For three decades at Merrill Lynch, I managed investments for a number of the firm's very important clients. These VIPs were typically very successful and sharp themselves, and almost all had top legal and accounting professionals looking out for them. I and my team had to be very careful in finding good returns while exposing our clients to little or, ideally, no risk.
Since most of these investors were in high tax brackets...and interest rates were generally higher during the period...much of the trading activity involved tax free bonds. Annual yields reached double digits in many of the years.
When interest rates and ANNUAL yields became unattractive...as is the case right now in the US...different strategies were utilized involving SHORT TERM instruments which delivered excellent ANNUALIZED returns for periods as short as a month or less. This approach would be used many times during the year, with the result that the investor's overall ANNUAL return greatly exceeded the returns on traditional longer term instruments.
For example, if traditional bonds, CDs and the like were only paying ANNUAL returns of 3% or 4%, a combination of different financial instruments averaging 1/2% PER MONTH might be utilized throughout the year to achieve 6% or better for the whole year.
Even greater ANNUALIZED returns were often available by using even shorter instruments generating WEEKLY income.
In this current period of ultra low interest rates approaching zero, it is the purpose of this site to discuss how investors can use the approach described above to achieve ANNUAL returns of 5% and greater by capturing very short term ANNUALIZED returns, and to do so with very little if any risk.
James L. Terry
Financial Resolutions, LLC