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"Investing 250,000 for a high monthly income"
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- #1
- Posted: May 10, 2012 07:17 PM
Flag for inappropriate language - jpbfinancial
- Merrimack, NH
- View Profile
jjohnson,
Not to sound demeaning, but this is a lofty goal indeed. You will be hard pressed to find a viable resource that can take that principal amount and offer you the income that you need. Outside of pursuing extraordinarily risky ventures, where the loss of your money is very high - your options are very limited.
Normally when clients seek income such as you, the two usual suggestions would be a diversified equity portfolio that invests in dividend paying stocks. the other option would be to use an annuity, normally an immediate annuity if the income is needed immediately and the income is to be stable.
I can't imagine an equity income portfolio that could offer sustained income such as this. the only other viable option would be to consider a 10 year fixed immediate annuity. I just ran the numbers and a good quality annuity will offer between 28k to 30k based on the original investment amount of $250,000.
I wish you all the best,
Jeff Boutin
- Posted: May 10, 2012 07:17 PM
jjohnson,
What is a realistic return on a diversified equity portfolia that invests in dividend paying stocks?
I have a 10 deferred annuity that was purchased in 2005. Market conditions have rendered 0% on this. The rider is 7% interest per year. The annuitized value at the end of 10 years will be 393k. But I have to wait to annuitize until 591/2 years old to avoid the 10% irs penalty. After 12 years the value is 446k.
Better to take the lump sum and invest, or annuitize and get payments of 25k/year for 20 years.? What do you think?
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Other questions Boomeraters are asking...
I recently came into 250,000 dollars and would like to know something that would be a good investment in. The goal of this investisting venture is to obtain a monthly income of 30,000 a month or close to. Is this idea anyway possible?