On Mar 31, 4:02 am, raylopez99 <raylope...@[EMAIL PROTECTED]
> wrote:
> An investor I know wants to have income, capital preservation (very
> im****tant) and some small capital gains for $500k to be invested with
> a term of 3 years from today. Capital preservation is im****tant, much
> more so than capital gains.
Preservation of capital on an after-tax, after-inflation basis is very
difficult over a three-year period in the current environment. The
February COI-U (urban) was 4% above February last year. Assuming a 25%
tax rate, you would need a return of 5.33% in a taxable investment or,
obviously, 4% in a tax-exempt muni. I'm not aware of any type of
investment vehicle that will return that much over three years without
significant risk. Some equity exposure probably would be required.
Perhaps a ****tfolio with 20-30% equities, 40% bonds, and 30-40% cash
has as good a shot as any at achieving it.
Dave
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