I need good ways to invest for fixed income need to pull 25-35k out of 400k portfolio?

Answer 1

There are several ways to get a fixed income of $35,000 (8.75%) from your portfolio without having to get into exotic trading programs. This is a perfect case study for setting up an asset allocation strategy with stocks and bond funds for growth and income. Right now is a great time to weight your portfolio in closed end funds, especially the ones that are invested in real estate. One example is the Neuberger Berman Real Estate Income Fund (NYSE: NRO). Current yield is approximately 6.60%, but the total return (growth + income) for the the past 12 months is roughly 34%! If your holdings are in a tax-deferred retirement account, you can add companies with projected growth of 10% or better like, McDonalds Corp and AT&T. Cash in the growth stocks when they reach your targets. Or, you can find a dozen other funds like REITS (Real Estate Investment Trusts) and the equity fund I mentioned above. Plan your income with solid performers, and manage your plan. Best wishes!

Answer 2

This maybe be tough utilizing fixed income instruments only. You need to earn about 7.5% when yields on fixed income bond funds are yielding between 4-6% and CD's are about 5%. There are indivdual issues that can achieve your goal, but the risk would seem to be more than what you to take. You may want to consider a portfolio of both fixed income and good dividend paying stocks to achieve your goal.

Answer 3

It is possible, but it would also be subject to considerable risk. Are you certain that the risk would be worth it?

Here are a list of some fixed income investments that will currently yield that amount.

BEP This is a covered call writing fund. It currently yields about 10%. Pays twice annually

CIK This is a junk bond fund. It currently yields about 11%. It holds a bunch of Ford bonds among others. Pays monthly.

BEO another covered call writing fund. It currently yields about 11%. Also twice annually.

ECV another covered call writing fund. It currently yields about 10%.

RMA another junk bond fund currently yielding about 10.5%. Pays monthly.

IAF This is an Austrailian equity fund that currently yields about 9%. Pays quarterly. I do not know how it does it. Also has excellent capital gains. Last 10 years it has had an annual return of better than 14% annually.

Here is a link where you can find what suits you. But be very cautious of very high yields. They are very risky.

http://www.etfconnect.com/select/rank/default.asp?fType=1&oType=3&etf=N&num=26

Answer 4

Buy a ton of stock in a conservatively financed company with a strong balance sheet that has been paying dividends for a long time. For example GE. With 400k you can buy about 10,000 shares (actually around 10,700), but 10,000 for simplified purposes.

-if you take the 3% yield on the dividends, thats $12,000 right there in 12 months.

-then you can write covered calls on the 10,000 shares. Since a call contract is for 100 share lots, you can write 100 contracts for a given strike price to expire on a given month.
(for example you can collect about $17,000 worth on the January 2008 series $40 strike calls) --total return $12k + $17k = $28k

( or be more aggressive which one limit your upside, but guarantee a higher return would be to collect about $28,000 on the same series of contracts for the $37.5 strike)) --total return $12k + $28K = $40k

you can be even more aggressive and do it with verizon stock. verizon has very stron income and cash flow, but high capital costs associated with the FIOS initiative. If FIOS does not work out this could have a negative impact on the stock, but I doubt consumers will say no to having more choices of companies for cable television and internet.

Coincidentally, Verizon's stock price is about the same as GE's so you can afford 10,000 shares here as well. Verizon's annual yield on dividends is 4.4% (it was actually much higher this year with the special dividend of $2/share off the spin-off a few months ago). So 4.4% on $400k is $17,600.

Then using the covered call strategy again. You can write for example again January 2008 series calls which are almost exactly priced as the GE calls are. So the $37.5 strike contracts would get you around $28,000 ($17.6k + $28k = $45.6k)

Note dividends will get taxed at around 15% and the covered call income will get taxed at income if you write them with less than a year to go before expiration.

Answer 5

You probably haven't considered investing in a little known field of secured trust deeds. You're in essence a private lender to participate in a real estate project. Your $$ is secured by a 1st deed of trust against the property. These often return in excess of 10% (often times much higher), with your $$ secured by a valuable & stable collateral (real property). If the principal or the borrower 'defaults', you can actually foreclose on the property & take title to the property. Compared to the stock/bond markets, this is a fairly secure way to achieve an above-average return for your $$ with no volatility to your principal. check w/ your local real estate investment club for more info.

Answer 6

Go to http://bond-yields.com they are good at it getting those rates.