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Is there a safe place in the market to park some cash and earn maybe 5% a year?

#1
Is there a safe place in the market to park some cash and earn maybe 5% a year.  Looking for something safe.  Bonds don't cut it.  Money markets pay hardly anything. Even tried MLP's with all the K schedule nonsense.  Most are down for the year.  Looking to save money to buy a retirement property in the next year. Need all the help I can get.
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#2
No. That kind of return requires risk. If you have the need to access the funds in 1 year, your choices are limited.
 
I know some people who will play the bonus game and open savings accounts to get the $500 - $1000 whatever bonus and then close the account 6 months later.
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#3
The previous post by YBserp hit the nail on the head. I'm confused by your question because the first sentence says one thing and the last one says "no risk."
1. Is there a safe place in the market to park some cash and earn maybe 5% a year?  - no risk?
2. "Even tried MLP's with all the K schedule nonsense." - risk!
 
Which is it? What do you mean by "risk?"
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#4
Everyone always talks about the market "tanking" as if that's a bad thing. If you wanted to buy a Ferrari and it was on sale for 50% off, you'd be jacked to the **** to get that thing.
 
Market corrections happen on average about once a year (a downturn of 10-20%) and a bear market happens on average about once every 5-8 years (a downturn of 20% or more). The market WILL "tank." But it will never last forever. The market will never go to zero and stay there. Every market crash that has ever happened was IMMEDIATELY followed by an explosive bull market.
 
Get in the market, STAY in the market, and forget about it. Obviously you need to diversify over different asset classes, don't just dump all your money in Apple or something. But stop trying to time the market. If you missed the 10 best trading days of the last 20 years, instead of having an 8.2% return, your return is 4.5%. If you miss the top 20 days, your return goes down to 2%. If you miss the top 30 days, you LOSE money.
 
Do this and you're set:
 
40% Long Term Treasuries - TLT
30% S&P 500 Index Fund - ITOT
15% Intermediate Term Treasuries - IEF
7.5% Commodities - BCI
7.5% Gold (or my personal preference - Bitcoin or Ethereum) - Use GDAX exchange (basically no fees trading)
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#5
(11-29-2018, 12:00 PM)Shiny Wrote: The previous post by YBserp hit the nail on the head. I'm confused by your question because the first sentence says one thing and the last one says "no risk."
1. Is there a safe place in the market to park some cash and earn maybe 5% a year?  - no risk?
2. "Even tried MLP's with all the K schedule nonsense." - risk!
 
Which is it? What do you mean by "risk?"

Ok I mean little risk.  Obviously if the market tanks everything is out the window.  Bonds should be no risk, but they haven't done much in the last few years.
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#6
If you want to see how asset classes interact long term try this little fun tool. 
https://portfoliocharts.com/portfolio/annual-returns/
There are so many different combinations to play with. Have fun.
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#7
(12-17-2018, 08:47 AM)SilverAg47 Wrote: If you want to see how asset classes interact long term try this little fun tool. 
https://portfoliocharts.com/portfolio/annual-returns/
There are so many different combinations to play with. Have fun.

I love this tool myself as well.  But please don't forget that past performance isn't an indicator of what may happen in the future. The creation of ETFs alone is known to have had some effects (positive and negative) on the market - particularly certain asset classes.  And no matter what, these tools are still for long term planning purposes - not what the value of an investment will be on a certain date.  At the end of the day, the original poster needs to rework how they think about investing, and this tool can help with that.
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#8
I never cease to be amazed at the misunderstanding of investing by the average investor. Your reply was spot on I couldn’t have possibly said it better. Get in the market stay in the market forget about it. I’ve been doing this for 40 years and it works like a charm.
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