Making the list of the Buy and Forget investment with monthly income in today's overpriced Market.

[troubled soul]

Basically I am making the list of the Investment that you can buy for life with monthly income.
Which is best for today's Overpriced Market ?
Do share your opinion for the Best Investment in Today's Overpriced Market .

Thanks

 

[LoveMyLife]

If you want some monthly income, there are just a few options:

1. CD with monthly interest payments in country with higher interest rates. Like Georgia, Mongolia, Armenia, etc..
2. Invest money in some private companies, where you will receive dividends on a monthly basis..

If you are willing to accept income not on a monthly period, and annual perios is OK, you can buy stocks of water pipeline companies in Asia and Latin america.

 

[rowena]

It depends on your risk appetite and investment horizon but no need to create a complicated/time-wasting structure.

Since you're looking for something for life, I assume you're not interested in high-risk investments(stocks, exotic currencies or countries, etc..). If you're ok with a yearly 10-15% return just buy VWRL ETF. It is a $8.3 billion valued, passively managed(lower fees) and very diversified(lower risk) fund. You can buy it via almost any broker.

 

[avalanche]

It depends on your risk appetite and investment horizon but no need to create a complicated/time-wasting structure.

Since you're looking for something for life, I assume you're not interested in high-risk investments(stocks, exotic currencies or countries, etc..). If you're ok with a yearly 10-15% return just buy VWRL ETF. It is a $8.3 billion valued, passively managed(lower fees) and very diversified(lower risk) fund. You can buy it via almost any broker.

I just looked into VWRL.. they look quite attractive however looking at this page Vanguard FTSE All-World UCITS ETF (GBP) ETF | IE00B3RBWM25, 55% of their funds are in the US stocks including Apple, Tesla, Microsoft, Amazon. Its definitely not "All World" as they claim especially for investors who want to diversify away from United States economy.

 

[rowena]

I just looked into VWRL.. they look quite attractive however looking at this page Vanguard FTSE All-World UCITS ETF (GBP) ETF | IE00B3RBWM25, 55% of their funds are in the US stocks including Apple, Tesla, Microsoft, Amazon. Its definitely not "All World" as they claim especially for investors who want to diversify away from United States economy.

Nope, it is truly All World fund. Countries weighted by their market-capitalization as they should and the USA is the biggest economy. This fund even includes emerging markets.

Also please note that, the fund is tracking the FTSE All-World benchmark it means the weight of the countries/companies not decided by the fund company. It only tracks the benchmark index.

 

[avalanche]

Nope, it is truly All World fund. Countries weighted by their market-capitalization as they should and the USA is the biggest economy. This fund even includes emerging markets.

Also please note that, the fund is tracking the FTSE All-World benchmark it means the weight of the countries/companies not decided by the fund company. It only tracks the benchmark index.

So in case Tesla starts correcting real fast, will VWRL suffer from the loss or the fund managers just close positions before it happens?

 

[rowena]

So in case Tesla starts correcting real fast, will VWRL suffer from the loss or the fund managers just close positions before it happens?

Nope, the fund managers will do nothing because it is a passive fund(not managed actively) and only follow the index also the index doesn't change often.

Any stock can go up or down sharply but if you invest in 3500 companies in 50 countries then the sharp movement of a single company doesn't matter. That's why it is a stable and excellent structure for long-term investments.

https://www.ftserussell.com/research/how-indexes-change

 

[avalanche]

Nope, the fund managers will do nothing because it is a passive fund(not managed actively) and only follow the index also the index doesn't change often.

Any stock can go up or down sharply but if you invest in 3500 companies in 50 countries then the sharp movement of a single company doesn't matter. That's why it is a stable and excellent structure for long-term investments.

https://www.ftserussell.com/research/how-indexes-change

Thanks for opening whole world of such funds for me. I've been looking for something with 10+% annually

 

[BlueMist]

Alternatively to VWRL if you want to add bonds 20%, Vanguard LifeStrategy 80% looks like excellent all rounder covering all world + bonds.

 

[rowena]

Alternatively to VWRL if you want to add bonds 20%, Vanguard LifeStrategy 80% looks like excellent all rounder covering all world + bonds.

Vanguard LifeStrategy funds are very good. They're easier to manage but suitable for specific country residents(because they're hedged and country-specific weighted).

 

[avalanche]

Alternatively to VWRL if you want to add bonds 20%, Vanguard LifeStrategy 80% looks like excellent all rounder covering all world + bonds.

I dont understand one thing: how bonds can be profitable these days? Aren't most of them bearing negative interest rates?

 

[BlueMist]

I dont understand one thing: how bonds can be profitable these days? Aren't most of them bearing negative interest rates?

Bonds are adding stability cushion to the portfolio in high market movements.

 

[bobby786]

It depends on your risk appetite and investment horizon but no need to create a complicated/time-wasting structure.

Since you're looking for something for life, I assume you're not interested in high-risk investments(stocks, exotic currencies or countries, etc..). If you're ok with a yearly 10-15% return just buy VWRL ETF. It is a $8.3 billion valued, passively managed(lower fees) and very diversified(lower risk) fund. You can buy it via almost any broker.

i am intrested to buy those VWRL ETF but i have never done it before , can you guide/help me that, i tried to PM you but it failed.

 

[JackAlabama]

Basically I am making the list of the Investment that you can buy for life with monthly income.
Which is best for today's Overpriced Market ?
Do share your opinion for the Best Investment in Today's Overpriced Market .

Thanks

You could try REITS.
You will have some inflation protection unlike fixed income debt instruments.
Oftentimes, REITS have inventory across 10+ different countries, so your real estate risk is spread out.

 

[JackAlabama]

I dont understand one thing: how bonds can be profitable these days? Aren't most of them bearing negative interest rates?

Only some. Corporate bonds especially from emerging markets provide positive yield. This is however vulnerable to inflation. So only bonds are not a good strategy and you should mix instruments.

 

[Silvio]

Long term buy & hold results. Granted this is only US and you need global diversification, investing only in the US is risky.

 

[rowena]

i am intrested to buy those VWRL ETF but i have never done it before , can you guide/help me that, i tried to PM you but it failed.

It is a very popular ETF. You can buy via almost all brokers(Interactive Brokers, Saxo, Swissqoute, etc...). If you don't know how to buy it check the bogleheads forum.