The Best Investments that Protect Against Biden’s Money Grab

He’s doing the buying…and YOU’RE doing the paying.

It’s not Biden’s student-loan “forgiveness” plan, it’s (fill in your name)’s student-loan “forgiveness” plan. 

The particulars are easy enough to understand.

Biden mandates that you “forgive” $10,000 in student-loan debt and $20,000 in Pell Grants to anyone who makes under $125,000 (and $250,000 if married). 

And so is the motive….

It’s Biden’s chance to buy additional votes for his party (at your expense) from a young voting block just begging to be bought.

A Harvard University poll found that 85% of Americans 18 to 29 years support some form of government action on student loan debt.

The insanity of it all is that the federal government continues to make these student loans. It’s like shoveling coal into a fire on one side while hosing it with water on the other. 

What will Biden’s vote grab cost you, me, and anyone else who works and pays taxes?

The estimates I have read range between $425 billion and $450 billion. 

And make no mistake, you will pay….

With higher debt service, higher inflation, and higher taxes. (There’s a reason the laughably named “Inflation Reduction Act” included a provision for 87,000 IRS agent hires.)

We can we do, besides complain?

I plan to outrun the beast the best I can by raising my income through my investments. 

I’m not alone.

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I see more investors seeking refuge in higher-yield income investments. More will seek refuge if inflation emerges as the primary form of payment.

Here are a few high-yield investment categories you might consider.

Master-limited partnerships (MLPs) are a favorite among income investors. MLPs are composed mostly of partnerships that extract, move, and store natural resources.

Pipelines are a favorite within the sector. These partnerships move and store oil and natural gas. The Alerian MLP ETF (NYSEArca: AMLP) is a favorite of mine. It offers a starting yield of 7.4%.

Business development companies (BDCs) are another go-to source for high-yield income. These companies lend to small- and mid-sized companies. Many lend on variable terms, so if inflation rises, so does the interest rate on the terms of the loan. 

I view Ares Capital Corp. (NASDAQ: ARCC) as the best of breed in this space. Ares offers an 8.6% starting income yield.

Closed-end funds (CEFs) are lesser known but are worth a look. These funds trade on the exchanges like stocks and ETFs. Many offer some of the highest yields available.

I like the CBRE Global Real Estate Income (NYSE: IGR) fund. It owns a globally diversified portfolio composed mostly of real estate investment trusts (REITs). The CBRE fund offers a starting yield of 9.6%.

The PIMCO Global StocksPLUS & Income Fund (NYSE: PGP) is another CEF worth considering. The Pimco fund owns a diversified portfolio of stocks and bonds. The fund offers a 9.5% starting income yield.

Washington’s relentless money grab can make it feel as if you’re continually filling a leaking bucket. At least these high-yield investments can help you keep pace with the leak. 

Good Investing,
Stephen Mauzy
Contributing Editor

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