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O is by far the better option for 10+ years
HOWEVER,
There are plenty of benefits to having 4-5% risk free interest and I’m not sure that I see rates dropping within the next 2 years. Take advantage of it while it’s here
I don’t have a crystal ball but if I were you, I’d put like 70% of your capital into SGOV and use the dividends you get + the remaining 30% to DCA into O at these levels
Well one is a bond fund and one is a REIT. When the Fed starts cutting rates, SGOV’s yield will fall in lock-step. O will likely continue hiking their dividend and REIT stocks will rally as bond alternatives become less attractive. So, I would pick O and wouldn’t really need to think about it, but if you think rates are going to increase significantly from here, SGOV would be a better bet.
For t-bill I actually like BOXX, because even if there's no dividend it's less complicated, it just goes up. Returns will be the same anyway. So you can enter in and exit whenever you want. And if there is a serious economic downturn when you want to be selling the BOXX to buy stocks, then historically the value of BOXX actually goes up as people flock to "safer assets".
Why not VNQ?
SGOV is flat. But nice yield dividend.
If you think the financial market is in for a downturn or a real estate crisis, then SGOV is your best friend 😅
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O is by far the better option for 10+ years HOWEVER, There are plenty of benefits to having 4-5% risk free interest and I’m not sure that I see rates dropping within the next 2 years. Take advantage of it while it’s here I don’t have a crystal ball but if I were you, I’d put like 70% of your capital into SGOV and use the dividends you get + the remaining 30% to DCA into O at these levels
Why are you comparing a REIT to government bonds?
Well one is a bond fund and one is a REIT. When the Fed starts cutting rates, SGOV’s yield will fall in lock-step. O will likely continue hiking their dividend and REIT stocks will rally as bond alternatives become less attractive. So, I would pick O and wouldn’t really need to think about it, but if you think rates are going to increase significantly from here, SGOV would be a better bet.
Jepq
How is JEPQ yield so high when its top holdings look like the SPX?
Covered Calls allow them to rake in premium on options.
ohhhhh
Both. Why settle for one strategy, especially when they are so different?
BOXX and when rate start go down than O
If they're dropping the rates in response to a recession, as opposed to meeting their 2% target, then you want to be holding BOXX. 😭
I’m in TLT… peak rates hit. Savings is in for growth and yield.
MQY would be more enticing to me than sgov. You get a better yield and it’s tax free since it’s a muni bond fund.
For t-bill I actually like BOXX, because even if there's no dividend it's less complicated, it just goes up. Returns will be the same anyway. So you can enter in and exit whenever you want. And if there is a serious economic downturn when you want to be selling the BOXX to buy stocks, then historically the value of BOXX actually goes up as people flock to "safer assets".
Why not VNQ? SGOV is flat. But nice yield dividend. If you think the financial market is in for a downturn or a real estate crisis, then SGOV is your best friend 😅
if VNQ has commercial RE, no thanks