Best Long Term Investments
were can I get the best interest rate for long term investment?
I have $7500.00 that I would like to invest for a long term, at least ten years, although it is not wise to lock in for a long period because of the low rates, there must be somewhere I can at least get five percent, any suggestions?
It’s very hard right now to find a secure investment that pays a good rate of interest or dividends. Government securities, which are guaranteed, and certificates of deposit through a bank, which are insured, are paying almost nothing! If you’re willing to take some risk, there are company stocks that pay decent dividends.
I was just reading Dr. Stephen Leeb’s financial advisory letter, in which he lists his suggested “income portfolio” among other articles. I was surprised to see the high rates paid by a few companies. There’s a telecom company, Windstream (trading symbol WIN), whose common stock is currently yielding 10.9% according to Leeb, and there’s a limited partnership known as Penn Virginia Resource Partners (symbol PVR) that yields 12%! Both those stocks have lost value since they were recommended for purchase about 3 years ago, but the yield is based on their current market values.
Another of his recommendations, which I’ve heard recommended by other advisors too, is a mutual fund: Vanguard Inflation-Protected Securities Fund (symbol VIPSX). Its current yield is not shown, but it has increased in value since it was first recommended six years ago. It has produced an annual total return (dividends plus capital gains) averaging 4.42% over the past five years.
Maybe a good strategy would be to put a portion of your money into something stable and dependable like the mutual fund, and put another portion into the high-yield but riskier stocks. The more diversified your Investments, the more you balance the risks.
Long-Term Investment – Bloomberg