Today, the 10-year Treasury pays just 2.3%. Put a million bucks in T-Bills, and you’re banking $23,000 per year. Barely above poverty levels!
Hence the appeal of closed-end funds (CEFs), which often pay 8% or better. That’s the difference between a paltry minimum-wage income of $23,000 on a million saved, or a respectable $80,000 annually.
And if you’re smart about your CEF purchases, you can even buy them at discounts and snare some price upside to boot!
Unfortunately this rising rate environment has income seekers scared of CEFs. Many of my readers have asked me if they should bail on our high paying vehicles.…