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Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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what is the best way to achieve 8% yearly return

Resolved Question:

what is the best way to achieve 8% yearly return
Submitted: 7 years ago.
Category: Tax
Expert:  Merlo replied 7 years ago.
Hello sol,

With market conditions being in a depressed state, it is difficult right now to find many safe options where you might expect an annual return on your money of 8 percent. CD's and AAA bonds are paying more in the range of 2 to 4%.

However, there are still a number of stocks which are paying 8% or more as annual dividends. The only problem with investing in these stocks is that you always run the risk that the stock value itself may decline. However, the market does seem to be rebounding somewhat right now, so this may be something you want to consider.

Here is a link to a list of stocks that are currently paying between 8% to 9% annual dividends. As with any type of investing, you would want to research each company before investing, and also try to diversify your investments so they were not all held with one company. But these companies are paying dividends which would give you the yield you are looking for.

Another thing you may want to consider is opening and contributing to a Roth IRA account if you have earned income and are qualified to open this type of account. Your earnings in that account will all be tax free even when they are eventually withdrawn, so even if you have investments with a lower yield than 8%, the tax benefits help increase your botXXXXX XXXXXne.

If this was helpful please press the Accept button. Positive feedback is also appreciated.

Thank you sol.
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