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Monthly Income
Old 04-25-2006, 10:04 AM   #1
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Monthly Income

I realize there are broad range of vehicles to generate monthly income but could some of you share your thoughts on what you're using?
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Re: Monthly Income
Old 04-26-2006, 06:24 AM   #2
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Re: Monthly Income

Hi Tony

I am going to ER beginning of next year and I plan to use a CD ladder (with 3% bump) to fund my first few years. It is safe (aside from interest volatility - and even there if interest goes to the moon I'll take the 6 month penalty hit and re-invest) and easy to set up and currently pays as well as bonds (5.2 or so currently) for shorter durations. It also allows me to leave my portfolio untouched.
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Re: Monthly Income
Old 04-26-2006, 07:06 AM   #3
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Re: Monthly Income

A really excellent way to have monthly income that is also pretty easy to set up is to do what I do now: I have a job.
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Re: Monthly Income
Old 04-26-2006, 07:20 AM   #4
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Re: Monthly Income

Quote:
A really excellent way to have monthly income that is also pretty easy to set up is to do what I do now: I have a job.
This is what i was thinking.* I couldn't think of a way to say it without it having the "like duh!" effect, so i'm glad you did first.
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Re: Monthly Income
Old 04-26-2006, 07:25 AM   #5
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Re: Monthly Income

Quote:
Originally Posted by LOL!
A really excellent way to have monthly income that is also pretty easy to set up is to do what I do now: I have a job.
I had one of those for decades and found there are downsides to the strategy - see other posts on this forum for more on that.
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Re: Monthly Income
Old 04-26-2006, 07:32 AM   #6
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Re: Monthly Income

Our Monthly Income consists on payments from Income Trusts, Dividends from stocks, Bond Interest from a Laddered Bond, small pension, plus some earnings from Part Time Work.

Cash kept in ING is there, if needed, plus Line of Credit for unexpected bills.
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Re: Monthly Income
Old 04-26-2006, 07:41 AM   #7
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Re: Monthly Income

Hmmmm

I usually watch the Wizard od Oz annually when it's rerun time on tv.

There is behind the curtain and it front of the curtain - my SO, and Mother (now decreased) and step daughter in spare room always thought in terms of income (ala payments on a regular basis). Also my sister to the extent I can determine.

I think *more ??(give me a word here) - it terms of : swag the cost of living for a year/ effect on overall ER porfolio/run high/low expected return out to a predetermined croak at 84.6.

Hence - 12/31 portfolio worth is dinged for a year in jan - put in VG Prime MM and doled out to checking each month.

Trying 5% of portfolio this year.

ala POGO - why are you asking question? My problem - I view every nickle I spend as a nickle of principle capible of generating div/interest. Hence spending of any kind is painful.

Trying to overcome it though.

heh heh heh heh - annual portfolio ding to MM to checking on a monthly basis - manually right now.
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Re: Monthly Income
Old 04-26-2006, 08:33 AM   #8
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Re: Monthly Income

Quote:
Originally Posted by LOL!
A really excellent way to have monthly income that is also pretty easy to set up is to do what I do now: I have a job.

* Sorry to hear that!* Play your cards right and you'll be able to ER and not have a job!
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Re: Monthly Income
Old 04-26-2006, 08:38 AM   #9
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Re: Monthly Income

Quote:
Originally Posted by LOL!
A really excellent way to have monthly income that is also pretty easy to set up is to do what I do now: I have a job.
Work?
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Re: Monthly Income
Old 04-26-2006, 09:19 AM   #10
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Re: Monthly Income

I unfortunately have a job...a pretty stressfull one at that and am thinking of
morphing into something part-time. Right now I am sitting on quite a bit of cash in a Fidelity MM and have some Canroys (small pwercentage) and some positive cash flow rental income. Some local banks here are offering 5.07% one year CD yields
paid out monthly, but I was looking for some other conservative ways to get
monthly income into the mix.
Thanks for all your opinions.
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Re: Monthly Income
Old 04-26-2006, 09:30 AM   #11
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Re: Monthly Income

Quote:
Originally Posted by Tony Tampa
I unfortunately have a job...a pretty stressfull one at that and am thinking of
morphing into something part-time. Right now I am sitting on quite a bit of cash in a Fidelity MM and have some Canroys (small pwercentage) and some positive cash flow rental income. Some local banks here are offering 5.07% one year CD yields
paid* out monthly, but I was looking for some other conservative ways to get
monthly income into the mix.
Thanks for all your opinions.
I think the problem you wll run into from the posters here is that most of us expect to get return from ou investment from both capital gains and portfolio income, not just the latter. However, if you wre hell bent on looking at income, here's a few ideas ranging from lower risk to higher to maui-wowie-does-that-pay-a-high-yield:

- ISM: these arre bonds that are listed on the NYSE. Issued by Sallie Mae, they are rated A2/A, mature in 2018, and pay a monthly coupon based on CPI plus 2.05%. For what reason I cannot fathom, they are selling at about 90 cents on the dollar (vs. par) so they actually yield (YTM) more like 3.3% over CPI. They look like I bonds on steroids to me and would be ideal for a tax-deferred account (fine in taxable, too).
- STON: an MLP that owns cemetaries. Pays out close to 10% (and rising) and is currently restating some past financials (minor, non-cash stuff). Big minus is the PITA at tax time, but its not that big a deal if you use turbotax (or hire an accountant). Taxable accounts only.
- EGLE: company owns dry bulk ships and pays out basically 100% of cash flow. Yields about 15%. Shipping is a more volatile industry and the stock (and payouts) will move with the charter rates owners can charge for their ships. EGLE reduces this inherent volatility by having longer term fixed rate contracts on its ships and maintaining lower levels of debt, but this will be more volatile. Dividends are all qualified (15% federal tax rate), so this is attractive in a taxable account.

Disclosure: I own all three of these.
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Re: Monthly Income
Old 04-26-2006, 10:00 AM   #12
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Re: Monthly Income

brewer 12345,

I read about your disclosure of ISM a few days ago and I agree it looks very interesting. I noticed also the thin volume
Good point on cap appreciation, too. I guess I need to push out of my comfort zone a bit.
Thanks for your selections.
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Re: Monthly Income
Old 04-26-2006, 10:11 AM   #13
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Re: Monthly Income

My portfolio is pretty much setup for retirement, which will be in a few years. I own a
collection of blue-chip REITs (CUZ, DRE, GGP, KIM, VNO, WRE) and regular companies
(C, GE, JNJ, KMI, PFE, WM), which will provide me with sufficient dividends to live
on. Most pay about 3-5%. This list occasionally changes when relative valuations
become extreme. I do not expect to ever touch the underlying stock, although I
could if needed.
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Re: Monthly Income
Old 04-26-2006, 02:41 PM   #14
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Re: Monthly Income

Quote:
Originally Posted by LOL!
A really excellent way to have monthly income that is also pretty easy to set up is to do what I do now: I have a job.
necessary yes, but excellent?
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