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SPHIX. It pays a 6.7% yield and it pays monthly. It does have risk. but chart shows price is flat for 3 decades.
SPHIX needs to go...spread it to the contrafund. THe 500 should be the base investment while you are growing your money.
My sister is 73 and just came into 35k and she asked me. She is putting 10k in SPAXX so it gets good interest but is available and the rest in SPHIX so she will get a better return and should go up in value when share price increases when Powell lowers rates.
I have been retired, my thoughts are keep 3 years available in something liquid, mine are 50% SPAXX and with rates getting ready to go lower 50% in SPHIX. I left the rest in the market and I can liquidate more when the market is up.
6,000 in SPAXX currently @ 5% and 4,000 in SPHIX 30 day yield is 7.65% but if interest rates drop the share price will rise. Reinvest dividends
I would actually put 25% in SPHIX, not only a better rate but if rates drop, the share price increases. I just dropped an additional 25k in mine.
75% SPAXX and 25% SPHIX. SPHIX is a better interest rate but the share price fluctuates, should do well in an environment of interest rates going down.
You could look at SPHIX, as long as interest rates stay the same or go lower it would be good, not good in a rising rates environment
Move it into something that has a good return. We have an inherited IRA and it is in SPHIX, it is actually growing faster than the annual payout. There are risks in a rising interest environment.
> I found more users saying to invest in them later in life and that my goal right now should be targeted towards obtaining as much growth as possible. this line of reasoning is based on the assumption: "stocks for growth until close to retirement, then emphasize bonds for stability" the reality is "stocks for growth until close to retirement" is a form of market timing. the reality is bonds can outperform stocks for years at a time, stocks are not always the best performing asset class over long periods, and there's a place for bonds in every portfolio. reddit skews very young, and hasn't experienced a period where bonds beat stocks for several years. when it happens again, there will be widespread shock and consternation, weeping and wailing and gnashing of teeth, dogs and cats living together, mass hysteria. but if you've got even a bit in bonds, you gain some of the upside. - in 2000, 2001 and 2002 bonds beat the S&P 500 by over 20% each year. https://www.thebalancemoney.com/stocks-and-bonds-calendar-year-performance-417028 - bonds beat the S&P 500 from 2000 to 2020. https://www.nytimes.com/2020/05/01/business/bonds-beat-stocks-over-20-years.html - long-term US treasury bonds beat the US market 1981-2011, and 1968-2008. https://www.cbsnews.com/news/bonds-beat-stocks-over-30-years-so-what/ - three high-yield bond funds performed about as well as the US stock market over the long-term. VWEHX from Vanguard had a cumulative annualized return of 7.74% from 1978 inception. https://investor.vanguard.com/investment-products/mutual-funds/profile/vwehx#performance-fees FAGIX from Fidelity has a 9% annual average since 1977. https://fundresearch.fidelity.com/mutual-funds/performance-and-risk/316062108 EDIT SPHIX from Fidelity has averaged 7.5%/yr since 1999. https://fundresearch.fidelity.com/mutual-funds/performance-and-risk/316146406 - Jack Bogle of Vanguard recommended a *minimum* 20% bond allocation for all investors. “...why would an intelligent investor hold any bonds at all? First, because the long run is a series of short runs, and during many short periods, bonds have provided higher returns than stocks. In the 117 years since 1900, bonds have outpaced stocks in 42 years [37.5% of the time]; in the 112 five-year periods, bonds have outpaced stocks 29 times [25.9% of the time]; and even in the 103 fifteen-year periods, bonds have outpaced stocks 13 times. [12.6% of the time]”. from the 2017 edition of his book *The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns* numbers in [square brackets] are my calculations.
I typed this up for another question, so here's why everyone should consider bonds: reddit skews very young, and hasn't experienced a period where bonds beat stocks for several years. when it happens again, there will be widespread shock and consternation, weeping and wailing and gnashing of teeth, dogs and cats living together, mass hysteria. but if you've got even a bit in bonds, you gain some of the upside. - in 2000, 2001 and 2002 bonds beat the S&P 500 by over 20% each year. https://www.thebalancemoney.com/stocks-and-bonds-calendar-year-performance-417028 - bonds beat the S&P 500 from 2000 to 2020. https://www.nytimes.com/2020/05/01/business/bonds-beat-stocks-over-20-years.html - long-term US treasury bonds beat the US market 1981-2011, and 1968-2008. https://www.cbsnews.com/news/bonds-beat-stocks-over-30-years-so-what/ - three high-yield bond funds performed about as well as the US stock market over the long-term. VWEHX from Vanguard had a cumulative annualized return of 7.74% from 1978 inception. https://investor.vanguard.com/investment-products/mutual-funds/profile/vwehx#performance-fees FAGIX from Fidelity has a 9% annual average since 1977. https://fundresearch.fidelity.com/mutual-funds/performance-and-risk/316062108 EDIT SPHIX from Fidelity has averaged 7.5%/yr since 1999. https://fundresearch.fidelity.com/mutual-funds/performance-and-risk/316146406 - Jack Bogle of Vanguard recommended a *minimum* 20% bond allocation for all investors. “...why would an intelligent investor hold any bonds at all? First, because the long run is a series of short runs, and during many short periods, bonds have provided higher returns than stocks. In the 117 years since 1900, bonds have outpaced stocks in 42 years [37.5% of the time]; in the 112 five-year periods, bonds have outpaced stocks 29 times [25.9% of the time]; and even in the 103 fifteen-year periods, bonds have outpaced stocks 13 times. [12.6% of the time]”. *The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns* numbers in [square brackets] are my calculations.
Both of these are good options. I have used SPHIX as it pays a decent monthly dividend, but it is a little more risky.
[Pays a good dividend monthly.](https://finance.yahoo.com/quote/SPHIX?p=SPHIX)