Would it be a realistic objective for a financial advisor to be able to generate a couple hundred bucks in income a month for a client working with 100,000. Keeping it in low risk investments.
Would it be a realistic objective for a financial advisor to be able to generate a couple hundred bucks in income a month for a client working with 100,000. Keeping it in low risk investments.
you could put that into dividend paying stocks and make that
Thanos was the hero
Wouldn't stocks be a higher risk investment ? Forgot to say this is retirement income.
I think if it’s a long term goal of a good payout, then if you go with a quality company you will be OK even when the market goes down. Just look at past companies like VZ, MMM, PG, and how their stock did durning the last big downturn in 2008. The stock went down but the payout percentage increased and when the market recovered they went back up.
I guess I look at it as low risk dividend/value stocks and higher risk growth/ speculative stocks. the lower the risk the less the return. There is no such thing as zero risk. Even cash has risk in an inflationary environment.
What's a financial advisor gonna do? charge you money to invest it in stocks and bonds.
Thanos was the hero
Yes a financial adviser is going to charge you but when you don't know alot about investments and not real skilled on a computer what do you do.
To get 200 dollars a month in income you would need to earn a 2.4% in income. To get 400 a month you would need to earn 4.8%. You can probably get around 2.4% with an intermediate bond etf but that also comes with risk as rates rise. To get 4.8% in income you are going to have to take a lot more risk. This is the problem for retirees with rates this low. If inflation is higher than the bond yield you are still going to lose money and to get higher income you end up having to take higher risks including falling into the yield chasing trap.
I like this.Originally Posted by NitroZ7
also....keep in mind if you go with an advisor they likely are charging you around 1% for their services.
An alternative is to find a fee based planner that can assist you. They charge by the hour or plan.
educate yourself on the role of a fiduciary. They are to act in your best interest and not theirs (like putting you into investments where they are paid a commission).
Most large fund families can offer you low cost funds that might help you accomplish your goal. I would just try to keep it simple. Vanguard and fidelity are two large fund families that have a much to choose from. I like Vanguard as I have always felt that they were honest and trustworthy.
Also so note I said low cost funds. Pay attention to those fees as the higher they are the tougher it is to make the return you desire...and there is no correlation to cost and value (fund returns).
as nitro’s post states the more yield you need to higher the risk you will need to take.
Is Vanguard something you do yourself on computer or go through a broker ? With the funds being in a 401k how do you get the money to whatever company you go with? Do you have it transferred to your bank and then say to Vanguard ?
If you are rolling it from a 401k to an IRA you should contact Vanguard or whoever you decide to go with. You don't want to mess that up and end up having tp pay taxes or penalties.
Which dividend paying stocks would you recomend specifically? (I know I invest at my own risk, past performance is not an indicator blah blah blah)
"If People Concentrated on the Really Important Things in Life, There'd be a Shortage of Fishing Poles." - Doug Larson
"Peace is not the absence of turmoil but the presence of God" Jo-Ann Thomack
I have a stock DPG pays a great dividend of .35/Q has not changed it in 10YRs. I do not have nearly that much in it but a $10,000 investment can earn about 81./MO. If you split out your total investment you can reduce your risk using a few highs payers (higher risk) use the rest of your investment to generate the amount wanted and the high risk investment is just a bonus.
This is something I do and works for me.
My wife and I have Vanguard and she set us up with their Advisory Services. Yes we pay a fee to Vanguard, but you can do it yourself. The advisor has us in four ETF's. Total Stock Market, Total International Stock Market, Total Bond Market, and Total International Bond. Gets rebalanced quarterly if needed. I also have a little play money that I buy individual stocks with. I call it my gambling money.
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