The Nuveen Municipal Value Fund (NYSE: NUV), a closed-end fund (CEF), takes those benefits one step further.
BEST INVESTMENT RETURNS 2017 FREE
Muni bonds are free from federal - and in some cases, state and local - taxes, making them an excellent way to reap income without having to worry about the IRS.
One overlooked aspect of quality retirement investments is tax-efficiency, and that’s where municipal bonds can flex their muscle. The 10 Best Low-Cost Index Funds to Buy NowĪNGL has returned 9.3% annually since its inception in late 2012.īest High-Yield Investments for Retirement: Nuveen Municipal Value Fund (NUV).The $ 570 million ANGL holds 239 different bonds, three-quarters of which sit in BB (the top tier of junk) category, and about 20% of which have a B rating.īy betting on this segment of junk bonds, investors can enjoy a 5% yield while investing in debt that’s much higher than that of broader junk funds - thus, less risk of default and losses for investors. The VanEck Vectors Fallen Angel High Yield Bond ETF (NYSEARCA: ANGL) is the only ETF that bets on these types of bonds. That’s because the difference between the lowest tier of investment-grade and the highest tier of junk is basically negligible. “Fallen angels” are companies whose ratings have just dipped from investment-grade into junk status.įor retirement investors, these fallen angels can be an opportunity to pick up higher yield without as much risk. Most investors are familiar with “junk” debt - it’s low-rated debt that typically results in a company facing higher borrowing costs and bigger coupon payments on their bonds (thus, higher yield for investors). And TOT has more than proven that it’s willing to take the safe route to preserve the business and its income stream to shareholders.īest High-Yield Investments for Retirement: VanEck Vectors Fallen Angel High Yield Bond ETF (ANGL)Įxpenses: 0.35%, or $35 annually for every $10,000 invested Of course, with oil on the rebound, Total’s dividend is even more of a high-yield value.
That was ideal for TOT stock holders, many of whom rely on the 5%-plus dividend. As a result, Total’s cash flows didn’t suffer nearly as much as many of its peers. That reduction in spending allowed it coast through the malaise with ease. Sensing trouble ahead, Total’s management cut capital expenditures early on and completed projects just before oil prices crashed. Those assets have been performing better than many of its peers as of late, which is why it has handled the recent oil downturn so well. multinational Exxon Mobil Corporation (NYSE: XOM) listed as a great stock for retirement.īut you can do pretty well overseas, too.įrance’s Total SA (ADR) (NYSE: TOT) is about a third as big as Exxon Mobil in market capitalization ($125 billion) but still features a number of assets around the world, spanning major oil fields, pipelines and refining capacity. For instance, you’ll almost always see U.S. Their expansive and diversified asset bases make them great plays no matter what energy prices are doing. Investors typically will find significant dividends among the large, integrated oil companies. Best High-Yield Investments for Retirement: Total SA (ADR) (TOT)
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