Today, the 10-year Treasury pays just 2.3%. Put a million bucks in T-Bills, and you’re banking $23,000 per year. Barely above poverty levels!
Hence the appeal of closed-end funds (CEFs), which often pay 8% or better. That’s the difference between a paltry minimum-wage income of $23,000 on a million saved, or a respectable $80,000 annually.
And if you’re smart about your CEF purchases, you can even buy them at discounts and snare some price upside to boot!