Investment Question?

Question

I’m just throwing out the feelers as I have no money to invest at this time. I’m just curious. How much money would I need to invest, and into what type of account, to receive $1,500.00 per month in interest income? Basically to pay my mortgage for me.

Answer 1

It depends on what you invest the money into. Low grade or Junk Corporate bonds (assuming they don't default) yield between 9 and 15% right now, but they are risky.

Stocks with dividends seem to be a trend, but I wouldn't look at most of the S&P stocks for dividends. The S&P dividend percentage is only 1.8%.

If you stuck the whole thing in CDs at say 5%, one million dollars will only give you $50,000 per year pre-tax, after tax (depending on your tax bracket, say in this case 27%), you're left with $36,500, or roughly $3000/month. Half would go to the mortgage, but lots of people cannot live on $1500/month with car payments, house taxes, and the other things you need to have.

I would do a mix of CDs with of rate of at least 5% (or a Money Market Fund at 5% or higher) if you had $1,000,000. If less, you need to get into corporate bonds with lower grade ratings or into Muni Bonds (but check the tax ramifications on those). Stocks generally don't pay good dividends as a whole, but you would have to research which stocks have good dividends and then see whether or not they are worth buying to get the dividends.

Answer 2

There are some stocks that pay 10% annually in dividends. The price of stocks can always go up or down depending or the market and the economy. If a stock didn't change in price, and paid 10% annually, you would need $180,000.

A couple of stocks with big dividends:

Fording (FDG), Primewest (PWI), Precision Drilling (PDS)

Nothing in the market is guaranteed though. If you are interested in learning about the market, then with a lot of research and hard work you can find good investments that will make you 10% a year or more. I recommend studying what the best investors are buying and selling. You can find this information at http://www.top10traders.com - this is a free site that lets you create a portfolio of stocks with $100,000 in "play" money. Each day the site ranks the best performing portfolios, so you can see how your picks perform compared to other investors. You can also read posts on investing from the best traders, as well as share your own investing ideas. There is also a charting feature , so you can see how your portfolio performs compared to the S&P 500.

Here are this month's best traders:

http://www.top10traders.com/Top10Standings.aspx

Hope this helps.

Answer 3

You'd need about $300k in a dividend paying stock. Collect the dividend and write covered calls on the stock. That will give you the money you need.

Answer 4

$80,000.00 USD in a Wells Fargo Account.

Answer 5

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