JAAA
Janus Detroit Street Trust - Janus Henderson AAA CLO ETF
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US government bonds are considered to be zero risk by most people. But the industry sees a risk of the US defaulting in the future and so there is an implied 0.5% risk. JAAA is just above that but stil about zero risk. Note JAAA invest in investment grade to senior operate loans which in the 30 years this category has been available zero defaults. JBBB and CLOZ (8% yield) invest BBB grade loans and has a 1% default risk. Even in 2008 BBB trade CLO funds had a default rate of 1.2%. Note the big problem in 2008 were mortgage backed securities which were marketed with a AAA rate that was way off the mark. mortgage backed securities had about a 50% failure rate. There is another asset you should consider is cooperate bonds. BBB rated bonds have a historical 4% failure rate. Many call these (Junk bonds). But when you roll bond from hundreds of companies in a ETF the combined risk is a lot lower. Junk bond funds typically pay a dividend of 7%. So overall all of these funds are excellent for short medium term savings. Not that is a serious market crash panic selling takes over. When people panic they sell everything regardless of how good or bad it is. So in a panic sell off the share price of everything drops by a lot. So even JBBB and JAAA saw price drops due to the april tarif news but quickly recovered as sanity returned to the trading floor.
S&P is popular due to its high growth. In economic downturn growth will mostly vanish. But growth stocks are not the only investments out there there are a lot very good dividend funds available. These don't have much if any growth but they pay you cash monthly or quarterly. Some good Examples are ARDC 9% yield, PBDC 9%, EMO 9%, PFFA 8%, CLOZ 8%, UTF 7%, UTG 6.3%, and JAAA 5.5%. You simply buy and hold the fund. The cash dividend is deposited into your account the market will go up and down but dividends keep paying. regardless of what the shar price is going. I currently get 5K a month from dividends.
I see. Yeah, SGOV is 4.4% YTD return and I don't know of a HYSA that's over 4.5% APY without some sort of temporary bonus. I've only seen JAAA suggested in other posts about SGOV. RN I only have under $20k in SGOV, so not enough to make a huge difference in return, and Im slowly teaching myself and asking kind folks like yourself about my options. I just need a reliable return for whatever cash I have saved
I think there won't be much difference between the HYSAs and the short-term treasury ETFs in 2026 compared to 2025, because basically they compete with each other, so when the ETF yields fall, the HYSAs don't have to offer as much. You might be able to eke out a few basis points more in some HYSAs if you can find them. Someone asked last week about JAAA and JBBB I think, I don't know if it was you, but if you look at older posts here or in r/Dividends you might find it and some opinions on them. I looked at JAAA and JAAB and they have higher yields but they are invested in corporate CLOs, so they're not going to be quite as safe. JAAA's NAV has been declining also. It was $51.04 on the last day of Jan and $50.73 on the last day of Nov. 31 cents doesn't sound like much, but that's 0.61%. It also took a (temporary) dive on Liberation Day, while SGOV didn't bat an eye.
I'm projecting onto OP, but I would also like to know if SGOV is a good "HYSA alternative" for 2026, or if JAAA or something else functions better? I wasn't going to chase APYs, so I switched to SGOV. I should have a 401k or more diverse investment portfolio, but work has been sporadic the last few years. I'm just trying make cash I have do some work too.
Saving on the NY state tax is nice, but you could just buy BOXX and not pay any tax. They’ve managed to avoid paying out distributions all but one month in their history. And it’s “yield” will be comparable to SGOV. I have used JAAA for cash I wouldn’t touch for 6-12 months. You could honestly use it for an emergency fund too, as long as you have probably 20% more than you think you’ll really need in that fund
rate cuts bringing cash yield down to 3.5 im slowly moving my SGOV into JAAA and so are the big bois check after hours 5 mil volume today alone been getting bought every single day in the AH div stocks will continue to pump as smart money positions into high yield assets while growth bleeds the rest of the year calls on div stocks are free money right now
I would gradually sell it off and reinvest it. yOU could reinvest some in JAAA 6% yield,9%.CLOZ 8% yield these are veritable reliable dividend payers, Keep each at 50K invested. Then add 50K in UTF 7% UTG 6%, PFFA 8%, PBDC9%, EMO 9%, ARDC. These funds produce income you could use to pay utility bills rent, mortgage. roth deposits or simply be reinvested in these funds. If you sick or injured injured or become unemployed for an extended period of time you can use the income to cover expenses until you can return to work. Or you could invest in growth index funds. If you have a big unexpected expense you can sell the growth shares you could get enough money to cover the expense.
I would put it in QQQI the high yield from this fund will generate about 1K of income a month. You can use this income to help cover living expense or used to make deposits into your Roth IRA. Or you could add more money to QQQI to get even more income. I did this and added more funds like SPYI, EIC, ARDC, EMO, PBDC, PFFA, CLOZ, UTG, JAAA. Today I have 5K a month of income from these investments.
AAA CLOs, still just over 5% (JAAA, PAAA, etc)
JAAA is pretty safe at near 6% but its not zero risk. if you went with a bucket of 40% JAAA + 60% SGOV or similar - you would average out near 5% and reduce the already minimal risk. (or throw 10% in sp500 and boost your risk and hopefully increase the return as well)
Any dividned ETF with a yield of 1% that pays monthly well generate JAAA 6% yield will pay $60per year in $5 monthly installments. And you don't have to sell shares to get the money. It is simply deposited into your brokerage account. CLOZ 8% yield $6.6 per month. QQQI will generate $10.8 per month.
Your at a point were you need torethink how you invest. You can keep in vin sting in growth index fund (all the fund you listed ar growth index funds. I would suggest investing you money in the taxable account into dividned ETF. Dividends are cash profit sharing payments to you. For example you could put money in your taxable brokerage account into CLOZ with a 8% dividend yield. 100K invested in that fund will generate all the money you need for your roth deposits. Or you could use the money to pay bills and other expense. You can get yield from 1% to 10% with about as much risk as your growth index funds. CLOZ actually has less risk than growth index funds, I have fund these dividend funds in my taxable account EIC 11%, PFLT 12%, ARDC 9%, EMO 9%. PBDC 9%, PFFA 8%, CLOZ 8%, UTF 7%, UTG 6.3%, JAAA 6%
buy age 60 most people become risk avers. So if you put him in VT and the market crashes he will likely sell VT at a loss. it happens all the time. Good bond funds are really a better investment for people 60 or older. government bonds are more stable plus they produce income which is what older people really want. As long as the income keeps coming in they will be hesitant to sell. But don't just rely on government bonds. there are some good cooperate bond funds and CLO funds you could add to. I currently like JAAA 6% and CLOZ 8% yield. Very reliable dividend payers.
What bonds do you have? At the moment I can’t bring myself to buy bonds over JAAA/SGOV
I did that and I am now retired at 55 and living off of my dividneds. Currently at 5K a month of income. Enough to cover my living expenses. I would like 100K in retirment and I estimated my tax for regular dividends with no other income and found my tax owould be 15K or 85K of income after taxes. It will be a few years before I get there. So it is possible to do it with just high tax regular dividends. Qualified dividends have a lower tax. But they are other low tax operations municiable bonds and ROC dividends. ROC means return of capital ( a tax classification) and freaks an out a lot people but A good fund can have ROC dividends by doing tax loss harvesting while earning a profit from your investments. This creates the ROC classification without returning any of your investment. The advantage Of ROC dividends is that you pay no taxes on the dividend. But when the cost basis of your shares reaches zero (which takes years you pay long term captial gains taxes which is the same as qualified dividend. Neos has some ver good covered call funds (see their website for a full list. But two of my favorit are SPYI 11% yield and QQQI 13% yield. You won't find qualified stock or ETF with this yield. And with these yields you can build up passive income faster than you can with qualified dividends of Note some other funds I hare (most are regular dividends) are : EIC 11% yield,, PFLT 11%,EMO 9%, PBDC 9%, ARDC 9%CLO 8%, UTF 7%, UTG 6.3, and JAAA 6%.
I see two basic mistakes people are making. >Completely ingnoring dividend investments and just investing just in growth. >Focusing only on retirment and investing taxable brokerage account that can help them cover living expenses now rather than later. Dividend play an important part in the overall market. And ignoring basically leaves potential earnings out of your investments. Growth can make you rich really fast but It can vanish just as fast without you doing anything. Dividend income is much more stable an can allow your Roth or 401K add more shares of stock while you are unemployed and the market is down with minimal or no growth. Also with all the focus on retirment many ignore the advantages of taxable brokerage account. Today many only only have money market accounts (that are basically HYSA) in a taxable brokerage. Frequently you see people post they yield of the money market account or HYSA is dropping and they are looking for a higher yield. And often the ammount of money list is well over the 6 month emergency savings recommendation. Most of these I got a higher heat at X brokerage or invest in SGOV. funds like JAAA 6%yield and CLOZ 8% yield are both very low risk funds that easily earn more than HYSA and money market funds. And there are some really good dividend funds with yield in the 9% range. In my opinion once you reach the 6 month emergency fund level you should invest for divines to slowly convert your emergency reserve to a dividend passive income fund. Keep the emergency reserve but add enough passive income from bonds and dividend fund to generate enough cash for your yearly roth deposit or use the passive income for you monthly bills. Passive income from bonds or dividends never runs out it is continuous income. The 6 month emergency fund only last 6 months.
If you're going to park a 'substantial amount of money' somewhere you should be able to look this stuff up and know what you're getting into. Else you're probably better off with SGOV or a HYSA instead of chasing a better yield. There's no such thing as risk-free, high return investments. PFRL is probably more risky than HFSI, but it's the type of risk that makes it interesting to me. The majority of their holdings are in senior secured loans from major institutional banks. My biggest concern is a 2008-style collapse and a wave of defaults. But relative to the market at large, it has not experienced wild price fluctuations. The biggest drop in price it has experienced in 3.5 years was Great American Tariff Day. While most of the market plunged, it dropped from about $50 to $46 and was back up within about 2 months. Otherwise it has been very steady - similar to funds like JAAA. The relative stability and utilization of senior-secured loans make it more attractive to me than something like PHYZX. But I am not a financial expert and you should do your own due diligence. I'm just sharing some funds to look into.
JAAA maybe - historically it has been pretty safe - but there are some warning signs in private credit (eg the implosion of Tricolor) that would make me hesitant to use it replace SGOV. Maybe a partial allocation? I have also thought about making a small allocation to TLT which might benefit more from deflationary pressure during a recession, but don’t feel like I understand enough about how the long bond market operates to understand wether that upside is worth the added volatility despite similar yield.
Buying SGOV does give 3.9% and doesn't require paying state income tax, although as an emergency fund it may take more time to settle and use it as cash. There are corporate bonds like PAAA and JAAA which give over 5%, although it requires more risk tolerance. Ideally you might prefer having the ability to quickly use your funds in an emergency without having to worry about any possible depreciation of their value. What I can probably recommend is to look around for the highest yield savings accounts on websites like depositaccounts.com.
What about something like JAAA?
The highest utility from investments comes from cash dividends. you can spend the cash on enacting you need or reinvest it. Growth is nice but it isn't real until you sell it and cover the income to cash. My roth is invested in BTCI 25%, QQQI 13% yield, PFLT 12%, ARDC9%, EMO 9, PBDC, PFFA 8%, ClOZ 8%, UTG 6.3%, JAAA 6%. These investment in my roth generate about 30K a year in the roth. Which I reinvest. IF you use a taxable account the money could be used to cover living expense ore reinvested.
At this point in like you should have about half of your IRA invest in bond or dividend funds that produce passive income to cover your bills. You want enough passive income to cover about 1.3 times your yearly living expenses. IF you don't spend all of it in a year reinvest the excess. Bond are nice and safe but the yield is low so you might be short on income if you just use government bonds. With dividend income from dividend ETF the yield is higher and you should be able to get the income you need. If you invest in finds like JAAA 6% yield, CLOZ 8%, PFFA 8%, PBDC 9% EMO 9%, you should be able to create a portfolio with an average yield of about 7% to generate 56K a year of income. As long as you are working you can reinvest the income to grow your portfolio even more. You might want to read the book The income factory and look at armchair income on youtube for additional fund ideas.
What are you taxes on the HYSA now assuming it has the ammount you want to invest? It isn't likel that much money. For HYSA you are now getting about 4% yield and it is likely dropping. You could open a taxable brokerage account and put your money in a dividend fund like CLOZ you would get 8% yield payed monthly with can be reinvested in the fund or spent. You can make adjustment with your work tax withholding to account for the extra income. if you slowly build up the money in the fund it will eventually produce enough to start covering some of your bills. And eventually it could cover all of your living expense. If you don't like CLOZ you can use QQQI 13% yield, SPYI 11%, EMO 9%, PBDC 9%, PFFA 8%, UTF 7%, JAAA 6%.
If you want to retire before age 60 you need to have taxable account to provide you with income until age 60. So this typically means people have a taxable account and retirement account. And sometimes just a taxable account. Now in a taxable acount the tax is generated by dividends, and capital gains from the sale of stock. Often dividends is what people worry about the most because that is taxed on the year it is received. Capital gains taxes mainly occur when you sell share with likely won't happen until you retire. Now an easy way to avoid dividend taxes is to use an ETF with a very low dividend. Growth index funds typically pay a dividend of 1%. So the dividend income on 1 million in invested is only about 10K. Since growth index funds average a total return of about 10% a year most people invest in these funds and then sell off about 4% a year for income when retired. At a 4% liquidation rate the income should last 30 years. 30 years is fine if you retire at age 60. You likely will die in 30 years. But if you retire at age 40 you need income for about 50 years. Which teams a withdrawal rate of 3% or less. Which also means you need to save a lot more money. These is another way to FIRE that doesn't involve liquidating stock for income. Invest for dividends. Using dividend ETF. You can easily get a dividendyeild between 5 and 10%. And dividned income doesn't involve selling shares. So if you save up 1.5 million and invest in a portfolio yielding 7% your after tax income would likely be around 80K a year. So you could focus on taxable account and build up a dividend portfolio using funds Like QQQI 13% yield, Spy 11% yield, PBDC 9%, EMO 8%, PFFA 8%, CLOZ 8%, JAAA 6%, and UTF 7%. you can do it . Now you likely would have to make quarterly 5K estimated tax payments to the IRS. But despite that you still have enough income for retirment. And if you take 7000 of that dividend income you could put that in a Roth to build up more tax free income. you can use after 60.
Most of your investment are growth funds. meaning 99% of your earnings comes from share price increase. There are fund that invest in companies with little to no growth but they produce a profit sharing cash payment to you about once per month or quarterly. So when the market crashed these stocks still (of at least most of them) still pay a dividned. You can get dividends from 1% yield to 100%. but for what the best rang is about 1% to 8%. Some of the safest don't even invest in companes. Bond (corporate and government), and Collateral loan obligations are some of the best. Some of these that I will probably be adding to my portfolio are JAAA 6% yield, UTG 6.3%, UTF 7%, CLOZ 8%, PFFA 8%, Inane bear market dividend producing assets do better than growth assets. In a bull market growth does better than dividends. Since about 1/2 the time the market in a bull or bear condition it only makes sense to have a protfolio that is a mix of dividend and growth.
Crash resistant fund are generally dividned funds that in vest in very stable assets. These funds will go up and down in share price with the market but even in a sever crash like in 2008 they likely will continue to pay a dividend. Some of the best ones I know of are JAAA 6%, UTG 6.3%, UTF 7% CLOZ 8%, PFFA 8%,
You chasing returns and constantly checking your portfolio as a reasult. most growth index funds average about 10% a year. You could rediscover what your dad did. Dividend stocks. Is your dad constant checking the market and stressing about when the buy and sell? Likely the answer is no. For example you could invest in JAAA 6% yield ,UTF 7%, CLOZ 8%,PFFA 8%, without doing daily checks. Also with dividends stocks like these you they alway pay a very stable and predictable dividend. dividend cuts are rare with these funds. And you can boost the dividend to about 10% buy adding some higher higher yield funds PFLT 12% PBDC 9%, EMO 9%SPYI 11%, QQQI 13%. For dividends you buy and hold. With many of the funds I have list they deposit cash monthly into your account. Others deposit quarterly. Also many worry about market crashes with many of the lower yeild funds will continue to pay even when the market is down a lot. I ha30K of dividned income before Covid. The market crashed and 50% of the stock price disappeared quickly. But my dividned chacks came in on schedul and I still got 30K a year. And after covid the shoe price recovered with the market. Today I retired early at 55 and have 5K a month of dividend income from a taxable account that coves all of my living expense In Fact I routinely invest 1K back into the market. You can get this level of income with about 500K invested at a 10% yield. Just invest what you can monthly and reinvest the dividends. It will take time but you will get there. If you want you can start with the higher yielding funds first and then switch to the lower yielding funds. and your can use the dividends from a taxable account to fund your Roth or pay regular monthly bills. day trading and growth investing is like making bets a a football game and watching the gave.. Dividend is like watching plants grow. you wanch and occasional trim.
Then you can't hold anything in your portfolio other than SGOV and maybe JAAA. There's always the possibility of a crash. Maximize your income, minimize your spending. Gambling on stocks is just as likely to make you less wealthy than you could've been by 38.
Moving assets to income producing securities should be done before you get to retirement to secure reduce your risk. BND is a good choice but there are many good choices. Funds like JAAA 6% yield, JBBB 7.8%, CLOZ 8%, UTF 7%, and UTG% 6.3%. All have higher yield than BND and other government bond funds and historically are very safe investments. less safe but still not terribly risky are PFFA 8% yield, PBDC 9%. But you also need to factor in your expected income needs. you need to have a good estimate of your income needs in retirement and then gradually work on configuring your portfolio to generate more than that income. IF your account generates more than you need and you reinvest the excess income you will never run out of money.
100k VTI, 20k VXUS, 20k QQQM, 10k JAAA
Park your current money in JAAA or similar until after the Supreme Court rules on the tariffs and the government is back open again and the picture is more clear. Or buy things that are devalued currently. Euro stocks you said yourself in particular in France due to political turmoil there are at a discount. Critical element miners may have room to run here and in Australia depending on how negotiations with China go. I don't know. I'm holding until the tariff ruling. It may be priced in already I have no idea but it's the next catalyst I see. Tech earnings will be in by then also and things will hopefully make more sense.
You’re very welcome. Yeah the timezone is a pain, but also forces me to be disciplined. The US market shouldn’t be doing what it’s doing, based on the actions of the current administration. Who knows where it will end, but it won’t end well. I’m now concentrating on the call side more than the puts, I’m now at around 10% cash and looking to get to around 30% over the next month or two. I also have some hedge contracts in place on SQQQ which will protect around 25% of the remaining portfolio in case of a market crash. I’ll continue with options right the way through, but honestly the senses are tingling right now haha. I’ve been sitting on 20% cash in my four fund portfolio (using JAAA to squeeze a bit of yield) but remain 100% invested in the dividend account. All have margin available for after whatever crash happens. I’m too close to retirement to be taking more risk than that. It’s been a fantastic year, I’m up over 35% across all accounts so I’m being super cautious from here for a while. Watch then, as the market continues to rip up another 25%!
Most peop le keep money money market fund or HYSA. This is find with 6 months of cash but if you are unemployed at the start of recession you could be out of work for a year or more. At that point your emergency fund is gone Now what? At some point it is better to invest the money into dividend fund that will provide continuous income. Say you have an emergency fund that has grown to 100K. If investing in a HYSA account yielding 5% you get 5000 a year of income. But if invested in a fund with yield 10% you are getting 10,000 a year. pu that to 12% and you now get 1K a month of income Enough to cover basic needs. It is not unusual to see people with 300K in a HYSA. That could generate 30K a year, just under 3K a month of income. Now if you need money you don't need to liquidate the fund for money. You can set up a brokerage account so that all the dividend money will go into money market account. So you can have a 6 month emergency fund. And if the cash fund is large enough you can reinvest the money back into the dividend fund for more passive income. The passive income could be a bond fund or a safe CLO fund (JAAA 6%, and CLOZ 8%). Or it could be a higher yield fund like QQQI 13% yield is a good choice. In addition to its high yield it is also tax efficient. With a good dividend fund you could keep your emergency fund full and grow passive income Eventually you could build the dividend fund to produce enough inocme to produce enough income to cover all of your live expenses.
No emergency fund. Take out margin against your assets if you need the cash Plenty of places to earn good interest like CLOZ, JAAA, etc
At that point I would go for JAAA which is practically like a bond but has over 5% returns
I like JAAA. It's above cash/money market on the risk score but the additional risk is compensated by a higher yield.
A mixture between stocks and bonds. like 60% VT + 40% BNDW. For corporate bonds, you may buy JAAA/PAAA/CLOA, but honestly BNDW is fine as it includes corporate bonds
Hold gold, bitcoin, and bond like stocks such as VZ. Also BDCs like MAIN or a BDC ETF like PBDC. These are not correlated to the equity market directly. On some red days I see all of these go up and vice versa. These will smooth out the volatility. Also hold corporate bond funds like JBBB or JAAA or even STRC which pays 10% and has stable nav.
I’m up over 50% since Feb. Trimming here back to the roots, sitting in JAAA for a while. 57M, retiring in 2 years so pivoting to income.
you might want to invest in funds like eCLOZ 8% yield, JAAA6% yieldThese are CLO funds basically it is a loan obligation that collateral backing the loan. So if the company with the loan goes into default the collateral is liquidated and you get your money back. UTG 6.3% yieldand UTF 7%yield. both are utility funds but there is very little overlap in there investments. The utilities are regulated and are not going bankrupt and shutting down suddenly. All very safe dividend investments. This limits your exposure to the higher valuations of growth funds for now. * This would generate 13K a year and you could invest all that income into growth index funds. Since you are buying in slowly you are basically dollar cost averaging your purchase. in 12 years you would have 200K in growth and 200K in dividend funds. * You can set up automatic monthly purchases of the growth using the dividend income you could also take half of the earnings and put that into roth and reinvest what is [left.in](http://left.in) growth funds. * You could also ignoregrowth funds and reinvest all the dividend back into funds that generated them. I about 12 years you will have 400,000K with about 26K a year of income. * If you loose your hob at any time and need income you can stop rienvesting the dividends and start recieving the cash during the next dividend payment. Which would be a bout a month. Note I am assuming you add no more money to the 200K. So the only money going in is the dividend income. of cource could add a new higher yielding funds for more income.
Depends on your definition of safe, but look at CLOA (or JAAA) or BCLO. I use BCLO for some of my parked cash and it doesn’t give me any heartburn whatsoever but others would run away screaming from the idea.
Instead of HYSA buy JAAA & JBBB.
Even if you were the worst investor in history and always lump summed the day before a downtown, you’d still be so much further ahead. With inflation, you have to think of your SPAXX as losing whether there is a downturn or not. You do you of course, but since you asked for advice. There is even a happy medium here. There are conservative dividend funds and closed end funds like JAAA or CLOZ that can earn you 6-9% with little volatility
Many low beta stocks or funds are Dividend stocks. So you could get: * Low beta * Low volatility. * and income At the same time without adding bonds cash in money market funds. you can get consistent dividend yields of 6 to 10% Which is better yield than banks money market or government bonds. And you can use the dividend to either increase your dividend over time by reinvesting it bank into the fund or stock. Or you could invest the dividend into more growth index funds. UTF 7% yield and UTG 6.3% yield are both good utility funds. Regulated stable companes. JAAA 6% yield and CLOZ 8%. These in collateral loan obligations JAAA invests In AAA rated loans and CLOZ invests in BBB rated loans. These loans are back by hard assets so it the company can't make its loan payment the assets can be sold to pay the investors. EIC 11% yield is a similar fund but it invests in CCC rated CLOs. Dividends are payed out generally quarterly or monthly. and it is not uncommon for dividend funds to pay out there dividend even if the stock price falls in a market crash.
It really depends what you mean by "a bit". TIPS ETFs are the most direct way to hedge inflation, but they’re still bonds—so they can have drawdowns when rates rise (2022 showed that clearly). If you want something less rate-sensitive, AAA CLO ETFs like JAAA or PAAA give you floating-rate exposure (income rises with short-term rates) and generally behave more like “enhanced cash”, though they carry some credit risk. For true short-term parking, ultra-short Treasury or money-market ETFs are safer, but they won’t keep up with inflation if it really spikes.
Bonds loose out to inflation because their yield is very close to the inflation rate. The long term average inflation rate is 3.2%. So you should be looking for yields of about 6 or higher. You could invest in CLO (collateral loan obligations with JAAA 6% yield from AAA rated loans. or BLOZ 8% BBB rated loans. There are two really good utility funds UTF 7% and UTG 6.3%. You could set dividend reinvestment to off. That way the cash then goes to a money market account earning about 3 to 4% You could spend or reinvest the money in the money market fund. I am retired and I use this aproach for my income. My income right now evceeds my living expenses. So 80 it spent and 20% is reinvested to insure my portfolio grows over time. Annuities are over hyped by marketing and often cost a lot fro the income they provide. And often the annuity locks you into that one investment for a long time. %
You can move the account to a brokerage without insuring taxes. I use fidelity. All you have to do is contact them provide them with he account number for the american express account number and fill outcome forms and they will mov the acount to fidelity. >I guess I realize I lost money by not putting it in stocks and by inflation. I just don't know what to do. IT is important to realize your fear of risk is is not based on your experience with your investments but your fear of not knowing what will happen. In most cases the fear is a lot larger than actual risk. In my IRA I have a bond fundFAGIX that ear a steady 5% yield but I also have JAAA 6%yield, CLOZ 8%, UTG6.3%, UTF 7%, PFFA 8%. All of these investments produce cash payments into your account regardless of what the share price will do.The share pirice may go down but the cash will still be deposited quarterly. Generally people like you do better with these investments. Now you can add up to 7000 a year into an individual IRA. I strongly suggest you do this every month. Over time as you get more failure with these funds your fear will drop. Some higher yields can be achieved with slightly more risk with funds like PBDC 9% yield, SPYI 11%. And you could put some money in VT. All of these do hold stocks. Start out small first and gradually increase the ammount. in them.
I picked up JAAA and JBBBs. I like playing the BBBs better because of the yield premium.
there are always people saying don't invest for X reason or invest for Y reason. Ignore all that and focus on understanding the investment your advisor is recommending read the prospectus for any funds an in general learn how to evaluate your investments. Your advisor can probably guid you or recommend classes or books to read to help you learn. Right now this is all new to you so I would ignore the news and focus on learning about dividend and growth investing and and evaluating 12K a month you are going to owe taxes on that. So keep that in mind and make sure you have have a tax advisor. But that said what i would do is invest the money in low risk dividend stocks. Such as JAAA 6%, UTG 6.3%, UTF 7%, CLOZ 8%, PFFA 8%. Eventually the money your are getting now will run out. When it does you want something to fall back on. All these funds generate cash dividends.
JAAA has a floating rate though. Different kind of risk.
Instead of a Treasury ETF, why not go with a corporate bond ETF that will provide better yields, while also mitigating risk through diversification? JAAA is one example of this.
IMO it's very low-risk. CLOA is very new, so doesn't complete Morningstar data yet, but it's basically a clone of the JAAA fund. Both only invest in AAA rated companies (the most creditworthy). Morningstar rates it as a 7 on a scale of 1 - 100 in terms of risk (1 is the lowest score you can get -- VOO is rated 75 on the risk scale). The price range for CLOA over the past year has been a low 50.61 and a high of 52.12, so you can see the price doesn't fluctuate much.
You could invest the money in JAAA 6% yield and JBBB 8% yield and PFFA 8% UTF 7% and UTG 6%.Thes all invest in different assets and provide a much better yield. These are dividend funds that pay out quarterly or monthly. Some higher yielding options are PBDC 9%, ARDC 10%,EIC 11%, and SPYI 11% the lower yielding funds are safest while the higher yielding funds have slightly higher risk. YOU will have to use a taxable brokerage acount for these funds. Set dividend investment to off. Cash will show up in the account and from there you can move that to your bank account. The higher yield of these funds will probably double your income. Any money you don't spend reinvest it for more income. Your taxes will go up due to the higher income. So you probably will have to make some adjustments to your tax withholding. I strongly suggest you read the book The Income Factory. and look at Armchair income on youtube.
I mainly do 3 fund portfolios 40/40/20 One is SPTM/SCHG/AVDE One is SPMO/XMMO/IDMO One is CWB/JAAA/BIL
Stable dividend funds like JAAA, CLOZ, MAIN, etc. these are stable and will pay you monthly
also look at PAAA run by PGIM - Prudential, paying 5.45% 30 day SEC yield, all AAA, and holds senior triple A compared with JAAA, holding more junior AAA
I'll check this out. Note PULS actually gained in 2022, and in the last year is pretty steady +/- <0.5%, but JAAA still worth a look for the yield "premium",
What type of an account? Where do you park something like JBBB or JAAA?
PULS SEC Daily Yield (Unsubsidized) as of yesterday 08/15/2025 is 4.48% per PGIM website JAAA per Janus website (As of 07/31/2025)30-Day SEC Yield - 5.32% JAAA will fall with FED Funds as well due to short term variable rate funding, JAAA is >95% AAA rated CLO with no AAA rated default in US history, and during 2022, worst year for Bonds since 1777, JAAA fell 3.2% then gained it back over 15 months. So that's the biggest downside risk. may be another good place to park some cash?
PULS SEC Daily Yield (Unsubsidized) as of yesterday 08/15/2025 is 4.48% per PGIM website JAAA per Janus website || || |(As of 07/31/2025)30-Day SEC Yield - Without Waivers |5.32%| JAAA will fall with FED Funds as well due to short term variable rate funding, JAAA is >95% AAA rated CLO with no AAA rated default in US history, and during 2022, worst year for Bonds since 1777, JAAA fell 3.2% then gained it back over 15 months. So that's the biggest downside risk. may be another good place to park some cash?
Nope. Not smart. Invest in almost anything and you can beat that. For example JAAA is highly rated AAA bonds that yields 5.76. Try out SPYI for 10% income or MAIN for growth plus income. So many options.
If you are willing to entertain some risk, you could look at CLOA (roughly 6% per year) or JAAA (similar).
HYSA, JAAA, or JBBB. I hold most of my money needed in the short term in JBBB. It pays about 7-8% with a monthly dividend, and the prices stay very stable. JAAA is the less volatile of the two, but only pays about 6%. Rate cuts are incoming, so those yields will go down as the loans in the portfolio mature.
I had started selling some SGOV the last month or so for TLT. the underlying value moves might be my "cash" soon. Up about 2.0% on that now. Might convert more SGOV to TLT on a pullback after today. Also have a little JAAA but just feeling it out. Haven't held it before.
JAAA or JBBB if you’re feeling a little frisky.
I'm in a similar position (less $$'s though) and I have that money split between most in SGOV and some in JAAA.
No, a lot of stuff is going down this week. The Fed meeting happens, and while it’s almost a lock that they won’t cut, people are wanting to see if they forecast anything or want the other Fed board members say or vote on. Secondly, the jobs report comes out as well. Lastly, it’s an important week for corporate earnings with Amazon, Apple, Meta and Microsoft. If above estimates and guidance is good, market up. If they underperform or cut guidance, then a drop may happen. While nobody knows from day to day, (I m an advisor and this market is not logical) especially with this admin, I would dollar cost average into the market and you can have the funds in a CLO ETF while waiting for 3 or 6 months. That way, it avoids market timing, which is my all VA’s (variable annuity) have that option to smooth out your average price. On CLO thing, JAAA or PAAA is safer or can go w/JBBB for interest, but it’s a little more volatile/risky as rating suggests.
I had a similar question the other day, it was deleted by mods but someone recommended JAAA and after looking into it I think it will do about 1.5% better than SGOV or a money market after taxes. Hope you extract some value from your post before it gets removed.
This is exactly what I would recommend OP do, but I answered JAAA/JBBB because of the ask.
JAAA. It’s a low risk fund made up of loans with AAA credit rating. Pays about 6% annual yield on a monthly basis. It’s very safe and conservative. I trust it more than treasury bonds. You can also try JBBB. A little more risk, but also more yield closer to 8% paid monthly.
JAAA pays 5.4% yield GDMN holds Gold and miners and pays 5.5% yield
Why does everyone seem to think there are no financial products between T-Bills and the S&P500? There are dozens of options, like AAA-rated CLOs or preferred equity like STRD, that provide return way better than the risk free rate while taking on only the slightest amount of risk. It has been *impossible* to sell something like $JAAA "at a loss" post-2008 GFC. It rally seems to me a bunch of nervous nellies trying to keep the rest of the crabs in the bucket. Sorry but my portfolios manage 30%+ returns every year and no weak minded person can convince me to waste my capital by letting ANY of it sit in a HYSA. You might think I'll get destroyed in a downtown, but I made money in 2022 and early this year as well. Whoops.
JAAA, and CLOZ if you prefer.
2% in JAAA and VTIP that I count as cash
7-10 years is a big time frame for a HYSA but a bit iffy for the S&P. If I were in your shoes and had any portion that was saved outside the emergency fund that I wanted to put towards the House, I might consider shopping around for a 5-6 yr CD as I’m expecting rates to drop. I could also consider going in with a low-to-medium risk corporate bond, something like JAAA or slightly more risky or with higher yield like JBBB. If I were to go into stocks, I’d probably look into something that uses an option strategy to limit potential losses. QQQH from Neos would be one I’d consider in your shoes.
ETFs that seem fairly common on reddit (SPYI, QQQI) are blocked. its allowed now, but i recall a time when JEPI/JEPQ were blocked. i recently wanted to add some CLO ETFs and almost all of those were blocked. JAAA is the only one i could buy in merrill.
I'm an IT guy myself, done coding and have a pretty good understanding, so I feel like I'm a good person for feedback! A few more thoughts: \* For the "Live Data" - A "Refresh" button perhaps? \* For the 'Call/Put', perhaps a "Buy/Sell"? I generally "Wheel" which this looks to be setup for, but would likely be useful for examining buying and selling Calls vs Puts (might as well cover it all), but I realize this is a free project your using for yourself lol and again, I mostly Wheel, sometimes buy calls, naturally bullish, having bought many puts, tried a bit recently w/ trump tariff stuff and got burnt. Honestly, If I'm not confident enough to be bullish, I buy SGOV/JAAA lol, but I digress. Really looking forward to seeing this when the PUT part works! Feel free to DM me if I can help or just to keep me updated as things progress...
I also prefer PAAA over JAAA. All those funds are more risky during SGOV. Expect volatility between 1-5% during a market crisis.
JAAA (tho I prefer the slightly less risky PAAA) is a solid choice, however it is not really an alternative to SGOV. It is low risk but in very bad times you could possibly even lose on your total return. In the moderate bad times year to date, JAAA is +1.63% versus SGOV's 1.63%. (PAAA is +1.90%.)
Yesterday's action was triggered by a massive selloff in AAPL after Jony Ive announced his merger with OpenAI (note the timing of AAPL's decline compared to the rest of the market). Then, numerous news items showed up, including a $16 billion 20-yr auction, and then, considering treasury yields, several institutions opted to exit. Now, it's not about the US not being a good credit risk. It's about bond investors expecting to receive higher returns because the credit risk is no longer as pristine as it once was. Your perception is on the right track, but keep those suggestions in mind. Also, keep an eye on the credit market. If JAAA or Munis start to move like meme coins again, that's when you run for the hills.
How will this affect ETFs like JAAA and JBBB?
JAAA >> CLO (NOT CDLs, different vehicles) AAA rated ftw on high holding yields
Appreciate the details about the default rates and risk. I was missing that. >What I have been doing is a money market for for Cash A mix of high yield stock dividend funds and loan obligations with a goal of about 10 separate funds. Like a mixture of VMFXX, SPYI/JEPI, and JAAA/CLOZ? Here is my updated scenario based on your info: name | old | new | change ----|---|---|------ SGOV | 50K | 40K | FLOT | 30K | 0K | dropped, underestimated JAAA's stability JAAA | 20K | 40K | CLOI | 20K | 0K | dropped, redundant JBBB | 10K | 0K | dropped, redundant CLOZ | 10K | 20K | SPYI | 0K | 40K | replaces some CLOs, tax efficient vs. JEPI/Q total | 140K | 140K | still 100K in fixed, now 40K in high-div. volatile stocks yield | 5.3% | 7.5% |
$JAAA, $BSV (short end corp plus government) and VGLT (lower fee TLT.) $BLV is long end corp plus govt. I bought some TMF today for a trade.
Forgot to mention that I plan to gradually move the JBBB, CLOZ, and CLOI (40K total) into VOO. That's the "play" money. For now, I want to keep them somewhere with better yields than SGOV. I know you're not supposed to time the market but I want to have that 40K in hand in case the market tanks later this year due to tariffs, inflation, job losses, or Elon Musk sniffing a bad batch of ketamine. It's fine if I'm wrong and miss out on larger gains. Personally I'd rather risk having smaller gains if it means having a chance to buy at a big discount. Basically, 100K will remain in what I assume are reasonably safe options: SGOV, FLOT, and JAAA. I have both FLOT and JAAA in the mix because they are built differently and presumably would behave differently under a stress. A further "diversification", if you will. The other 40K in cash, which I would not need to withdraw immediately and could wait longer for their prices to bounce back, would remain in these higher-yield places and eventually invested into VOO when there is a dip or bear. TLDR: If I wasn't so greedy I'd just store the "need ASAP" money into SGOV and the rest into stock ETFs, but I *want* to time the market and I want to keep the standby cash into a higher yield place the risk of which is reasonably managed.
I would put the 100k in SGOV (because that's your key amount). The rest you can just go 50% JAAA and 50% CLOI. I wouldn't personally go with your choices here. I have a similar need in one of my accounts so what I did was I put the needed money in short duration treasuries and the rest went to more complicated income etfs like SPYI.