Replies to post #705 on AGNC Investment Corp (AGNC)

[bar1080]

Retiree focused income "products" are becoming loaded with gimmicks. I'd argue that just about anything that pays more than market rate (about 1% to 3% nowadays) is something of a gimmick or at least carries a ton of risk. AGNC and most mREITs are in that group.

Among the worst gimmicks are high yield ETFs where shareholders are mostly getting their own money returned to them... and pay high management fees for the "privilege." Those include some Alpine and Cornerstone ETFs.

They pay double digit yields but the shares fall double digits every year. LOLOL!

[bar1080]

BTW, wealthy retirees don't want additional income at all! And they certainly don't need it monthly vs quarterly. I plan to die with all of my appreciated investments... good tax planning.

I own a Closed End Fund that just went to a 6% minimum annual payout. How do the do that? Well, if the fund doesn't make 6% (and it won't in a bear markets) they just pay it out of principal. That is, I get paid MY money!

AGNC is just one of a bazillion gimmicky income investments... that most people should avoid.

You could also argue the leverage it uses is another gimmick. Although it's not one of the most leveraged.