>>>My mom has a 6.5% CD that has matured and can't stomach 3% CD rates. I've told her that there is some yield out there but I couldn't reco anything beyond 7% due to credit risk. I'm looking at bonds of regulated utilities, like Southern Co., not the dereg stuff. Any thoughts appreciated. Thanks.>>>
I had a similar situation of dealing with an older relatives money for 30 years and in that case played it entirely different and as safely as possible. C/D's up to 18%, which drifted down in later years to 9%. No stocks, did not need stocks for excitement as she played the horses. Bonds would have been OK.
Stocks really went nowhere in those days.
I has an uncle once, lost all in 1929 and never bought stocks again. Built a Ford garage and finally sold it for
$1.5 mm. Retired with money in bonds and C/D's, took trips to Vegas and played craps for excitement.
( of course they both did far, far more interesting activities- I just mention the money aspect where neither had
any "worries" about money or poverty.) I guess you would say they had financial security which left them free
to enjoy other things.
I have two friends at present who have to deal with investments- both are seeking returns with security- both have looked at funds , stocks, bonds, or CD's and are unhappy with those returns. One has tried stocks three times this year and sold out three times at very fortunate times
With that experience and learning, this is his fourth try:(stocks that pay good dividends)
NNN,PEI,ESS,TCT, TMA,SFI,UHT
My guess would be that you could work out a comfortable portfolio with 40% company or utility bonds, 40% of these dividend paying stocks, and 20% of some stocks that could appreciate more. (and which we are looking for on this Thread((G)
Regards
Sig
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