How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?

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slipp1229
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How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?

Post by slipp1229 » Mon May 14, 2018 11:21 pm

Hello
Thanks in advance for experienced BH's advice/opinions!
Without going into explicit detail of my total financial picture ... I want to purposely keep this post simple and to the point & purpose.
I do have other funds invested per common BH guidelines ... I'm not concerned about these. I have purposely kept $1,000,000 on the sidelines in MM fund accounts waiting for the next " 2008 crash". I know .. stupid me. Moving on now, and would like to take the cash and put it into a Short/Mid Term investment that would provide a Low Risk, Principle protected investment that would provide a 4-6% after tax, annual return to supplement my current retirement income. I'm thinking a laddered bond approach? ... but would REALLY appreciate other BH's who were/are in a similar financial situation's feedback.
Again, Thanks
Slipp
Last edited by slipp1229 on Mon May 14, 2018 11:30 pm, edited 1 time in total.

MotoTrojan
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Re: How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?

Post by MotoTrojan » Mon May 14, 2018 11:23 pm

slipp1229 wrote:
Mon May 14, 2018 11:21 pm
Hello
Thanks in advance for experienced BH's advice/opinions!
Without going into explicit detail of my total financial picture ... I want to purposely keep this post simple and to the point & purpose.
I do have other funds invested per common BH guidelines ... I'm not concerned about these. I have purposely kept $1,000,000 on the sidelines in MM fund accounts waiting for the next " 2008 crash". I know .. stupid me. Moving on now, and would like to take the cash and put it into a Short/Mid Term investment that would provide a Low Risk, Principle protected investment that would provide a 4-6% after tax, annual return for my current retirement income. I'm thinking a laddered bond approach? ... but would REALLY appreciate other BH's who were/are in a similar financial situation's feedback.
Again, Thanks
Slipp
Principal protected? Doesn’t exist.

jacoavlu
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Re: How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?

Post by jacoavlu » Mon May 14, 2018 11:31 pm

I think you’ll have a hard time finding 5% return without downside risk.

PFInterest
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Re: How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?

Post by PFInterest » Mon May 14, 2018 11:36 pm

slipp1229 wrote:
Mon May 14, 2018 11:21 pm
Hello
Thanks in advance for experienced BH's advice/opinions!
Without going into explicit detail of my total financial picture ... I want to purposely keep this post simple and to the point & purpose.
I do have other funds invested per common BH guidelines ... I'm not concerned about these. I have purposely kept $1,000,000 on the sidelines in MM fund accounts waiting for the next " 2008 crash". I know .. stupid me. Moving on now, and would like to take the cash and put it into a Short/Mid Term investment that would provide a Low Risk, Principle protected investment that would provide a 4-6% after tax, annual return to supplement my current retirement income. I'm thinking a laddered bond approach? ... but would REALLY appreciate other BH's who were/are in a similar financial situation's feedback.
Again, Thanks
Slipp
Good luck with that.
You can invest it or spend it. But only FDIC will be principle protected.

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peterinjapan
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Re: How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?

Post by peterinjapan » Mon May 14, 2018 11:39 pm

I like brokered CDs from Fidelity but they won't bring in that much.

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Re: How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?

Post by AlohaJoe » Mon May 14, 2018 11:41 pm

slipp1229 wrote:
Mon May 14, 2018 11:21 pm
I'm thinking a laddered bond approach? ... but would REALLY appreciate other BH's who were/are in a similar financial situation's feedback.
Have you looked at what bonds pay 4-6%? It is easy to log in to your broker and get a list of bonds. What bonds are have you researched and are considering for the ladder?

drk
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Re: How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?

Post by drk » Mon May 14, 2018 11:43 pm

slipp1229 wrote:
Mon May 14, 2018 11:21 pm
would like to take the cash and put it into a Short/Mid Term investment that would provide a Low Risk, Principle protected investment that would provide a 4-6% after tax, annual return to supplement my current retirement income.
This does not exist, and anyone offering it is trying to rip you off. That being said, if you're willing to take on moderate risk, you could come close with one of the following funds:

slipp1229
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Re: How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?

Post by slipp1229 » Mon May 14, 2018 11:53 pm

No .. I do not have the expertise nor the time to assemble my own Bond Ladder.
There are Bond Ladder ETF's like Bulletshares that does this. I was just posing the question to other BH's for advice on how
to generate $40-60K from $1,000,000 ... trying to keep this question simple and direct
Thanks
Slipp

mega317
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Re: How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?

Post by mega317 » Mon May 14, 2018 11:58 pm

Hard to get advice from people in a similar financial situation when you won't share yours. What you're asking for isn't even close to existing.

jacoavlu
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Re: How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?

Post by jacoavlu » Tue May 15, 2018 12:12 am

slipp1229 wrote:
Mon May 14, 2018 11:53 pm
advice on how to generate $40-60K from $1,000,000
50-50 equities-bonds, withdraw 4%. So years more than $40k, some years maybe less, but long term data suggests this can be done.

But there’s downside risk. You’ll have to take some risk to get those returns.

AlohaJoe
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Re: How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?

Post by AlohaJoe » Tue May 15, 2018 1:46 am

slipp1229 wrote:
Mon May 14, 2018 11:53 pm
No .. I do not have the expertise nor the time to assemble my own Bond Ladder.
There are Bond Ladder ETF's like Bulletshares that does this. I was just posing the question to other BH's for advice on how
to generate $40-60K from $1,000,000 ... trying to keep this question simple and direct
Bulletshares does not protect your principal. The Bulletshares 2020 High Yield Corporate Bond ETF has a CAGR of 3.58% -- lower than your desired 4-6% -- and had lost -10.71% at one point.

The non-high yield version has an even lower CAGR of 2.14% -- half of what you want -- and was still subject to a -5.46% loss of principal.

You have to decide whether you want to protect your principal or whether you want to earn 4-6%; you can't have both. Risk & reward are usually (but not always) linked; no one will pay you 6% for not taking any risk. Maybe they would have 20 or 50 years ago but in these days of plentiful capital, no one's going to pay that much unless there is risk involved. Since you're asking for both, you appear to be a new investor. It is probably worth checking out some of the recommended books before deciding how to invest $1 million.

livesoft
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Re: How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?

Post by livesoft » Tue May 15, 2018 5:28 am

OP also asked for "after tax" return.

Also OP asked for "Principle protected" and not principal protected, so OP could just spend down the $1,000,000 for the next 20 to 30 years quite safely without risk.
Last edited by livesoft on Tue May 15, 2018 5:39 am, edited 1 time in total.
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The Wizard
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Re: How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?

Post by The Wizard » Tue May 15, 2018 5:38 am

MotoTrojan wrote:
Mon May 14, 2018 11:23 pm
slipp1229 wrote:
Mon May 14, 2018 11:21 pm
Hello
Thanks in advance for experienced BH's advice/opinions!
Without going into explicit detail of my total financial picture ... I want to purposely keep this post simple and to the point & purpose.
I do have other funds invested per common BH guidelines ... I'm not concerned about these. I have purposely kept $1,000,000 on the sidelines in MM fund accounts waiting for the next " 2008 crash". I know .. stupid me. Moving on now, and would like to take the cash and put it into a Short/Mid Term investment that would provide a Low Risk, Principle protected investment that would provide a 4-6% after tax, annual return for my current retirement income. I'm thinking a laddered bond approach? ... but would REALLY appreciate other BH's who were/are in a similar financial situation's feedback.
Again, Thanks
Slipp
Principal protected? Doesn’t exist.
Doesn't exist, correct.
And Principal, not Principle, also correct...
Attempted new signature...

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Rainier
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Re: How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?

Post by Rainier » Tue May 15, 2018 5:40 am

With a short term treasury bond ladder earning 2-3% and only taking out $40k per year how long would it last?

Earning 0% it would last 25 years (and no income taxes). Add in 2% and it lasts much longer.

The Wizard
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Re: How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?

Post by The Wizard » Tue May 15, 2018 5:43 am

To get 6% after tax, you'd want about 8% pre-tax.
Perhaps Argentinian CDs would yield this?
https://argentina.deposits.org
Last edited by The Wizard on Tue May 15, 2018 6:00 am, edited 1 time in total.
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JoeRetire
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Re: How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?

Post by JoeRetire » Tue May 15, 2018 5:49 am

slipp1229 wrote:
Mon May 14, 2018 11:21 pm
I have purposely kept $1,000,000 on the sidelines in MM fund accounts waiting for the next " 2008 crash".

Moving on now, and would like to take the cash and put it into a Short/Mid Term investment that would provide a Low Risk, Principle protected investment that would provide a 4-6% after tax, annual return to supplement my current retirement income.
For now, keep it in cash and hope for a high-inflation period.
Then once rates get high enough, put it in CDs.

Good luck.

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Re: How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?

Post by z3r0c00l » Tue May 15, 2018 6:09 am

Everyone touting a bond fund or CD should note that the OP wanted 4 - 5% after tax. Inflation is important to consider too, since inflation is working its way steadily to 3%. The only decent shot at reliably making these returns after tax would be to invest in a mix of stocks and bonds, mostly stocks. And you might lose 50% in a year. No free lunch.

If you want to do this safely, invest in something conservative and remove your 40 - 60K per year from the principal. Your CD or bond fund might keep the $1 million worth $1 million after inflation but it won't add much value to it.

By the way, if such an investment existed, you wouldn't have to ask about it since we would all use it and it would be famous.

Mrmetalpole
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Re: How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?

Post by Mrmetalpole » Tue May 15, 2018 6:17 am

drk wrote:
Mon May 14, 2018 11:43 pm
slipp1229 wrote:
Mon May 14, 2018 11:21 pm
would like to take the cash and put it into a Short/Mid Term investment that would provide a Low Risk, Principle protected investment that would provide a 4-6% after tax, annual return to supplement my current retirement income.
This does not exist, and anyone offering it is trying to rip you off. That being said, if you're willing to take on moderate risk, you could come close with one of the following funds:
Of the fund suggestions offered, can you rank them least to highest in terms of “moderate risk”? Thanks!

Gill
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Re: How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?

Post by Gill » Tue May 15, 2018 6:38 am

mega317 wrote:
Mon May 14, 2018 11:58 pm
Hard to get advice from people in a similar financial situation when you won't share yours. What you're asking for isn't even close to existing.
Go back to OP’s earlier posts. He’s been discussing this for several years.
Gill

Bacchus01
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Re: How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?

Post by Bacchus01 » Tue May 15, 2018 6:52 am

If I knew that, I certainly wouldn’t tell you

B. Wellington
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Re: How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?

Post by B. Wellington » Tue May 15, 2018 7:25 am

jacoavlu wrote:
Tue May 15, 2018 12:12 am
slipp1229 wrote:
Mon May 14, 2018 11:53 pm
advice on how to generate $40-60K from $1,000,000
50-50 equities-bonds, withdraw 4%. So years more than $40k, some years maybe less, but long term data suggests this can be done.

But there’s downside risk. You’ll have to take some risk to get those returns.
As others have pointed out, there is no "free lunch" low (no) risk return. A good C.D. ladder may get you $20K-$25K per year...???

That said, the above post is what we plan to do in the future with a 50/50 or 60/40 AA. Lower risk with a good chance of those returns. If one is willing to tap principle per livesoft's VPW withdraw rate would be another choice to consider to get your $40k + cash flow.

dbr
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Re: How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?

Post by dbr » Tue May 15, 2018 8:41 am

Pray for the one thing people go insane about on this forum, which is for interest rates to go up.

RetireBy55
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Re: How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?

Post by RetireBy55 » Tue May 15, 2018 8:51 am

Come now, gang..I just saw an ad for Brighthouse Annuities on TV last night that promised "all of the market upside with NONE of the downside risk!". So, surely, the purple unicorn investment that the OP is talking about must indeed exist.

</sarc off>

livesoft
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Re: How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?

Post by livesoft » Tue May 15, 2018 8:54 am

Another possibility is to buy Treasuries paying 2% and get a job side hustle that pays the other $30-60,000 a year, so that after-tax one clears $40-60,0000 with no risk.
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Re: How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?

Post by indexonlyplease » Tue May 15, 2018 9:10 am

Depending on your age that million could last for years. 50 k year 20 years with no interest. Interest and other investments longer. Then with SS you could take less from the million and even last longer.

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Abe
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Re: How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?

Post by Abe » Tue May 15, 2018 9:36 am

Rainier wrote:
Tue May 15, 2018 5:40 am
With a short term treasury bond ladder earning 2-3% and only taking out $40k per year how long would it last?

Earning 0% it would last 25 years (and no income taxes). Add in 2% and it lasts much longer.
Earning 3% it would last 47 years.
Earning 2% it would last 35 years.
Slow and steady wins the race.

MotoTrojan
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Re: How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?

Post by MotoTrojan » Tue May 15, 2018 9:41 am

Mrmetalpole wrote:
Tue May 15, 2018 6:17 am
drk wrote:
Mon May 14, 2018 11:43 pm
slipp1229 wrote:
Mon May 14, 2018 11:21 pm
would like to take the cash and put it into a Short/Mid Term investment that would provide a Low Risk, Principle protected investment that would provide a 4-6% after tax, annual return to supplement my current retirement income.
This does not exist, and anyone offering it is trying to rip you off. That being said, if you're willing to take on moderate risk, you could come close with one of the following funds:
Of the fund suggestions offered, can you rank them least to highest in terms of “moderate risk”? Thanks!
If you believe in the EMT then the higher the yield, the higher the risk.

delamer
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Re: How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?

Post by delamer » Tue May 15, 2018 9:42 am

Bacchus01 wrote:
Tue May 15, 2018 6:52 am
If I knew that, I certainly wouldn’t tell you
:beer

Inflation has been at about 2.4% over the last year.

If there was an investment like you describe with a real return in the neighborhood of 4% (pretax) plus a protected principal, people would be lined up like a new iPhone was being released.

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Clever_Username
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Re: How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?

Post by Clever_Username » Tue May 15, 2018 10:00 am

I feel like the money market account you have your money in should have been paying $40/year in interest already, probably more. However, the difference between forty dollars and sixty thousand dollars is quite big and there aren't any zero-risk ways to get this. If you had asked in 1982, someone could have shown you CDs paying enough to hit the upper bound of your range.

The real answer is to get an asset allocation you're comfortable with and accept the returns you get from that.
"What was true then is true now. Have a plan. Stick to it." -- XXXX, _Layer Cake_

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Re: How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?

Post by jrbdmb » Tue May 15, 2018 10:06 am

RetireBy55 wrote:
Tue May 15, 2018 8:51 am
Come now, gang..I just saw an ad for Brighthouse Annuities on TV last night that promised "all of the market upside with NONE of the downside risk!". So, surely, the purple unicorn investment that the OP is talking about must indeed exist.

</sarc off>
Since Dave Ramsey constantly touts 12% annual returns on retirement funds, I'm sure he can recommend a 6-8% investment without risk. :twisted:

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Re: How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?

Post by Nate79 » Tue May 15, 2018 10:15 am

RetireBy55 wrote:
Tue May 15, 2018 8:51 am
Come now, gang..I just saw an ad for Brighthouse Annuities on TV last night that promised "all of the market upside with NONE of the downside risk!". So, surely, the purple unicorn investment that the OP is talking about must indeed exist.

</sarc off>
I was wondering if someone would propose an insurance product. Sounds like some good ol' permanent insurance products might just do the trick.....

:mrgreen:

B. Wellington
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Re: How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?

Post by B. Wellington » Tue May 15, 2018 10:20 am

Abe wrote:
Tue May 15, 2018 9:36 am
Rainier wrote:
Tue May 15, 2018 5:40 am
With a short term treasury bond ladder earning 2-3% and only taking out $40k per year how long would it last?

Earning 0% it would last 25 years (and no income taxes). Add in 2% and it lasts much longer.
Earning 3% it would last 47 years.
Earning 2% it would last 35 years.
Very interesting numbers Abe. Something to think about. ( Maybe with part of the portfolio % ?) :beer

JBTX
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Re: How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?

Post by JBTX » Tue May 15, 2018 10:42 am

Abe wrote:
Tue May 15, 2018 9:36 am
Rainier wrote:
Tue May 15, 2018 5:40 am
With a short term treasury bond ladder earning 2-3% and only taking out $40k per year how long would it last?

Earning 0% it would last 25 years (and no income taxes). Add in 2% and it lasts much longer.
Earning 3% it would last 47 years.
Earning 2% it would last 35 years.
Yes but you aren’t accounting for inflation. You are assuming $40k nominal dollars each year, which becomes less and less in real terms

With 2% inflation, earning 2% is zero real. If you are pulling out 40k adjusted for inflation that would last 25 years. But there is no principal left.

Y

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Abe
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Re: How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?

Post by Abe » Tue May 15, 2018 11:20 am

JBTX wrote:
Tue May 15, 2018 10:42 am
Abe wrote:
Tue May 15, 2018 9:36 am
Rainier wrote:
Tue May 15, 2018 5:40 am
With a short term treasury bond ladder earning 2-3% and only taking out $40k per year how long would it last?

Earning 0% it would last 25 years (and no income taxes). Add in 2% and it lasts much longer.
Earning 3% it would last 47 years.
Earning 2% it would last 35 years.
Yes but you aren’t accounting for inflation. You are assuming $40k nominal dollars each year, which becomes less and less in real terms

With 2% inflation, earning 2% is zero real. If you are pulling out 40k adjusted for inflation that would last 25 years. But there is no principal left.

Y
Obviously, inflation and also taxes need to be considered. I was merely stating how long 1 million "would last" at various interest rates in nominal terms.
Slow and steady wins the race.

staythecourse
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Re: How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?

Post by staythecourse » Tue May 15, 2018 11:37 am

To be tongue and cheek when you find that principle protective investment that gives 4-6% return POST tax let me know since 1 year treasuries are yielding: around 2.25% PRETAX.

Good luck.

p.s. Not trying to be a jerk, but hoping that response will make it pretty obvious what the answer is.
"The stock market [fluctuation], therefore, is noise. A giant distraction from the business of investing.” | -Jack Bogle

SouthernCPA
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Re: How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?

Post by SouthernCPA » Tue May 15, 2018 11:49 am

You're either investing to win or investing to "not lose". It sounds like you want to win, but have the risk profile of "not lose." Stay away from Ponzi Schemes, these traits are right up their sales pitch.

Why not just allocate the $1,000,000 based on the proper asset allocation for your risk tolerance/age? Why are you carving out the $1,000,000 and treating it as a separate "bucket." You've already missed a nice run up trying to time the market that would have offset future declines, so clearly timing the market and waiting for the next crash is not the strategy for you. Invest it according to your overall asset allocation strategy and forget about it.

BanditKing
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Re: How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?

Post by BanditKing » Tue May 15, 2018 12:23 pm

Safest I can think of off the top of my head would be AA-Rated municipal bonds. Some risk, especially interest-rate and inflation risk, but fairly safe and you can lock in 3.5-4% earnings that are fed tax-advantaged (maybe even state depending on where you live). As a result, the tax-equivalent yield might be closer to 5%.

The drawback is your principle is largely locked in (secondary-market resale) and if inflation climbs, you are taking a hit in your overall earnings. The other risk is the bond not being paid back.

I know an individual bond ladder wasn't high on your list, but you could forgo the ladder and just buy a couple long-term bonds and call it done. Just risky.

I can't see any way to pull 4-6% without risk, though, at least with rates where they currently are.

CnC
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Re: How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?

Post by CnC » Tue May 15, 2018 12:32 pm

Seriously though has noone mentioned annuity option.


I'm betting the op could spent a million dollars and easily buy an annuity that would pay him 40k after tax a year.


A 40 year old could buy an annuity for 1 million that pays 46k a year for life.

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snackdog
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Re: How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?

Post by snackdog » Tue May 15, 2018 12:38 pm

CnC wrote:
Tue May 15, 2018 12:32 pm
Seriously though has noone mentioned annuity option.


I'm betting the op could spent a million dollars and easily buy an annuity that would pay him 40k after tax a year.


A 40 year old could buy an annuity for 1 million that pays 46k a year for life.
If he is old enough he could get an annuity that pays him $60K or more per year for life. He would love this. However, he has further stipulated he wishes to preserve his $1MM principle. That is the tricky part as most annuity companies are reluctant to refund your principle.

CnC
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Re: How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?

Post by CnC » Tue May 15, 2018 12:55 pm

snackdog wrote:
Tue May 15, 2018 12:38 pm
CnC wrote:
Tue May 15, 2018 12:32 pm
Seriously though has noone mentioned annuity option.


I'm betting the op could spent a million dollars and easily buy an annuity that would pay him 40k after tax a year.


A 40 year old could buy an annuity for 1 million that pays 46k a year for life.
If he is old enough he could get an annuity that pays him $60K or more per year for life. He would love this. However, he has further stipulated he wishes to preserve his $1MM principle. That is the tricky part as most annuity companies are reluctant to refund your principle.
Ahh that's quite a quandary. Well if anyone happens to find a guaranteed 4-6% return on principle after tax with guaranteed no loss to principle let me know.


I have once that's guaranteed 7.5% return with no risk of loss but that's limited to 10% of my income per year.

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Re: How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?

Post by HomerJ » Tue May 15, 2018 1:04 pm

jacoavlu wrote:
Tue May 15, 2018 12:12 am
slipp1229 wrote:
Mon May 14, 2018 11:53 pm
advice on how to generate $40-60K from $1,000,000
50-50 equities-bonds, withdraw 4%. So years more than $40k, some years maybe less, but long term data suggests this can be done.

But there’s downside risk. You’ll have to take some risk to get those returns.
This. $1 million can easily generate $40,000 a year with a 50/50 portfolio. You'll get 2.5% or so in dividends, and you can sell 1.5% more to get to 4%.

And the odds are very high that your principal will grow over time. But it's not guaranteed. It may dip or even crash below the $1 million mark for a bit, hopefully gaining it all back later, but there is a very small, but non-zero, chance that it could crash below $1 million and continue to drop, until it's all gone 30 years from now.

I mean we're talking very good odds (like 95% range) in your favor, but it's not guaranteed

If you go to 5% or 6% withdrawals, the odds get worse for you. Still pretty good odds (above 50%-70%), but not as good as 4% withdrawals.
Last edited by HomerJ on Tue May 15, 2018 1:08 pm, edited 1 time in total.
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Re: How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?

Post by skepticalobserver » Tue May 15, 2018 1:06 pm

How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?

I'm keeping a close on on the replies to this one 'cause I'd like to know. If you can moderate expectations, I think one year t-bills might go to 2.50% soon ($25k p/year) and eighteen month treasury strips should hit 3% (?). As you know, with these treasury issues there's lots of liquidity and low duration.

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Re: How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?

Post by aristotelian » Tue May 15, 2018 1:18 pm

CnC wrote:
Tue May 15, 2018 12:32 pm
Seriously though has noone mentioned annuity option.


I'm betting the op could spent a million dollars and easily buy an annuity that would pay him 40k after tax a year.


A 40 year old could buy an annuity for 1 million that pays 46k a year for life.
I thought of that but not sure if that counts as principal-protected. When he dies his heirs will be left with zero.

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Re: How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?

Post by ralph124cf » Tue May 15, 2018 1:35 pm

I saw a sign in an auto mechanics shop: We work good, fast, and cheap. Pick one.

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Re: How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?

Post by WanderingDoc » Tue May 15, 2018 1:38 pm

slipp1229 wrote:
Mon May 14, 2018 11:21 pm
Hello
... investment that would provide a Low Risk, Principle protected investment that would provide a 4-6% after tax, annual return to supplement my current retirement income.
...
Wouldn't we all? :P
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Re: How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?

Post by JoeRetire » Tue May 15, 2018 2:17 pm

CnC wrote:
Tue May 15, 2018 12:32 pm
I'm betting the op could spent a million dollars and easily buy an annuity that would pay him 40k after tax a year.
Do you know of any annuities that are "Principle protected", as required by the OP?

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Re: How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?

Post by The Wizard » Tue May 15, 2018 3:45 pm

JoeRetire wrote:
Tue May 15, 2018 2:17 pm
CnC wrote:
Tue May 15, 2018 12:32 pm
I'm betting the op could spent a million dollars and easily buy an annuity that would pay him 40k after tax a year.
Do you know of any annuities that are "Principle protected", as required by the OP?
Even "Principal protected" ones are hard to find...
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Re: How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?

Post by Hogan773 » Tue May 15, 2018 5:07 pm

I have high Principles too and I try to protect them

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Re: How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?

Post by MossySF » Tue May 15, 2018 5:19 pm

JoeRetire wrote:
Tue May 15, 2018 2:17 pm
CnC wrote:
Tue May 15, 2018 12:32 pm
I'm betting the op could spent a million dollars and easily buy an annuity that would pay him 40k after tax a year.
Do you know of any annuities that are "Principle protected", as required by the OP?
Fixed annuities are principle protected as long as you stick below the state-guarantee limits. So for $1M, you could open a fixed annuity in 4 different states. But whether the rates are 4% after-tax, I don't know.

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Re: How can I clear $40-60,000/yr with $1,000,000 cash... Low Risk?

Post by Watty » Tue May 15, 2018 5:42 pm

One thing that has not been mentioned is that if you have a 4.5% mortgage then paying that off could in effect get you the return that you are looking for.

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