4 Smart Retirement Buys for 7.2% Dividends and Big Gains

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By Michael Foster

Today IaEURtmm going to show you 4 funds that, when put together, give you a juicy 7.2% dividend yield.

And thataEURtms just the start. In addition to giving you $595 per month in income for every $100,000 invested, this aEURoeinstantaEUR 4-fund portfolio gives you diversification that limits your risk of losing cash in a market downturn.

Oh, and there is capital gains upside here for you, too.

The reason for that upside is that all of these funds are trading at a pretty big discount to their net asset value ( NAV ).

Let me explain.

Each of these picks is a aEURoe closed-end fund ,aEUR a unique type of fund that has a few key advantages over more familiar mutual funds and exchange-traded funds. A big one is that CEFs canaEUR"and very often doaEUR"trade on the market at a price that is below the actual market price of all of the assets inside the CEF.

How is this possible?

It boils down to this: CEFs set how many shares are in the fund when they do an initial public offering and donaEURtmt release new shares in the future. That weird mechanism means funds will often trade for less than their NAVaEUR"and those discounts can be really big.

Which brings me toaEUR

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Options
Referenced Symbols: NAV , RFI , NAD , HYI , NIE

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