Personal Finance News Wednesday 5/8

Phil's Personal Finance Tip of the Day:

10 Investment Ideas That Yield 10%+

Prepare to embrace the exotic (and plenty of risk) when you chase yield this far.

By Nellie S. Huang and Kathy Kristof, From Kiplinger's Personal Finance, June 2013

To get double-digit yields today, you’ll have to invest in the kinds of publicly traded stocks that rarely come up in cocktail-party conversation: mortgage REITs and business development companies. Both borrow at low short-term interest rates and lend at higher long-term rates, so their success depends on the Federal Reserve keeping short-term rates low. If short-term rates start to climb, shares of both mortgage REITs and BDCs are likely to tumble.

See Also: 45 Ideas for Getting More Yield

Analyst Merrill Ross, of Wunderlich Securities, in Memphis, Tenn., recommends Invesco Mortgage Capital (IVR, $22, 12.0%). Run by an affiliate of the Invesco mutual fund group, the REIT owns residential and commercial mortgages. About 70% of its investments are “agency” loans, those backed by the likes of the Government National Mortgage Association. A relatively high 17% of the portfolio is in higher-yielding but riskier non-agency loans, though rising property values mitigate some of the danger.

Read more at http://www.kiplinger.com/article/investing/T052-C000-S002-investment-ideas-that-yield-10-percent-and-more.html#QygMRi57r3625Jbu.99


Inspirational Quotes@Inspire_Us from Twitter:
Do what you can, with what you have, where you are. -Theodore Roosevelt

Hi my name is Philip J. Miano and I am the founder of PJM Personal Finance and Productivity Coaching specializing in Budgeting, Debt Reduction, Bank Reconciliations, Goal Setting, Time Management, and Organizational skills. Please visit my website: http://pjmcoaching.com.