If you’re thinking about retirement or investing in some high yield real estate deal, don’t. Because as soon as you run a few scenarios grounded in reality and not “pie in the sky” dreams, you quickly realize losing income and principle are grave mistakes you don’t recover from, ever.
In my conversations with investors, I hear it all.
You wouldn’t believe some of the dividend yields I’m told are out there, ranging from eight to twenty percent. Good luck with that.
When the government offers ten-year treasuries with an annual yield of 0.66%, it’s time for a reality check.
“But,” you tell me. “This deal is solid. These guys have been building these over-55-retirement communities for years.”
Look, I know what they’re telling you because they tell me the same thing, and I’m sorry to burst your bubble, but I don’t like it.
My advice: This is no time to reach for yield. And if you’re thinking about retirement, it’s time to reconsider that dream. You’ll have plenty of time for pickleball later (I hope).
When thousands are laid off daily, it’s time to get your financial house in order.
Think about that government 0.66% and recognize how big a dump truck of cash you’ll need to (a) match your current salary or (b) meet your income needs if you’re retired.
You quickly see this is a time for survival, not some high yield dream scenario being sold to you.
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P.S. How To get $80,000: Gamble a million bucks on an eight percent retirement community, or invest just over $12 million in a ten-year treasury bond backed by the full faith credit pledge of the U.S. government—for whatever that’s worth.
Originally posted on Your Survival Guy.