High Yield Funds – Major Players, Pros, and Cons

High Yield Funds – Major Players, Pros, and Cons

High yield funds are a collection of mutual funds or exchange-traded funds that hold stocks or bonds. You either earn a high-dividend income or receive a high-interest payout depending on the type of asset allocated to the fund. Some funds, when properly invested, can fetch you both and be an adequate retirement income. All investments carry calculated risks dependent on market factors, and these must be carefully studied before taking a call.

Why invest in high yield funds?
Investing in high yield funds can help absorb some of the losses you might have suffered due to market volatility and financial predictions. The last few years have witnessed a sharp fall in market numbers triggered by the pandemic and the war. However, specific high yield bonds performed well even when the market stocks dipped, forcing investors to make radical changes in their portfolios.

High yield funds or bonds are determined by specific economic factors. This means the bonds you purchase will provide a strong return when the market does well. While interest rates may not be higher than 4%, it makes sense to invest in such assets to diversify your portfolio and make some money. Calculating the spread of the bond over a year and comparing it to investment-grade bonds can help decide whether to invest or not.

Major players in the funds market
Prudential Financial is a Fortune 500 company that provides insurance, retirement planning investments, and investment management services across nations today. PGIM, formerly known as Prudential Investment Management, is the asset management subsidiary of the parent company. It specializes in over seventy distinct types of mutual funds (MF), electronically traded funds (ETF), and Target Date funds that you can buy and sell in the open market.

The company offers calculated risk investment opportunities, sophisticated tools for planning, customized plans, and retirement strategies for experienced as well as first-time investors. Prudential Investment Funds are also segregated into different classes to offer a more diverse investment portfolio. Prudential Investment Funds Classes Z and Q are currently on the market radar for their performance factors amidst market volatility and unpredictability.

Prudential High Yield Funds Class Z and Q
Since its inception in 1996, Prudential High Yield Fund Class Z category has shown promising risk-managed returns among other long-term funds to hold for retirement. This mutual fund, classified among fixed income high yield bonds, has a net asset value of over $11,666.5 million as of the first quarter of 2022. According to year-on-year research conducted since the inception date, Prudential High Yield Z Funds have shown relatively small price fluctuations. This makes it possible for conservative investors to put money aside for the long term and expect a steady return after retirement.

The fund’s major holding is segregated into five sectors—US Corporate, Cash, Derivatives, Securitized, and Government, with the first sector holding being over 94%. The Z class, with an average return of 6.33%, since its inception, has provided a strong ROI benchmark for high yield funds in its class. Alternatively, Prudential High Yield Funds Q category is a newer fund projecting a quarterly annual return of 6.36% on an average since its inception. Note that the sector allocations are ranked as net asset percentages and can change without prior notice.

Current outlook for Prudential High Yield Funds
PGIM High Yield Funds diversify investments across a wider portfolio, thus increasing the potential income earning capacity in the long run. It is a relatively better option over risky stocks, rising interest rates, and yield-oriented investments. Research done in the first quarter of 2022 suggests high yield funds potentially provided 74% of returns with only 55% of the risk, taking into account the standard deviation. There is limited downside risk as Prudential mainly focuses on high-rated funds. Moreover, the strategic investment approach for Prudential’s Fixed Income investments, like in High Yield Funds, signals competitive returns and rankings in the long run with minimum market volatility impact.

There is a lot to consider when getting into bond investments for the first time, and mere statistics can often be confusing. It is, therefore, better to weigh the pros and cons of high yield funds. 

Pros and cons of high yield bond funds
High yield corporate bonds are an excellent medium-risk investment opportunity for conservative investors. There are many advantages to diversifying your portfolio with a high yield bond.

Pros:
Most of these bonds are issued by companies that do not have an investment-grade rating, which means you can expect a higher return on investment.
The performance of these bonds is generally linked to the credit worthiness of issuing companies. Bond appreciation value goes up when the company’s credit rating improves.
Bondholders receive first payouts even if the company goes under liquidation before other stakeholders receive their money.
High yield bonds are also more dependable than regular stocks, even during times of market volatility.

Cons:
Since the high yield corporate bonds also have a higher default rate, the chances of expected ROI depend solely on company performance.
It is more difficult to resell a high yield nonrated bond over traditional bonds as investors generally prefer acquiring the latter.
Credit rating and market worthiness directly affect the bond value. If the company’s rating goes down, it negatively impacts the ROI on high yield bonds as well.
Market interest rates carry an inverse relation with high yield bonds. If the market interest rate goes up, the value of bonds will decrease and vice versa.
High yield bonds cannot recover from a recession.

Understand that mutual fund investments are subject to multiple risk factors that determine both the performance of the issuing company and the value of the fund. It is advisable to consult with an expert certified financial planner to understand the long-term outlook of investing today in high yield funds. It is necessary to be aware of the upsides and downsides of investment opportunities that offer lucrative returns, as there is always a catch involved.

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Top 4 Car Insurance Companies for Seniors

Car insurance is mandatory for all drivers, and while senior citizens may not get behind the wheel as often as they used to, auto insurance for them too is a mandate. Insurance companies offer special discounts, tailored policies, and perks for senior drivers who might not want to use their car often. Mature drivers can compare and choose best priced car insurance plans from insurance companies that offer them. Best car insurance for seniors  These four companies offer the best combination of affordable premiums, senior-specific discounts, and exclusive policies to save money on car insurance. Nationwide® Nationwide® car insurance rates are 21% lower than the national average for drivers over 60. For a cheaper premium, the insurance company pays for all liabilities related to bodily injury, personal injury, property damage, uninsured/underinsured motorist protection, treatments, and comprehensive collision coverage. Nationwide® also ensures quality customer service, a grievance-free claims handling process, and ranks among the top vendors for customer loyalty. One of the company's key highlights is the SmartMiles program beneficial for senior drivers with limited mileage after retirement. The yearly car insurance premiums are calculated based on the total number of miles driven with SmartMiles. This policy, available in 40 states, is suitable for seniors who commute less than 12,000 miles per year and can still afford to pay for car insurance after retirement. Overall, the estimated savings with Nationwide® can go upwards of $400 each year, given seniors meet all the driving criteria specified by the company. GEICO Due to competitively lower rates, GEICO ranks among the popular picks in best car insurance for seniors. Drivers between the ages of 65 and 85 can benefit exclusively from additional discounts. One of the key highlights of the policy is the guaranteed renewal program. Policyholders aged 50 and above qualify for the renewal program and may avail of the Prime Time contract features. For this contract, the company specifies that policyholders cannot have any operators/drivers below 25 for the insured vehicle. They should not have been involved in violations or accidents in the three years prior to application with GEICO. But this contract is currently available in only 30 states. Policies also cover accident forgiveness and feature innovative usage-based insurance for good drivers with a clean driving record. GEICO offers exclusive discounts for careful driving habits, retired government & military personnel, and owners with multiple vehicles using the same policy. State Farm® State Farm® is a more lenient option for commuters who may not have a clean driving record. Key highlights of the insurance include a usage-based policy and decent rates for drivers with DUI (driving under the influence) violations. Senior drivers with prior speeding records or driving offenses can also benefit from better rates for insurance premiums. Policyholders earn exclusive discounts and rewards with the company’s patented Drive Safe & Save™ program. Download the app and let the company actively monitor driving and overall performance. Those who match the criteria can save up to 30% on auto insurance rates for the year. Senior drivers with good credit enjoy excellent policy renewal scores and pay 22%-24% less insurance premiums than the national average. State Farm® operates in all 50 states, making it one of the best car insurance for seniors. Allstate® Seniors can save a lot on the best-priced car insurance policies with Allstate®. The company is the fourth largest auto insurance provider in the business. Allstate® also ranks among the best for customer service and claims handling processes. One of the key highlights is the pay-per-mile insurance policy that allows seniors to get affordable rates as per the number of miles driven in a year. The Drivewise® program monitors daily driving habits and provides the insurance company with on-time updates. Also, seniors with the best driving score and a good driving record can avail of low premiums. Allstate® offers addons, including accident forgiveness that prevents a premium increase and features loan or lease gap insurance. It also has an exclusive app that lets all policyholders review their profile, make payments, and monitor insurance status on the go. How to choose from the best car insurance for seniors Since most insurance companies offer various senior discounts and special deals to lower the premium rates, it can be challenging to make a choice. So here we've listed a few things you can consider to make the right choice and get competitive rates. Update driver status online After retirement, seniors should update their status from regular commuters to driving only for leisure. Insurance companies offer unique low-mileage plans or pay-per-mile policies for seniors who drive a limited number of miles in any given year. This detail can be updated while requesting quotes online. Learn defensive driving Some states, by mandate, require seniors to learn defensive driving. Drivers over the age of 50 can benefit from lowered premium rates and enjoy exclusive discounts on the quotes for qualifying for this eligibility criterion. Seniors can consider courses offered by AAA and AARP and spend no more than $20 for the short refresher course. Maintain a proper driving record The number of traffic violations and even accidents determines how much of an insurance risk seniors pose. Having a clean record with minimal infractions increases the chances of getting affordable premiums. Those who have multiple priors should alternatively consider applying to insurance companies that offer policies for average drivers. Compare multiple insurance companies Seniors must compare premium rates and check available discounts across top insurance providers in the country. It may so happen that a company may offer reasonable rates but no special discounts for seniors. Understand that insurance quotes are subject to changes deemed fit and necessary by the insurance provider. Please check and read all contract terms before giving any consent.

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Newton Group and Wyndham Make Timeshare Exits Easy

A timeshare is a smaller unit within a large resort or vacation property, which you can partly own by splitting the cost with other owners. Frequent vacation-goers love buying timeshares at exotic destinations as it helps them save money on lodging. But it can get tricky when you want to exit the contract or switch to a different location. Timeshare exit programs by Newton Group and Wyndham help people with the process. Why hire Newton Group for help with your timeshare exit? In partnership with existing law firms, Newton Group has helped hundreds of timeshare owners file arbitration demands and lawsuits for a legal exit from their properties. All legal claims follow a well-structured process without the need for excess documentation. Moreover, the services are affordable. You do not have to shell out retainer fees for multiple timeshare exits, and there are no compounding billable hours. These factors make Newton Group timeshare exit company a go-to option for desperate owners losing money on units that need to be transferred at the earliest. Newton Group timeshare exit process Your quest to exit an unwanted timeshare begins with a simple questionnaire as part of a five-step exit program: Step 1 To begin, Newton Group's customer service executives contact you to gather relevant ownership details of the timeshare. They can file a legal claim only after receiving all the facts about the property's status for evidentiary support. Based on this information, the company's representatives determine the most suitable course of action. Step 2 Some hotels, clubs, and resorts offer timeshare owners an expedited exit option. So, the second step involves exploring in-house timeshare exit options that you have not already considered to see if any legalities can be utilized in your favor. Step 3 The company's representatives will move on to step 3 if there are no viable in-house expedited options. They contact partner law firms that have the expertise to help transfer your ownership legally. Newton Group will submit your case to a suitable party after receiving your consent. Step 4 Newton Group's advocacy partners will now instruct you to gain better leverage over your timeshare exit. Your law firm representative will utilize any legalities that may work in your favor during the hearing or settlement meeting. Step 5 Newton Group goes a step further to retain and pay for advocacy at no additional cost, especially in cases where owners have been victims of pressure sales tactics. If the case stretches longer than expected, you do not have to worry about hefty retainer fees. You will receive personal guidance and counsel throughout the process, right up to the point where ownership is legally transferred from your name. Inclusivity of services, committed legal counsel, and dedicated customer support enable Newton Group to maintain an A+ rating by the Better Business Bureau. Customers say that Newton Group's timeshare exit cost varies between $3,000 and $8,000 as there is no flat fee applicable for the service. It may be better to hire Newton Group to exit timeshares instead of holding on to meaningless properties that are becoming increasingly expensive to maintain. Should you consider Wyndham Certified Exit? Wyndham Destinations is among the biggest holiday property ownership businesses that help people purchase and manage timeshares in its vacation clubs. They have a program called Certified Exit, which helps owners strategically and legally exit the property. However, it is an in-house program, only for those who own timeshares in Wyndham partner resorts and hotel chains. Like Newton Group, Wyndham's timeshare exit specialists provide guidance and counseling to produce the best possible action plan. Five key features of the service include: The entire service can be availed free of cost Simple phone and online process Shortest possible time of exit (minimum 90 days) No upfront fees and security from fraudulent exit schemes Backed by Wyndham guarantee Wyndham is among the few popular timeshare exit companies that offer innovative solutions for owners and renters. The customer service executives and legal teams consider factors that can affect the owner's travel plans while suggesting solutions. A timely timeshare exit is made possible well within the boundaries of the law. Why do people transfer timeshare properties? A Newton Group timeshare exit review study highlighted a few reasons why owners want to let go of their timeshare: Unethical sales practices by timeshare chains Many people marketing timeshare holiday packages and destinations resort to pressure tactics. They rush with the offer to make the sale, finish the documentation in haste, refuse to take no for an answer, and make potential customers feel pressurized into buying the property. Deceiving clients with details Salespersons deceive people looking to buy a timeshare in different ways: hiding the actual market value of the investment property, longer sales presentations, unrevised appreciation value of the unit, and unrevised availability of dates. Newton Group's timeshare exit reviews and research suggests that unsuspecting buyers are forced into a position where they pay for a timeshare they might not be able to sustain. It eventually becomes impossible to quickly offload such listings in the open market as demand and supply hinge on travel and tourism. The other reasons that sparked an exit after just a few years of ownership were financial problems, not being satisfied with the timeshare unit, and health reasons preventing regular travel to the place. Many love owning vacation properties at affordable rates without buying them for perpetuity. However, according to the American Resort Development Association (ARDA), the average cost of owning a timeshare has increased to over $22,000 per interval. The price could be higher, making them hard to finance and hold on to. Before hiring services of the timeshare exit companies like Newton Group and Wyndham, many owners try giving up the place for charity and even for free in some cases, simply to get rid of the fractional ownership. You can contact the representatives of Newton Group and Wyndham timeshare exit companies to understand all terms and conditions of ownership transfer before hiring their services.

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