I have $500,000. How should I invest it so that it pays me for living expenses?

Question

I have $500,000. I don't know what to do with it. Mutual funds only earn around 3% to 4% interest.

I want to have earnings of at least $3000/month from my money. This is so I can pay for my living expenses. How should I invest it- and where?

I live in Canada.

Answer 1

BOM Dividend fund (bank of montreal) might be good for you. In the last 10 years they have averaged paying out 12.96% interest. (although in the last 1 year they averaged 11.54%) They've been around a while and have about 5 billion in assets. So that would give you 5,400 per month in income. I do recommend that you split some of that up though. Bank of montreal has several different mutual funds, some of which pay more or less than the dividend fund (but the dividend fund pays every month instead of 3 months) Anyway here is their website. http://www4.bmo.com/investments/0,4629,35649_23751594,00.html Just look under daily fund prices to see the list they have.

Answer 2

Where did you get the information that mutual funds yield 3-4%? Be that as it may. $3,000 per month is $36,000 per year or 7.2% percent per year.

If you invested $500,000 in stock mutual funds and took a systematic withdrawal of 7.2% per year you might be ok. If you took a little less. Say 5% you would definetly be ok .

There is no investment I know of today paying over 7%. Please read my profile, send me an email and we can chat.

Is this IRA or 401K money? If it is not you might want to look at Tax Free Municipal Bonds.

I have other thoughts but I would need to know more about you.

Answer 3

With amount you can easily find a highly qualified adviser. Bases on your statement on mutual fund it sounds like this is an area that you could use some help with.

The trick is finding an adviser you can trust, ask someone you trust personally that has a financial adviser to give you a referral. If you don't have any one that can give you such a referral interview at least three advisers.

People hate to pay for advice, but you have a lot to gain from a professional and a lot to loose if you make poor choices yourself. Would you handle your own legal problems or not see a doctor if you had a major medical problem?

A good adviser should be able to help you meet your goals for a minimal amount of cost.

Answer 4

Yes, you can earn $3,000 a month with $500K.

Invest in someones small business. You will get around 20% annual profit. You will not get such high returns on stocks, mutual funds, bonds or CD's.

I run my own business and I have profit margin of over 5% a month.
You could open long-term account in European bank with 8% APY (5 years deposit).

Email me at [e-mail] for more information. I would advice you something if you are serious about investing.

Best of luck!

Answer 5

Isn't that easy to say all here since a good long term strategy can be a little bit complex. You should talk to a bank advisor and open one offshore account too. $500k isn't a huge amount to get high quality bank service in USA that's why you should find alternatives.

All I can say is $3k a month is easy with $500k. That's around 0.6% a month or 7.4% AER. Not really hard.

Just be careful and be wise you already have a good amount to start so don't mess it and very soon you can be the next multimillionaire.

Answer 6

You want to have earnings of $36,000/year, which would require earnings over 7%. Good luck.

My honest advice would be to invest it in gold, which will appreciate nicely over the next several years. Of course, then you need to go out and earn a living, but there are worse things.

Answer 7

Hello.
I am working for individual fund investor in Europe that has about 3,000+ active funds .... They are independent investor that doesn't sell any funds... They are investing in other funds on your behalf... In short words...

With that kind of money you get a personal adviser.

You open your deposit account... You trasfer funds and than they are trading for you. Best thing is that you can withdraw your funds anytime you want. Funds aren't lock for a certain period of time.

If you want more info contact me on Yahoo messenger.

All best with your trading
Matic S

Answer 8

in the beginning, stable pastime! maximum individuals do no longer even think of approximately paying off their mortgages. Your math would not make experience to me, so i'm going to attempt to determine it out. in case you're renting the abode for $2800 and this is $one thousand greater desirable than the non-public loan fee meaning your very own loan fee is $1800. i'm not sure the place you're starting to be to be the $4600. i think of one in each and every of your numbers is a typo. i could evaluate how long are your renters are going to be there, how plenty pastime you're paying vs. how plenty you may make, etc. the two your suggestions are stable. i could do the two.