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"Invest $250,000 for Income-2011"

  • Runner48
    Posted: May 15, 2011 02:08 PM
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    South Bend, IN
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    I will be getting a lump sum of $250k by the end of the summer. I want to safely invest it. I want to generate income to pay

    all or most of the monthly real estate taxes,insurance and utilities. Home is paid, no credit card debt or car payments. I will retire in

    January of 2014 at age 65. Monthly requirement to preserve principal and pay those charges would be about $1,250.


  • #1
    Posted: Jun 16, 2011 02:32 PM
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    Estero, FL
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    According to what you need to produce monthly in income, implies that you need to invest in something that pays you a 6% annual return (not accounting for taxes, so if we acct for taxes this rate will need to be bumped up to a gross return of about. about 7.7 - 8% ).

    With that said one option - given that you have several years before you retire -would be to establish a self-directed IRA acct, roll the funds into it and invest with no tax implications until you start accessing the profits as income. A self-directed IRA allows you to invest in both standard and alternative investments, tax-deferred.

    So what to invest in:

    There are numerous options, but I recommend that you consider something tied to real estate - directly or indirectly; but which generates profits for you passively. You can invest passively in a number of ways

    1) A REIT (invests in mortgage notes, real properties or a combo thereof)

    2) A Real estate group (buys, flips and holds properties for cashflow income)

    3) A Real Estate Investment and Holding Co. ( I founded one of these)

    4) Loan your money to a hard money lender who in turn loans to real estate investors

    5) Purchase mortgage notes or trust deeds as they are often called

    6) Purchase tax-lien certificates - psuedo passive

    Whatever you do, be sure to understand how your principal is being protected, how and when distributions are made, and when your principal is returned. If you're diligent you'll be able to find a good opportunity as you have the summer to do so.

    One last thing to keep in mind. Financial advisers (depending on how are structured) may not recommend any of the above if they can't profit from it.

    Hope this helps

  • #2
    Posted: Jun 22, 2011 10:24 PM
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    Sartell, MN
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    Assuming a $250K initial premium and a 3yr delay before you start needing the income (age 65) you can get up to $17,581/yr ($1465/mnth) for life while keeping your principal protected and offering a full death benefit to your beneficiaries. If you want the information, shoot me an email and I will have one of my Agents in Indiana contact you.

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