Posts on living off investments, investment income, alternative income investments, dividend investing, covered call writing, strategies for living off investments, REITs, MLPs.
A lot of investors get confused about wealth building vs income but these terms are the starting point for investing. Don’t get me wrong: More income is always good to have! And it can be saved to build wealth over time. But, as you’ll see below, it can make sense to forego a focus on …
If you’re headed into retirement soon you may be wondering how to calculate investment income so you can make sure you’re covered. Here’s how to calculate investment income. Let’s say you’ll get a 3% yield from an investment which cost $10,000. You’ll simply multiply the yield by the investment cost to get the amount of income …
The old model of retirement no longer works for a lot of people who want to live well in retirement. Old retirement strategies include basics like delaying social security, working longer and part time employment. But, fortunately, there are now some more innovative and lucrative retirement strategies that can be a real godsend for retirees. Many millennials are already using some of these new retirement …
Consistently saving money and investing it in stocks and bonds builds wealth over many years. The problem is that this strategy usually takes at least two decades, and most people don’t begin this discipline until it’s too late to save enough to retire comfortably. Alternative wealth solutions exist, however, for anyone willing to think and invest outside the …
For those planning to retire soon, retirement can feel scary from both a financial and a lifestyle perspective. Fear of retirement boredom is a very legitimate reality, especially for certain personalities. Here are 7 ways to address that subtle and almost embarrassing fear that you could be bored to tears in retirement. Read my own …
True financial independence is reached when you can live off investment income. Living off investment income has many advantages that often require a shift from traditional investing in stocks and bonds, but there are also a few disadvantages to living off investment income. In this post, I’ll share and explain the 22 advantages and 6 …
Living Off Investment Income | Advantages and DisadvantagesRead More »
If you’re concerned that investing in traditional stocks and bonds with a common asset allocation won’t provide a comfortable retirement for life, you’re not alone. We had those same concerns over a decade ago, along with millions of other investors over 50, and here’s what we discovered. Alternative retirement investment strategies can result in higher …
12 “Slightly” Alternative Retirement Investment Strategies Read More »
Just past midlife, many people get super focused on increasing net worth before retirement. What net worth do you need to retire? It depends on how much money you spend, how your net worth is allocated among assets, the income those assets generate and their potential to increase in value, and other income sources. In this post I’ll address …
Updated: October 9, 2019 By definition, retirement is the time when you can live off investments. The traditional retirement model is to withdraw 4% a year from your retirement savings to live but an increasingly popular alternative is to get income from investments instead. Is it safest to withdraw or get investment income to live in …
Is It Safest to Withdraw or Get Investment Income? ChallengeRead More »
Updated October 7, 2019 At the end of the strong bull market of the 1990’s, a few brave financial experts predicted the next decade would not be a good one for stock investors. What will stocks do over the next 10 years? Ray Dalio, Warren Buffett, Rob Arnott, Liz Ann Sonders and John Bogle have told us what …
Knowing how much money you need to live off investments can seem daunting but it’s really just a few steps and math. Let’s say you want to generate $ 10,000 a month to live off investments. We can back into the amount of money you need with the following formula: Amount of Desired Monthly Income/Expected Yield = …
Is 1.5 million enough to retire? The answer depends on your age, assets, spending, investment returns and how many income sources you’ll have in retirement. In this post, I’ll show you how to see if 1.5 million is enough for you to retire based on your own situation. At Retire Certain, the goal of my articles is to …
After surviving a few bear markets over the past 40 years as an investor, I’ve learned many lessons from them. Reducing risk in stocks before bear markets take full hold helps investors protect their net worth as well as have capital to invest in stocks again once unusually low valuations are reached. This sounds almost too obvious to write, but most investors don’t take …
Reducing Risk in Stocks | 13 Lessons from Past Bear MarketsRead More »
You may have noticed that you’ve gotten both capital gains and dividends from investing. Are dividends or capital gains better? While I wouldn’t turn down either, dividends are better when you have decided to live off investments, and capital gains are better for building wealth. The Difference Between Capital Gains and Dividends While making money …
You may have heard that selling covered calls can increase earnings from stocks. How do covered calls work exactly? Covered call writing is a strategy where a stock investor sells call options that give the call option buyer the right to buy the stock from the stock investor at a set price and within a certain …
Selling in the money covered calls can be an excellent income generating strategy for those living off investments. An in the money covered call strategy involves selling a call option with a strike price higher than the cost of the underlying stock to increase income from stocks. After writing covered calls over the past 13 years, I have found that there …
If you’re exploring early retirement like we were well over a decade ago, you may be wondering about the income provided from the standard 4% retirement withdrawal rule. Does the 4% rule include dividends, specifically? Or do investors using this popular plan get to withdraw 4% annually in addition to dividend income? The 4% rule …
Growth investing is usually done during an investor’s high income years while income investing is usually done during retirement, but the best time to transition from growth to income can be unclear. If you’re wondering when to switch from growth to income investments, the answer depends on several factors including net worth, income sources, wealth …
When to Switch from Growth to Income [With Videos]Read More »
If you’re approaching retirement, that anticipated time when you can live off investments or at least work fewer hours own your schedule, you’re probably transitioning to income investing. You may be wondering how to buy assets that generate income. The way you buy income generating assets depends on the type of asset you’re buying. For example, …
If you’re concerned about having enough income to live comfortably in retirement, you may want to start one or more income streams beforehand but you’re not sure where to start. To choose the best income stream to start before retirement, consider your desired income, eventual capital gain, acceptable risk and lifestyle. It’s easy to get …
The Best Income Stream to Start Before RetirementRead More »
You may be thinking of transitioning from growth to income investing before retirement. The pros and cons of income investing are outlined in this post based on what I’ve learned from almost 40 years of investing in stocks and bonds with a focus on more alternative income investing for the past 15 years. While I’m …
Covered calls can be an excellent way to increase income from stocks but like all investments, covered calls aren’t perfect. The problems with covered calls include stock market risk, company risk, high capital, missing capital gains, taxes, and management. It is my belief that the benefits far outweigh the problems with covered calls for income …
In this time of low dividend yields, increasing stock income by selling call options on stocks you already own sounds pretty appealing to yield hungry investors. Are covered calls a good strategy? Selling covered calls increases income significantly while decreasing risk making them an excellent income strategy for stock investors. In fact, you can add …
Every day more investors are getting into entrepreneurship or real estate and you may be wondering if either makes sense for you. The opportunities from owning a business vs. real estate vary based on 9 factors including time, capital, risk, income potential, wealth building potential, leverage and ease of implementation. In this post, I’ll share …
Owning a Business Vs Real Estate | What I Learned from EachRead More »
Updated August 8, 2019 Investing in bonds definitely has risks, contrary to what many investors think. Just what are the risk of bond investments? They include interest rate risk, default risk, inflation risk, call risk and economic risk. The fact that bonds are used to offset risk from stocks, and the very long bull …
What Are the Risks of Bonds? Chart Stocks Vs BondsRead More »
Income investing comes with both risks and rewards, just like all investments. The risks of income investing in bonds includes interest rate risk, default risk, inflation risk and more. And for stock income investors, there is bear market risk and political risk. Both bond and stock income investors face company or entity specific risk and …
A wealth coaching client recently asked “How much do I need to invest to make $10,000 a month in income?” So, we explored several options based on her net worth and chosen level of risk. To see how much you need to invest to make $10,000 in monthly income, or any other amount, simply multiply …
How Much Do I Need to Invest to Make $10,000 a MonthRead More »
Most investors own stocks in their portfolio with the expectation to build wealth while also getting dividend income. But many investors don’t realize they can sell covered calls for income on their stock holdings, without increasing risk, and get 6 to 9 times the income that’s derived from dividends alone. Why isn’t everyone selling covered …
Covered Calls for Income – Example of a Recent Strategy I Did with ROI [Charts]Read More »
Living off investments defines financial independence. Just how much money do you need to live off investments completely? Get a good estimate by dividing your annual desired income by the expected yield. For example, if you want $10,000 a month in investment income, divide $120,000 ($10,000 x 12 months) by the yield (5% in …
How Much Money Do You Need to Live Off Investments? Choose From These 3 LayersRead More »
Stocks dividends are an easy way to get passive income, but it takes a lot of capital to make a significant amount since dividend rates are low for most stocks. I bought my first dividend oriented mutual fund at Fidelity Investments almost 40 years ago, and I’ve owned many dividend stocks since then. Is Dividend …
Investors spend most of their lives concentrating on investing for growth vs investing for income. The way to generate more income from investments, then, is to simply shift your overall objective from growth to income. Here are 44 ways to get more income from your investments ranging from stock dividends to alternative income investments, such …
How to Get More Income from Investments – 44 StrategiesRead More »
Are you tired of seeing the passive income ads with the rented Ferrari parked in front of someone else’s mansion? It leads one to ask: Is passive income real? The answer is yes, passive income is real, with these important caveats below which no one mentions. In this post I’ll share some truths for income …
Are you concerned about having enough money to retire? Does it seem impossible to reach your retirement income goal? I get it! About a decade ago, after facing the realization that income from stocks and bonds alone may not sustain our standard of living for life, we set a retirement income goal to replace our …
Are you wondering if living off covered calls is feasible? Over ten years ago, I wrote my first covered call, and I’ve written hundreds of covered calls since then. Here I’ll share why living off covered calls alone can be challenging, and some solutions if you’re considering this little known but sensible income stream. Is …
Does interest off 1 million dollars seem like it would provide plenty of income for life? In this article, I’m going to show you how much interest income you’ll get from a million dollars. Let’s face it; a million dollars sounds cool. So we’ll use it as the foundation for this post. Many people spend …
Have you heard that the past reliable retirement withdrawal strategies don’t work anymore? Well, there is good news, and bad news around that rumor. The good news is that retirement withdrawal strategies can work for those seeking to withdraw 1 to 4% a year from their investment accounts as a passive source of funds. The bad …
Retirement Withdrawal Strategies – Do They Still Work?Read More »
Are you searching for income producing assets that pay you consistently, often, and much more than the low dividend rate that you get from a stock portfolio nowadays? In this article, I’ll share with you 9 income producing assets. We are currently using all but one of these income producing assets as of this post, …
You may be wondering how to live off investments, especially in this day and age of extremely low interest rates when your investments don’t earn much income. Simply put, you can live off investments in one of three ways: Spend your savings and the growth from that money Spend the income your savings generates for …
How To Live Off Investments During Low Interest Rates [Videos]Read More »
Here I write about creating and living off multiple income streams from stocks, real estate and online businesses from late midlife onward along with my husband, Larry. After investing for almost 40 years, I share the good, the bad and the ugly. I invest our own money and do not manage wealth for others, so you get real, unbiased information that is not meant to construed as financial advice.
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