How to insure a CEF portfolio?

[rumi]

I'm sure many people here have over $100K in CEFs. How would one insure such a portfolio? Sadly, there are no options on CEFs, but I'd sleep a lot better if I had put options to protect myself from extreme drawdowns.

Are there any ways to insure a large CEF portfolio? I welcome all ideas. Even the more creative ones. Thank you.

[steelpony10]

rumi,

         Diversification of your income stream including cash was our answer. We hold a large muni on reinvestment for 40+ years, a great amount of CEF income that projects to cover our expenses until age 90 or so. Also we received all our investment back from our initial CEF’s investments to date except for recent shares, the last 3 years. All that excess income to needs up to the last three years has gone to VTI mostly and PONAX. We’ve limited investing now to big sales so cash is accumulating, probably our last move.

          So by spreading money around each section has less effect on the whole. Of course under present conditions everything takes a hit. Only cash is king but that loses purchasing power each day you hold it.

          If you want to minimize risk don’t go beyond what you’re comfortable with which also works. At this point as buy and hold investors we regard our CEF’s income as just free money. Variable values of any investment are part of investing those values will go for LTC if ever needed or heirs so not our problem.

[FD1000]

There is no easy reliable insurance. If it was, the whole world would use it.

Diversification is considered a decent insurance but no guarantees there either. YTD, the 2 main categories stock+bonds lost nicely.

Other posters love to mention high income, especially CEFS, but CEFs lost plenty. Other potential funds are ones that give managers the option to change allocations + assets based on markets and predictions. These work for a while but don't have a good long term record.