VRIG
Invesco Variable Rate Investment Grade ETF
Mentions (24Hr)
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I can't tell you where ARKK will be in 2 years, but I can tell you that it is a high volatility etf. That means it might go up a lot or down a lot. What you're looking for is 20% in 2 years, or roughly 9.5%% per year. If you expect average returns over the next 2 years, the S&P500 and the NASDAQ would both do well enough and not expose you to a crazy amount of risk, but there is still the risk of the markets dropping substantially if things go downhill. The safest things you could put your money in would be etfs like SGOV, VRIG, and CSHI, but they're only going to return 3.5-5% per year which would result in you having closer to 275k than 300k. I think the best middle ground would be to play with housing etfs which is likely to have less beta compared to the price of the house you end up buying because it's in the same sector (Plus O has averaged around 13% per year since the year 2000). Additionally you could do something like XLP since it tends to do fairly well even when the markets pull back and also still makes around 6.5%/year on average. That being said, this is not financial advice and I am not a financial advisor. Do your own research and don't just blindly do what someone on reddit suggests.
I agree with your points. The only thing I would add is that $VRIG is a similar asset to $SGOV, it is 80% backed by TBILLs and 20% is high yield bonds, netting a 5% yield.
0% There will be some asset that is better to hold than cash. You truly think we’re heading for a bear market? Doom and gloom? Then buy a bond ETF. It’ll perform better than any savings account (I only consider junk bonds, if you’re doing safe bonds then just do $SGOV). There is no reason to have your money in a savings account. 4% yield right now can be accomplished with $SGOV. 5% can be accomplished with $VRIG. These are stable assets. How do you think the bank offers you 4%? Because they make 5% or more. They can just put your money into VRIG at no risk and take the profit. And you think you’re winning. No reason for savings account. My heavily liquid cash is in my checking account which sees movement constantly. The bank does nothing other than serve as a middle man between me and the next institution that will get my money. You can’t have transfers whenever you want in savings. It is genuinely useless and the only people who put their money there don’t know any better. Put it in a brokerage account. That way, when you want to invest, you don’t have to wait a week or two for the funds to settle. Be as active as you can and make your money work for you. There is always some way to make money in the market. If you’re not vigilant enough to find it, then just buy $VRIG.
VMRXX, in my opinion. I got creamed by indexed bonds, nominal and TIPS in the last few years, and have vowed not to do that again. Right now for fixed income I like cash, VRIG, and JAAA. All short term, good quality, and higher yields than other bonds. Both funds have low Beta (volatility).
A couple of good short duration, high quality bond funds are VRIG and JAAA. Low risk (i.e. low beta), and have higher yields than MMs or CDs. I have quite a bit in these two now, money I used to have as cash in Vanguard MM fund. I also have a couple safe preferred stocks yielding about 8%, and I purchased at discount to par. These preferreds are \*sort\* of a bond proxy. My very investment savvy son-in-law, an MBA, did a deep dive into all these investments, gives his approval, and owns a couple himself. Dude had articles published on a prominent investing website at just age 28-30, and I trust his advice.
I am not a financial adviser, so make sure to talk to a financial adviser before making any decisions Step 1: A 9 month emergency fund, and if feasible, either buy a home or pay off your mortgage. Step 2: Roth IRA and Custodial accounts for your kids. Try and get an custodial broker account up to 20/30k to take full advantage of kiddie tax(free $2,500) moving it to a custodial savings accounts, or the kid turns 15. Step 3: Maxed out Roth? I guess start a normal investment account. A simple portfolio would be 60% VTI and 40% BIL(60/40 stocks bonds), but fitting 10% GLD could help with inflation. An aggressive account could be 60% NTSX, 10% GLD, 20% VGSH, 10% VRIG. NTSX is 90% stocks and 10% treasury futures with 6x leverage, so it's effectively 90/60 stocks/bonds. There is more risk in using leverage.