Personal Finance and Investing

bucolic_frolic

(48,319 posts)

2. That's not bad if inflation doesn't pass 7% annually

Thu Mar 10, 2022, 02:09 PM

Mar 2022

Of course there are taxes to pay.

Personally, super or high dividend stock ETF's that write options against an index and pay monthly have some appeal when used with a DRIP Dividend Reinvestment Plan. In a market crash these can briefly get dirt cheap and yield 7-12% of the purchase price. As shares accumulate, the % yield on the original investment trends upward. But of course cash is not being pulled from them, they are reinvested. They also have exposure to the stock market - indexes, or more broadly. So the principle could go up or down.

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Doesn't this seem like it is too good to be true? [View all] NeoConsSuck Mar 2022 OP

Ahh, you forgot, money makes money.... Dan Mar 2022 #1

That's not bad if inflation doesn't pass 7% annually bucolic_frolic Mar 2022 #2

I have two of them NeoConsSuck Mar 2022 #6

This isn't making sense to me. A HERETIC I AM Mar 2022 #3

My assumption was five years of interest @ 5% a year. NeoConsSuck Mar 2022 #4

OK...fine...I see why you worded it the way you did. A HERETIC I AM Mar 2022 #7

I think he's assuming 5% per year bucolic_frolic Mar 2022 #5

I bought one last year and one this year. The problem doc03 Mar 2022 #8

There is also no state or local tax on them. You aren't doc03 Mar 2022 #9

Because stocks return less than 5% a year. PoindexterOglethorpe Mar 2022 #10

I am 74 years old, from what I have read at my age you should have no more than 40-45% doc03 Mar 2022 #11

I am 73 years old myself. PoindexterOglethorpe Mar 2022 #12

He is talking about US government I Bonds. I Bonds interest is based on the inflation rate doc03 Mar 2022 #13