question. You decide if you want to post anything.
I can say, myself, that I have not yet bought any fixed income this year, but I am actually looking at Etrade right now. I am looking at a Danish bond giving 6% pre-tax per annum. Feels OK for me at least. A good place to park my cash right now and life a better life than last year.
If you can buy that same 6% at 50 instead of at 100 par value you will recieve a much higher return on money that way.
I like to just spread it out there as they say. Diversification of money. I earn my boat load of money in the company I own. I then diversify the cash I recieve from that entity into the three asset classes: paper, real estate and businesses (my own projects that is). I have not yet come to that stage where I have actually bought much real estate. I am involved in a new development deal in Argentina though. A Radisson hotel deal that will give me a fixed income stream from year 2011. Stream of approximately 10-15% annually pre-tax.
I feel that there is no wrong in making your life easier. If your company goes belly up (which they can and I know first hand) then you want to have some, or much, of your wealth invested in something else. Just for the sake of preserving the money.
Municipal bonds are popular these days around here. But the problem with bonds is you need to buy a lot of them to make any decent money.
Say they pay 5%, that means for every $1m in bonds you buy you get $50k in income...But if you own say $10m in municipal bonds the 5% starts to look decent.
They are very safe though, and right now that means something.
"Starvation is God's way of punishing those who have no faith in Capitalism."
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