1820: The Yield Shield: Preferred Shares by Wanderer of Millenial Revolution on Investing Strategies

Optimal Finance Daily - Financial Independence and Money Advice

Optimal Living Daily LLC

Self-improvement, Education, Business, Investing

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🗓️ 4 March 2022

⏱️ 12 minutes

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Summary

Wanderer of Millennial Revolution talks about preferred shares Episode 1820: The Yield Shield: Preferred Shares by Wanderer of Millenial Revolution on Investing Strategies Wanderer retired from his engineering job at a major Silicon Valley semiconductor company at the age of 33. He now travels the world seeking out knowledge from other wealthy people, so he can teach people how to become financially independent themselves. The original post can be seen here: https://www.millennial-revolution.com/invest/yield-shield/the-yield-shield-preferred-shares/ Visit Me Online at OLDPodcast.com Interested in advertising on the show? https://www.advertisecast.com/OptimalFinanceDaily Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	This is Optimal Finance Daily, Episode 1820.
0:04.3	The yield shield preferred shares by wanderer of millennial-revolution.com.
0:11.7	And I'm your host and personal finance enthusiast, Diana Mariam.
0:16.3	Before we get to it, have you subscribed to our other podcasts?
0:20.4	We cover personal development, minimalism, health, relationships,
0:25.1	entrepreneurship, and life advice on the other shows.
0:28.8	Just search for Optimal Living Daily, wherever you get your podcasts to find them.
0:33.7	But for now, let's get to today's post as we optimize your life.
0:42.6	The yield shield preferred shares by wanderer of millennial-revolution.com.
0:51.2	When you pull the trigger and retire, the biggest danger you need to worry about
0:55.6	is a sudden market crash right in your first few years that forces you to sell assets at the
1:02.3	exact wrong time. This is known as sequence of return risk. Today, we're going to talk about how
1:09.3	we actually did that. To recap, building a yield shield means one, swinging your overall equity
1:18.0	allocation towards fixed income. 6040 is the balance we chose.
1:24.0	And number two, shifting your fixed income portion towards higher yielding assets.
1:30.4	When you're accumulating, Bond's job is to reduce portfolio volatility,
1:36.0	because they tend to move in opposite directions with equities.
1:40.1	However, with interest rates so low as an income-producing asset, they don't pay too well.
1:47.0	As of the time of this writing, the Canadian Vanguard Bond ETF VAB has a 12-month
1:54.8	trailing yield of 2.8%. Not only that, with interest rates on the rise, we can expect bond prices
2:03.1	to get lower over time, which doubles sucks. So what should we use instead?
2:09.8	Today, I'm going to talk about one of the higher yielding assets we use in our retirement portfolio.
	...

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