NEW YORK, Dec. 02, 2020 (GLOBE NEWSWIRE) — Guggenheim Energy & Income Fund (the “Fund”) (XGEIX) announced today a tender offer to purchase for cash… To get an idea of how much you need to invest each month, Dough Roller shows you how to calculate and tailor your investing goals. Alpine Income Property Trust (NYSE:PINE) and Federal Realty Investment Trust (NYSE:FRT) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, earnings, valuation, institutional ownership, risk, profitability and analyst recommendations. Dividends Alpine Income Property Trust pays an annual dividend of $0.80 per […] UBS Asset Management Americas Inc. lifted its stake in shares of Realty Income Co. (NYSE:O) by 8.4% during the 3rd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 2,520,633 shares of the real estate investment trust’s stock after purchasing an additional 194,972 shares […] Latest News
NEW YORK, Dec. 02, 2020 (GLOBE NEWSWIRE) — Guggenheim Energy & Income Fund (the “Fund”) (XGEIX) announced today a tender offer to purchase for cash up to 2.5% of the Fund’s issued and outstanding common shares of beneficial interest (“common shares”). The tender offer will be conducted at a price equal to the Fund’s net asset value per common share on the date on which the tender offer expires. The Fund intends to commence the tender offer on or about Wednesday, December 2, 2020, with the expiration of the tender offer currently expected to take place on Monday, January 4, 2021 at 5:00 p.m., Eastern Time, unless otherwise extended.
The tender offer will be made, and the shareholders of the Fund will be notified, in accordance with the Securities Exchange Act of 1934, as amended, the Investment Company Act of 1940, as amended, and other applicable rules and regulations. The tender offer described in this announcement has not yet commenced. This announcement is not an offer to purchase or a solicitation of an offer to buy shares of the Fund. The tender offer will be made only by an Offer to Purchase, a related Letter of Transmittal, and related documents. As soon as the tender offer commences, the Fund will file a tender offer statement on Schedule TO with the SEC, which will include an Offer to Purchase and related Letter of Transmittal. SHAREHOLDERS OF THE FUND SHOULD READ THESE DOCUMENTS BECAUSE THEY CONTAIN OR WILL CONTAIN THE TERMS OF THE TENDER OFFER. Documents filed with the SEC are available to investors for free at the SEC’s website (http://www.sec.gov).
Questions regarding the Tender Offer may be directed to Georgeson LLC, the information agent for the tender offer, at (888) 565-5190.
About Guggenheim Investments
Guggenheim Investments is the global asset management and investment advisory division of Guggenheim Partners, LLC (“Guggenheim”), with $233 billion* in assets under management across fixed income, equity, and alternative strategies. We focus on the return and risk needs of insurance companies, corporate and public pension funds, sovereign wealth funds, endowments and foundations, consultants, wealth managers, and high-net-worth investors. Our 300+ investment professionals perform rigorous research to understand market trends and identify undervalued opportunities in areas that are often complex and underfollowed. This approach to investment management has enabled us to deliver innovative strategies providing diversification opportunities and attractive long-term results.
Guggenheim Investments includes Guggenheim Funds Investment Advisors, LLC (“GFIA”) and Guggenheim Partners Investment Management, LLC (“GPIM”). GFIA serves as Investment Adviser for XGEIX. GPIM serves as Investment Sub-Adviser for XGEIX.
* Assets under management as of 09.30.2020 and include leverage of $14bn. Guggenheim Investments represents the following affiliated investment management businesses of Guggenheim Partners, LLC: Guggenheim Partners Investment Management, LLC, Security Investors, LLC, Guggenheim Funds Distributors, LLC, Guggenheim Funds Investment Advisors, LLC, Guggenheim Corporate Funding, LLC, Guggenheim Partners Europe Limited, GS GAMMA Advisors, LLC, and Guggenheim Partners India Management.
This information does not represent an offer to sell securities of the Fund and it is not soliciting an offer to buy securities of the Fund. An investment in the Fund involves a high degree of risk. The Fund should be considered an illiquid investment. The Fund does not intend to apply for an exchange listing, and it is highly unlikely that a secondary market will exist for the purchase and sale of the Fund’s common shares. You could lose some or all of your investment. An investment in the Fund is not appropriate for all investors and is not intended to be a complete investment program. The Fund is designed as a long-term investment for investors who are prepared to hold the Fund’s common shares until the date of the Liquidity Event, and is not a trading vehicle. All investments are subject to risk, including possible loss of principal. Fixed income securities are subject to numerous risks, including but not limited to: credit, inflation, income, prepayment and interest rates risks. As interest rates rise, the value of fixed income securities fall. The Fund may invest without limitation in high-yield (“junk bonds”). High yield bonds (“junk bonds”) are subject to higher credit risk and a greater risk of default. The Fund may invest all or a portion of its Managed Assets in illiquid securities. The Fund may make significant investments in securities for which there are no observable market prices; the prices of which must be estimated by the investment adviser. Investments in foreign securities involve risks, including the possibility of losses due to changes in currency exchange rates and negative developments in the political, economic or regulatory structure of specific countries or regions. These risks are greater in emerging markets. Leverage may result in greater volatility of net asset value (NAV) of common shares and increases a shareholder’s risk of loss. Derivative instruments can be illiquid, may disproportionately increase losses and have a potentially large impact on Fund performance. Distributions are not guaranteed and are subject to change.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of any investment before they invest. For this and more information, visit www.guggenheiminvestments.com or contact a securities representative or Guggenheim Funds Distributors, LLC 227 West Monroe Street, Chicago, IL 60606, 800-345-7999.
William T. Korver
Not FDIC-Insured | Not Bank-Guaranteed | May Lose Value
Member FINRA/SIPC (12/20) 45951
New York, New York, UNITED STATES
Author: Guggenheim Investments
How Much Should I Invest? Create Precise Monthly Investment Goals
Editor’s note – You can trust the integrity of our balanced, independent financial advice. We may, however, receive compensation from the issuers of some products mentioned in this article. Opinions are the author’s alone, and this content has not been provided by, reviewed, approved or endorsed by any advertiser.
To get an idea of how much you need to invest each month, Dough Roller shows you how to calculate and tailor your investing goals.
When personal finance experts and gurus are asked how much someone needs to invest each month to retire comfortably, you’ll often hear percentages given as answers. For example, many will recommend investing 10% to 15% of your take-home pay.
And while there is beauty in the simplicity of this kind of generalized advice, it’s also not very precise. In your specific situation, investing 10% of your take-home pay may be too much. And, for others, it may not be nearly enough.
To get a more specific idea of how much you need to invest each month, you’ll need to think through a few more variables. Let’s take a look at how to calculate more precise investing goals that are tailored to your situation and needs.
Here are three steps to take to find your target monthly investing amount.
To know how much you should invest today, you’ll need to think through what would be your ideal annual income from your investments. For sake of simplicity in this guide, we’re going to assume that you want to fully replace your working income in retirement.
Next, apply the 4% rule to determine how much money you’ll need to have saved by retirement to reach your income goal. The 4% rule states that, in most cases, retired investors who withdraw 4% or less of their total assets in a given year will never deplete their balance.
It’s important to point out the 4% rule is not a law or guarantee. However, back-test studies of the market have repeatedly shown that if you follow the 4% rule, the chances are very low that you will outlive your money.
Using the 4% rule, if you want an annual retirement income of $40,000, you’ll need to save $1 million. And if you want to spend $100,000 per year in retirement (while following the 4% rule), you’d need a starting account balance of $2.5 million.
Related: How Will COVID-19 Affect the 4% Rule
Finally, you can use an investing or retirement calculator to see how much you’ll need to put away each month to reach your savings target by your retirement date.
To use a retirement calculator, you’ll need to estimate your annualized rate of return. The S&P 500 has averaged a 10% rate of return over its entire history, so that’s a great place to start. However, you’ll also want to consider your tolerance for risk.
If you prefer a highly conservative portfolio, you may want to estimate a lower rate of return. On the other hand, aggressive investors may want to estimate higher returns than the overall market. Also, some of the best calculators, like the one offered by Personal Capital, can run Monte Carlo simulations against thousands of market scenarios.
If you’ve already put some money away for retirement, you’ll want to take that into consideration as well. With most retirement calculators, there will be a field where you can enter your starting balance. These are our 11 favorite retirement calculators.
Ready to get your finances on track? Personal Capital’s free financial dashboard is our favorite tool to track your cash flow and calculate your net worth. Link your accounts and keep up with your money all in one beautifully presented and easy-to-read dashboard.
Using the instructions described above, we’ve created charts that show how much you should be investing each month if you make $25,000, $50,000, $75,000, $100,000, and $250,000. Again, these numbers are based on the assumption that you want to fully replace your income in retirement.
These charts also compare a 5% versus 10% annual rate of return and shows how much you’d need to save if you started at 20, 30, 40, or 50 years of age (assuming a retirement age of 65).
As is clearly shown below, the higher your rate of return and the earlier that you start putting money away towards retirement, the less money you’ll need to invest on a monthly basis.
Using the 4% rule, you’d need a savings balance of $625,000 to fully replace a $25,000 annual income throughout retirement. Here’s how much you’d need to invest each month to hit your retirement savings goal on time (rounded up to the nearest $10).
Using the 4% rule, you’d need a savings balance of $1.25 million to fully replace a $50,000 annual income throughout retirement. Here’s how much you’d need to invest each month to hit your retirement savings goal on time (rounded up to the nearest $10).
Using the 4% rule, you’d need a savings balance of $1.88 million to fully replace a $75,000 annual income throughout retirement. Here’s how much you’d need to invest each month to hit your retirement savings goal on time (rounded up to the nearest $10).
Using the 4% rule, you’d need a savings balance of $2.5 million to fully replace a $100,000 annual income throughout retirement. Here’s how much you’d need to invest each month to hit your retirement savings goal on time (rounded up to the nearest $10).
Using the 4% rule, you’d need a savings balance of $5 million to fully replace a $200,000 annual income throughout retirement. Here’s how much you’d need to invest each month to hit your retirement savings goal on time (rounded up to the nearest $10).
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In the examples above, we assumed that you would need 100% of your working income replaced in retirement. But, in reality, that may not be the case. Just because you make $200,000 per year now doesn’t necessarily mean that you’ll need that much annual income to enjoy a comfortable retirement.
Conversely, some people may plan to increase their standard of living in retirement to accommodate more travel.
Here are a few other variables that can affect how much you need to invest per month:
- Target retirement age: If you plan to retire early (like many members of the FIRE movement), you may need to save significantly more per month. And the opposite could be true if you plan to work till age 70 or older.
- Taxes: Currently, you have to pay taxes on your working income. But if you’re able to shield a large portion of your retirement income inside an IRA, 401(k), or other retirement account, that reduces the amount you’ll need to save to replace your take-home pay.
- Social security: Expected Social Security payments are one of the reasons that many experts recommend that you aim to replace 70% to 80% of your working income instead of the full amount. In January 2020, the average Social Security monthly benefit was $1,503. Estimate your Social Security benefits.
- Additional income: Will you have any supplemental income in retirement, like from a rental property or a part-time job. If so, this could significantly reduce your retirement number and the amount you need to save per month.
If you’d like professional help with calculating how much you should be investing for retirement, you may want to consider setting up an appointment with a Certified Financial Planner (CFP).
If you’re not sure where you start with investing, be sure to check out our complete guide. You may also want to take a look at our top stock brokers and robo-advisors of 2020.
Finally, it should be noted that many people can’t invest as much as they’d like due to hefty debt payments or other financial constraints. That’s okay! Just start with an amount that you can afford, even if it’s just $25 per month or less.
Check out our favorite micro-investing apps.
Also Read: How to Invest with Little Money
Head to Head Contrast: Federal Realty Investment Trust (NYSE:FRT) & Alpine Income Property Trust (NYSE:PINE)
Alpine Income Property Trust (NYSE:PINE) and Federal Realty Investment Trust (NYSE:FRT) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, earnings, valuation, institutional ownership, risk, profitability and analyst recommendations.
Alpine Income Property Trust pays an annual dividend of $0.80 per share and has a dividend yield of 5.0%. Federal Realty Investment Trust pays an annual dividend of $4.24 per share and has a dividend yield of 4.8%. Federal Realty Investment Trust pays out 67.0% of its earnings in the form of a dividend. Alpine Income Property Trust has increased its dividend for 1 consecutive years and Federal Realty Investment Trust has increased its dividend for 48 consecutive years.
Insider and Institutional Ownership
56.3% of Alpine Income Property Trust shares are held by institutional investors. Comparatively, 83.9% of Federal Realty Investment Trust shares are held by institutional investors. 0.4% of Alpine Income Property Trust shares are held by company insiders. Comparatively, 0.9% of Federal Realty Investment Trust shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This table compares Alpine Income Property Trust and Federal Realty Investment Trust’s net margins, return on equity and return on assets.
This is a breakdown of current ratings and recommmendations for Alpine Income Property Trust and Federal Realty Investment Trust, as reported by MarketBeat.com.
Federal Realty Investment Trust has a consensus price target of $87.64, suggesting a potential upside of 0.05%. Given Federal Realty Investment Trust’s higher possible upside, analysts clearly believe Federal Realty Investment Trust is more favorable than Alpine Income Property Trust.
Earnings and Valuation
This table compares Alpine Income Property Trust and Federal Realty Investment Trust’s top-line revenue, earnings per share and valuation.
Federal Realty Investment Trust has higher revenue and earnings than Alpine Income Property Trust.
Federal Realty Investment Trust beats Alpine Income Property Trust on 9 of the 11 factors compared between the two stocks.
About Alpine Income Property Trust
Alpine Income Property Trust, Inc. is a publicly traded real estate investment trust that acquires, owns and operates a portfolio of high-quality single-tenant net leased commercial income properties.
About Federal Realty Investment Trust
Federal Realty is a recognized leader in the ownership, operation and redevelopment of high-quality retail-based properties located primarily in major coastal markets from Washington, D.C. to Boston as well as San Francisco and Los Angeles. Founded in 1962, Federal Realty’s mission is to deliver long-term, sustainable growth through investing in densely populated, affluent communities where retail demand exceeds supply. Its expertise includes creating urban, mixed-use neighborhoods like Santana Row in San Jose, California, Pike & Rose in North Bethesda, Maryland and Assembly Row in Somerville, Massachusetts. These unique and vibrant environments that combine shopping, dining, living and working provide a destination experience valued by their respective communities. Federal Realty’s 104 properties include approximately 2,800 tenants, in 24 million square feet, and approximately 2,800 residential units. Federal Realty has increased its quarterly dividends to its shareholders for 53 consecutive years, the longest record in the REIT industry. Federal Realty is an S&P 500 index member and its shares are traded on the NYSE under the symbol FRT.
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Author: George Bondi
Realty Income Co. (NYSE:O) Shares Bought by UBS Asset Management Americas Inc.
UBS Asset Management Americas Inc. lifted its stake in shares of Realty Income Co. (NYSE:O) by 8.4% during the 3rd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 2,520,633 shares of the real estate investment trust’s stock after purchasing an additional 194,972 shares during the period. UBS Asset Management Americas Inc. owned 0.72% of Realty Income worth $153,128,000 as of its most recent SEC filing.
Several other hedge funds also recently bought and sold shares of O. Vanguard Group Inc. grew its holdings in shares of Realty Income by 0.6% in the second quarter. Vanguard Group Inc. now owns 54,878,773 shares of the real estate investment trust’s stock valued at $3,265,287,000 after purchasing an additional 348,798 shares during the period. BlackRock Inc. raised its holdings in Realty Income by 0.8% in the 3rd quarter. BlackRock Inc. now owns 32,250,320 shares of the real estate investment trust’s stock valued at $1,959,206,000 after buying an additional 244,870 shares during the period. Nuveen Asset Management LLC lifted its position in Realty Income by 34.9% in the second quarter. Nuveen Asset Management LLC now owns 3,517,503 shares of the real estate investment trust’s stock valued at $209,291,000 after buying an additional 910,332 shares during the last quarter. Charles Schwab Investment Management Inc. boosted its stake in Realty Income by 96.9% during the second quarter. Charles Schwab Investment Management Inc. now owns 2,923,338 shares of the real estate investment trust’s stock worth $173,939,000 after buying an additional 1,438,765 shares during the period. Finally, Bank of New York Mellon Corp increased its position in shares of Realty Income by 2.6% during the second quarter. Bank of New York Mellon Corp now owns 2,900,341 shares of the real estate investment trust’s stock valued at $172,569,000 after acquiring an additional 73,585 shares during the last quarter. Institutional investors and hedge funds own 73.52% of the company’s stock.
Several research firms recently weighed in on O. Scotiabank upgraded shares of Realty Income from a “sector perform” rating to a “sector outperform” rating and lifted their target price for the company from $66.00 to $72.00 in a report on Friday, October 9th. Mizuho increased their target price on Realty Income from $58.00 to $64.00 and gave the stock a “buy” rating in a research note on Tuesday, September 29th. Morgan Stanley boosted their price target on shares of Realty Income from $60.00 to $64.00 and gave the stock an “overweight” rating in a research note on Friday, August 21st. UBS Group began coverage on shares of Realty Income in a report on Friday, October 16th. They issued a “buy” rating and a $72.00 price objective for the company. Finally, Royal Bank of Canada reissued a “hold” rating on shares of Realty Income in a research report on Friday, August 28th. Three equities research analysts have rated the stock with a hold rating and eleven have issued a buy rating to the company’s stock. The company has an average rating of “Buy” and a consensus price target of $67.77.
O opened at $60.37 on Wednesday. The company has a quick ratio of 2.94, a current ratio of 4.77 and a debt-to-equity ratio of 0.80. Realty Income Co. has a 52 week low of $38.00 and a 52 week high of $84.92. The business’s 50 day moving average is $60.61 and its two-hundred day moving average is $60.32. The firm has a market cap of $21.19 billion, a price-to-earnings ratio of 49.89, a price-to-earnings-growth ratio of 5.23 and a beta of 0.65.
Realty Income (NYSE:O) last announced its earnings results on Saturday, November 7th. The real estate investment trust reported $0.07 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.35 by ($0.28). Realty Income had a return on equity of 3.96% and a net margin of 24.94%. The business had revenue of $404.60 million for the quarter, compared to analysts’ expectations of $402.71 million. During the same quarter last year, the business posted $0.83 earnings per share. The business’s revenue was up 8.1% on a year-over-year basis. Equities analysts expect that Realty Income Co. will post 3.38 EPS for the current fiscal year.
The firm also recently disclosed a nov 20 dividend, which will be paid on Tuesday, December 15th. Shareholders of record on Tuesday, December 1st will be paid a $0.234 dividend. The ex-dividend date of this dividend is Monday, November 30th. This represents a yield of 4.5%. Realty Income’s dividend payout ratio is presently 84.64%.
About Realty Income
Realty Income, The Monthly Dividend Company<sup>Â®</sup>, is an S&P 500 company dedicated to providing stockholders with dependable monthly income. The company is structured as a REIT, and its monthly dividends are supported by the cash flow from over 6,500 real estate properties owned under long-term lease agreements with commercial tenants.
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Author: Denise Davis
How to Finance a Real Estate Investment Without a Stable Income – Wealth Creation Investing
When it comes to financing investment properties, lenders will want to look at various information about you and the property in order to see if they can justify making the loan. And a look at the borrower’s income and employment history is often a big part of it.
This might not sound like a big deal if you have a steady paycheck from a job you’ve worked at for several years, but not everyone falls into this category. What if you own your own business or are a freelancer? Or what if you work for an employer, but your income is largely based on commissions or tips? In this article, we’ll discuss what implications this has when trying to obtain conventional financing for investment properties, as well as the main alternative to consider.
If you’re self-employed, own your own business, or work a commission-based job, your income is probably less consistent than the average 9-to-5 employee.
If you’re buying an investment property by yourself (as opposed to with partners), obtaining a conventional mortgage — one that meets Fannie Mae (OTCMKTS: FNMA) or Freddie Mac‘s (OTCMKTS: FMCC) lending standards — can be the preferable way to go. These loans tend to have the best interest rates and repayment terms, as compared to asset-based investment property loans (more on that in a bit).
The problem with conventional financing is that it’s income-based, meaning your income must be sufficient (and consistent) enough to justify not only the mortgage payments but your other debts as well. This can be a major obstacle for investors, as your income must be enough to justify the payments on your primary home as well as the investment property.
Specific requirements depend on your situation, but just to name one example from the latest Fannie Mae Eligibility Matrix, an investor purchasing a two-unit (duplex) property would need a 25% down payment, as well as a debt-to-income ratio of less than 45% if they have a credit score of 680 or higher.
Now, when it comes to inconsistent sources of income like self-employment or commission-based sales, lenders have different methods of determining your income for qualification purposes. For example, my last lender looked at a two-year average of my self-employment income. As long as you have an established track record of income that could justify the loan, it’s entirely possible to get conventional financing for an investment property.
If a conventional investment property mortgage is too difficult, or impossible, to obtain because of the nature of your income, there could be another option: asset-based investment property loans. In recent years, the number of reputable asset-based lenders has soared. Just to name a few, Lima One Capital, Lending One, and Visio Lending make investment property loans that aren’t based on your income.
As the name implies, asset-based real estate loans are primarily based on the underlying asset, meaning the property you’re planning to buy. Typically, the borrower will still need to submit to a personal credit check, and you’ll need a substantial down payment (25% is usually expected), but otherwise the loan will be based on the property itself, not your personal income, employment, or assets.
The important number most asset-based lenders focus on is the debt service coverage ratio, or DSCR. This is the ratio of the property’s expected rental income to the expected mortgage payments (including taxes and insurance). While requirements can vary from lender to lender and may depend on your credit score, most want to see a DSCR of at least 120%, and higher is better.
To be sure, asset-based investment property loans tend to have somewhat higher interest rates than conventional loans and may have slightly less favorable repayment terms (like a prepayment penalty), but these can still be valuable tools for real estate investors.
It can be more difficult to finance an investment property — or any type of real estate purchase — if you have any type of income other than a steady paycheck from an employer. Trust me, as a self-employed freelancer myself, I know this firsthand.
However, don’t get discouraged. While documentation requirements might be more intense, it’s certainly possible to get a conventional investment property mortgage with a nonconventional income. And even if traditional mortgage lenders say no, there are some excellent asset-based lenders who would love to fund solid investment property opportunities.
Author: Posted By: Editor