can i get a steady safe return of 15 percent on my ira?

Question

when i retire and roll my 401k over to an ira i would like to draw down 10 percent a year from the account but i would like to have the money invested so that it would return more than 10 percent so that we could leave money behind when we die..thanks bill

Answer 1

There is no such thing as a "steady" "safe" return of 15% a year on any investment including an IRA.

There is no "safe" return on anything (except a CD in a bank, which I would not recommend).

You need to do one of two things;
Take your funds to a brokerage like Schwab or Fidelity
or
Have a well respected financial counselor assist you (after interviwing at least four).

Before you do either you need to learn about "asset allocation" and retirement investing..

Seeking a 15% return will almost certainly guarantee you some major disapointments in the future.

Consider yourself warned.

Answer 2

The days of 15% safe returns are gone, in fact a money manager who earned 15% per year would at this point be paid hundreds of millions of dollars per year. The very best hedge fund managers are lucky to make 10% per year on a regular basis.

The only truly safe asset is short term government backed bills, which, unfortunately, only pay low single digits (the current financial market turmoil is causing a squeeze in that market and those bills only pay about 2% annualized now).

You need to decide which you prefer more, the "safe" return or the 15% return. If you're after safety, buy government bonds or goverment bond mutual funds and take your 4.5%. If you really want to swing at the ball and try for 15%, you'll have to take more equity risk.

My guess, since you're drawing on the account, you're already retired and can't take the risk of loss on your capital and should stick closer to the safe side of the asset spectrum.

Good luck.

Answer 3

Look at the yields on the following stocks & funds: PGH, CNE, PWE, CSE, RSF.
Not all are appropriate for a tax qualified account, but all are currently yielding 15+%.
Do your due diligence...

Answer 4

no...unless yoiu went very risky...dont do it...you have worked too hard for your money to see it slip away becasue you were a bit greedy...currently, some safe bond funds are paying around 7%

Answer 5

No.