Lux Investing
Investing and living off the money?? best options?
$350,000 (Aus Dollars) Tax Free to invest I am a complete novice when it comes to investing thats why I want to put the money somewhere and live of the interest so I can study. My option(s) as I see them are : 1. High Interest Savings account (paid monthly) 2. No other options (without studying further) Any laymans terms would be appreciated.. Thanks
Public Comments
- For long-term investing, stocks have historically provided the best returns, but if you need current income to live off, I think you need something much more stable. High interest savings accounts are one option, but I'd be very careful about choosing one and stick to well known reputable companies that have been around a long time. There are a lot of scams around claiming to offer high interest rates. Government bonds might be another possibility. There are short-term bonds that mature within months or a year or two, so buying a few short-term and some medium-term bonds could work. Bank CDs are another possibility. Again, by putting some money in short-term CDs that mature in a few months and some in 1-year or 2-year CDs, it's possible to stagger the times that they mature so that there is money available every month. I don't know how rates are in Australia right now, but in the US you can't get more than about 4% or maybe slightly more in any of those options, which would only be an income of $14,000 a year on a $350,000 investment. I doubt that's enough to live on so it might be necessary to use some of the $350,000 for living expenses or find some other source of income. Again, I warn you about anyone offering higher than normal interest rates. The scam artists promise things that look very appealing to people in your situation, then steal your money. Be careful.
- The 1st option sounds very good in my opinion.
- If you would like to get some annual income every year that has the ability to increase over time without any further contributions then you should consider investing in dividend aristocrats. Dividend aristocrats are stocks that have a history of consistently raising their dividends year after year for at least 25 years through a lot of bear and bull cycles. An example of such a company is Coca-Cola or Altria ( Used to be called Philip Morris). The beauty about these dividend paying stocks is that some of them yield close to what bonds would yield ( 4%) but they might also increase their payment each year to compensate for the inflation which decreases your purchasing power. If you invest in bonds, you will have a predictable source of income, but in the current environment you will lose real purchasing value in them due to inflation. Dividend paying stocks on the other hand would offer you an ever increasing income, preserving your wealth and also giving you a potential for capital gains. And last but not least, dividend income is taxed less than bond income in most countries.
- Personally I invest over $250,000.00 USD with a investment club. You have the option to roll your income earned each month or draw against it your choice. I have been very happy with th results I have received for a few years now and have not heard any bad info from any one. check out the web site http://www.freewebs.com/mnthighinvest Good luck in all your investments and if you have a question for me please feel free to write bankerbobretired@yahoo.com
- i have $200,000 invested in portfolio margining and i am making $40,000 a month with no risk at all.
- If you want to know all of your options, or many of them, go to : low-cost-stock-recommendations .com May I suggest looking at the CD"s, Bonds and Global Investing Buttons. Especially Canada when you get into Global Investing. This is my favorite website. I have purchased one recommendation from them, a silver ETF that returned 15% in 4 weeks. I would recommend personally, remaining conservative with your money, however, I think you can find better investments than a savings account. Once again, look at the Canada Stock Picks. Especially Pick 2. Good Luck
