You’re Telling Me about 8% and Pickleball

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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.

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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.

To survive, you need the right plan. Signup for my Survive and Thrive newsletter to keep you on track each month.

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.

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E.J. Smith - Your Survival Guy

E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. His focus at all times is on preparing clients and readers for “Times Like These.” E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zildjians. He grew-up worshiping Neil Peart (RIP) of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris. Please get in touch with E.J. at ejsmith@yoursurvivalguy.com To sign up for my free monthly Survive & Thrive letter, click here.