Hi all! New to the forum, and relatively new to stocks and investing. I started in 2020, taking advantage of the early days of the COVID crash. Things have changed a bit for me since then, and I'm in a position where I'm thinking about selling my business. The goal would be to pay off my mortgage, and then invest the rest with enough of a monthly payout to cover my living expenses for pretty much the rest of my life. Let's say that you had $150-200k in your pocket, and wanted to be able to pay yourself $1000 /month forever, with minimal work, and without touching the original $150k. How would you invest it? High dividend stocks, like AT&T? High yield bond ETF, safer but with less of a dividend? High growth stocks that you buy and sell strategically? Mortgage REIT? Other?
Correct, nice dividend stocks like ATT, REITs are all good ideas, even better if the markets are down and they keep the divi at the same level.
What is the minimum that you think I would realistically need to invest in order to (somewhat) consistently pay myself $1000 /monthly? I know it would fluctuate with the market, of course, but just "in general"?
If you're looking to park money in something that pays a dividend, which are paid out quarterly, then you'll just need to do the math. In other words, you'll need to invest enough capital to get at least a $3,000 quarterly dividend payment... On the other hand,, if you're looking to trade (e.g. buy & sell with some level of short term frequency) to generate $1000/month...then in my opinion you're mindset is off. What you're essentially doing from the get-go is putting this "pressure" on yourself to make $1000/month. In doing so, you will inevitably make bad trades, because you will try to "force" trades through to get to your magic number. Not. Good. Just my 2-cents, V
No, what I'd like is something that is somewhat safe that I can reasonably expect to get $1000 /month ($3k /quarterly) without ever touching the principal. But I want to invest the minimum there, so that I can invest the rest in higher growth / higher risk stocks. Meaning, if I end up with $200k to invest but I could get $1000 /month from investing $100k of it in a high dividend stock or REIT, I'd like to use the other $100k to buy other stocks that could potentially have a much higher return. I made a 75% return on some of my stocks last year, so I'd hate to trade another potential 75% return for 5%, ya know what I mean? I'm trying to CYA.
Right -- so it's just a math equation. Step 1, find the safe, high dividend-paying equity of your choosing. Step 2, using the historic dividend rate & average stock price, calculate what you'd need to have invested in that equity to reasonably expect $3000 quarterly. Step 3, invest that amount of money & wait for your dividend check
