I have $100,000 to invest that I would like to generate interest income from. What would be the is the best way to invest?
2006-06-13 04:05:08 · 6 answers · asked by GC 1 in Business & Finance ➔ Investing
If you are looking for conservative but guaranteed returns, I agree with the earleir answer in terms of using CDs. If you break the total investment into 3 equal portions and put them on a rotating 90 day CDs, it's a decent return with 1 portion always freeing up each month in the event you need to use it.
However, if I read your question correctly, you are looking for more substantial "income". If that is the case, then I recommend looking into investing into income property. With a 100k investment, there is a likely possibility that your rental income will exceed your mortgage payments and maybe even help pay the property tax as well. The benefits behind this are: interest payments have tax benefits, any work done to the property is deductible, property values tend to grow in the long term, this is essentially a giant piggy bank which other people are throwing their money into. The only cons against this are: real estate market is slowing down right now if not on the downtrend, if the property isn't rented out you will be paying the mortgage out of pocket, you would have to be responsible for the upkeep of the property.
I actually know of an investment with excellent returns and great stability that's unaffected by happenings in the economy. It's low risk but requires a little patience and your money would more or less be tied up for a few years. If you are interested in an alternative investment idea, please feel free to contact me at your leisure.
2006-06-13 05:29:09 · answer #1 · answered by Sugarbear 3 · 0⤊ 0⤋
Check out putting the money into an annuity. If you don't need the interest right away you can always build it up in the annuity and have it pay out more later. If you want the income right away you can still get income from the annuity without losing your principal.
Of course you could always buy a house and rent it out, but that can be a lot of work.
2006-06-13 11:12:39 · answer #2 · answered by Amber B 1 · 0⤊ 0⤋
Beware the high cost of invensting in annuities. If you wish to have monthly income from your investments, short term notes/bonds or a rental property (with positive cashflow) are likely alternatives.
2006-06-13 12:13:58 · answer #3 · answered by self.evolved 1 · 0⤊ 0⤋
You can do CDs or run the risk of losing your principle in the stocks... CDs are guarenteed and the stocks are not.. if you are trying to live off 100K there really is no way. However with todays CD rates yielding 5% annually you could walk away with 5G after a year.
2006-06-13 11:08:30 · answer #4 · answered by need to know basis 3 · 0⤊ 0⤋
Buy a mutual fund in high yield bonds
2006-06-17 20:17:01 · answer #5 · answered by Anonymous · 0⤊ 0⤋
If you send me the money I can double it for you every six weeks.
Can live on $866,666 tax free per year? If so send me the money.
2006-06-13 11:51:32 · answer #6 · answered by Anonymous · 0⤊ 0⤋