Quote:
Originally Posted by ChipsAhoya
I mean that's not really the case. Plenty of BB-rated bonds out there or bank preferred stocks yield 6%-7%. If he wants 7% he can try to find it or ask others to.
With bonds expiring in ~10 years with a yield to maturity of 7%, you're talking about an investment that will yield 7% the vast majority of the time, but with a small but significant risk of defaulting. Putting all the money in such bonds is going to be a much less efficient investment than a balanced portfolio of bonds and equities.
A balanced equity/fixed income index portfolio is going to be the best bet unless you have very specific risk preferences/requirements.
Since OP can't get 7%/year guaranteed, the best general advice is a balanced index fund/ETF portfolio. He'd need to provide more specifics about the return profile he's aiming for to get better advice.