05-18-2015, 02:05 AM
(05-17-2015, 09:07 PM)rayray Wrote: Have you ever thought of Preferreds?
It has crossed my mind but I do not have enough knowledge of them to even think of buying right now. Guess I should educate myself a bit more on them.
But if I understand correctly, I'm going to have to sell them on the secondary market when I need back the capital... and the price always fluctuates of course. So seeing as the timeframe we are looking at is definitely less than 5 years then that would definitely present a risk of losing some of the original capital, right? Also how is the liquidity?
I'm thinking of bonds as an alternative to a cash account since I know I'll be getting the capital back on maturity date. (unless the company defaults)