Anyone w/Schwab or $ in USA getting a decent safe fixed rate of return? T-bills maybe?

Are there any "safe" returns other than those deposits up to ($250,000) protected by law in USA? Many platforms now allow cross border trading/deposits.  

 

Apologies but not USA, would be keen to learn if anyone has ideas for good UK returns? Best I've seen is 2 year fixed deposit at 4.81%. Minimum £1,000 but only £85,000 deposit protection, though with maximum deposit of £2 million. Other better options with no (or minimal) risk to capital/principal?

 

43 minutes ago, soi3eddie said:

 

would be keen to learn if anyone has ideas for good UK returns? Best I've seen is 2 year fixed deposit at 4.81%. Minimum £1,000 but only £85,000 deposit protection, though with maximum deposit of £2 million. Other better options with no (or minimal) risk to capital/principal?

 

moneysavingexpert.com shows the best rates which seems to be 4.86% for 3 year fixed

11 minutes ago, scubascuba3 said:

moneysavingexpert.com shows the best rates which seems to be 4.86% for 3 year fixed

Thanks was just on MSE. That's a long time to lock-in. The rate I was looking at was on Hargreaves Landsown. I've got a fund at 6%+ but risk to capital. It's difficult to know which way to go.

 

36 minutes ago, soi3eddie said:

Thanks was just on MSE. That's a long time to lock-in. The rate I was looking at was on Hargreaves Landsown. I've got a fund at 6%+ but risk to capital. It's difficult to know which way to go.

 

Funds definitely go down, but on the positive side markets are down so more upside, but if you buy Funds they could go straight down that's the risk

Three month t-bill is now above 4% but taxable unless in a Roth IRA.

https://ycharts.com/indicators/3_month_t_bill

 

Edited November 23, 20223 yr by Onerak

I put money into Peer-to-Peer platforms in Australia. No guarantee; however, the track record of the three I am in has been solid for about ten years. If they were dodgy, IMO the bubble would have burst by now.

As with everything else, the higher the return, the higher the risk. I lean towards conservative returns.

48 minutes ago, Onerak said:

Three month t-bill is now above 4% but taxable unless in a Roth IRA.

https://ycharts.com/indicators/3_month_t_bill

 

Good return for probably the safest investment there is...

25 minutes ago, Lacessit said:

I put money into Peer-to-Peer platforms in Australia. No guarantee;

Can I short this somehow? 

16 hours ago, soi3eddie said:

Thanks was just on MSE. That's a long time to lock-in. The rate I was looking at was on Hargreaves Landsown. I've got a fund at 6%+ but risk to capital. It's difficult to know which way to go.

 

This is the fund I always use which relates to Income. Orginally drawn to it for perhaps obvious reasons lol

Pays around 9% annually at the current unit price......I just reinvest the dividends each time but they are hefty.....quarterly divi payments

 

https://www.hl.co.uk/shares/shares-search-results/h/henderson-far-east-income-ltd-ord-npv

 

 

3 hours ago, Chivas said:

This is the fund I always use which relates to Income. Orginally drawn to it for perhaps obvious reasons lol

Pays around 9% annually at the current unit price......I just reinvest the dividends each time but they are hefty.....quarterly divi payments

 

https://www.hl.co.uk/shares/shares-search-results/h/henderson-far-east-income-ltd-ord-npv

 

 

Is this accessible from Schwab account in usa? 

check out the total return chart for that Henderson fund - I think you may be surprised , but not in a good way !

My guess FWIW would be one of the quality dividend growth ETFs such as GGRP or FUSI . i`m sure there are many more similar in the US .

20 minutes ago, persimmon said:

check out the total return chart for that Henderson fund - I think you may be surprised , but not in a good way !

 

Although the dividends look good, the fund value has decreased by 30% over the last 5 years.

 

3 hours ago, soi3eddie said:

Although the dividends look good, the fund value has decreased by 30% over the last 5 years.

 

Price or fund value? 

56 minutes ago, scubascuba3 said:

Price or fund value? 

Should have been clearer. Price down 30%. 

16 hours ago, soi3eddie said:

Should have been clearer. Price down 30%. 

So a poor total return.

 

If you plan to never sell the income is OK

9 minutes ago, TravelerEastWest said:

If you plan to never sell the income is OK

Never is a long time.. who can wait that long? 

 

Also, stock dividends can go up and down... and out.

i've been buying the ETF symbol BIL.  it buys short term US treasuries, 1 to 3 month maturities.  it yields over 3% now and should be higher soon as the purchases of 3 months ago mature and are renewed at higher rates.  i have an account with wells fargo in USA but i'm sure you can buy the same thing with schwab.

On 11/23/2022 at 7:30 PM, Lacessit said:

I put money into Peer-to-Peer platforms in Australia.

I have done the same in NZ and basically as I'm writing this, the first investment has come to fruition and the funds have been paid into my bank account, whilst the second investment is due to mature in one month, and the same thing will happen to that.

 

The rate was 6.5%, with interest paid monthly, secured against a registered property with a very low, loan to valuation ratio, secured through a lawyer, which gave the lawyer the right to liquidate the registered properly if the borrower defaulted on the repayments.

 

I will probably reinvest most of it through the same company, although I may keep some aside in a bank term deposit, just in case I need it in a hurry (yes I can break the term deposit, however I do lose some interest, but no big deal if the money is urgently needed).

 

It's quite probable that the new rate for this peer-to-peer lending will be 7.5% per annum, paid monthly, so food for thought.

1 hour ago, 1FinickyOne said:

Never is a long time.. who can wait that long? 

 

Also, stock dividends can go up and down... and out.

You are basically correct many people need to stay liquid with their investments - but some people mostly live off of income and rarely sell anything. When my kids inherit my estate they can decide then what they want to do, But I am happy with an income to live a simple life.

 

Good stocks don't normally stop paying dividends - I like to buy stocks with solid dividend payment records of at least ten years. 

 

Combined with diversification all is well.

On 11/24/2022 at 8:16 AM, soi3eddie said:

Although the dividends look good, the fund value has decreased by 30% over the last 5 years.

 

Indeed it has which as been fabulous lol because I've been loading heavily with further units.

Fully acknowledge your point though

I love that fund nonetheless !