How do I establish a monthly revenue stream

[DREAMWEAVER6477]

I have a financial advisor who in my opinion isn't doing much for me. I have $200,000 with him in a well balanced and diversified stock portfolio. My concern is, the current state of the market today. I realize how good it looks on paper, but I am concerned about it's future under the current administration. I'm 66 years old, debt free, and reside in a beach community with my property being valued at $700,000.00. Obviously I can begin redrawing the portfolio any time, but what concerns me is the possibility of the value going down in the future. How could I better invest the $200,000.00 in your opinion.

 

[MichaelB]

Dreamweaver, are you asking specifically about preferred stock, or is this a more general question? It might be better off as a separate thread.

 

[Mulligan]

Dreamweaver, are you asking specifically about preferred stock, or is this a more general question? It might be better off as a separate thread.

I agree Micheal. Especially when the words "dont want to lose any money" are mentioned...Glad to see you stop by Micheal. Now where are your preferred tips? You just made me think with you being a moderator (and a good one, I may add) this thread hasnt seemed to cause any Porky threats like healthcare threads, lol.

 

[DREAMWEAVER6477]

Dreamweaver, are you asking specifically about preferred stock, or is this a more general question? It might be better off as a separate thread.

I'm wondering whether or not I should in in stocks at all at this point,due to the volatility and flexibility of the market. I guess what I'm asking is if I should be placing this investment into something more stable at this time of my life.

 

[aja8888]

I'm wondering whether or not I should in in stocks at all at this point,due to the volatility and flexibility of the market. I guess what I'm asking is if I should be placing this investment into something more stable at this time of my life.

Ally Bank is offering 1.5% CD's for 11 months (No Penalty) duration at this time. It's safe and liquid. Or you can buy a few preferreds and have interest rate risk. Or you can be like Mulligan and spread your risk by betting sports in Las Vegas.

 

[MichaelB]

Dreamweaver, this topic is better off as a separate thread, so I'll move it into the FIRE and Money forum.

 

[Scuba]

Have you asked your FA this question? Nothing wrong with seeking advice here, but since you already have an FA who is presumably familiar with the details of your specific needs, I'd definitely want to know how they suggest you generate the income stream you desire and what asset allocation they think is appropriate given your situation and risk tolerance.

In my opinion it depends on your risk tolerance and longevity expectations, plus when you need to draw from the portfolio. If these are the only funds you have apart from your property, 100% equity portfolio sounds aggressive. However if you can cover your expenses with a pension/Social Security and/or other resources, staying in equities could make the money last longer.

One can create an income stream with bonds/bond funds, CD's, dividend-paying stocks or ETF's, rental property, and lots of other ways. It's difficult to answer your question fully without knowing a more complete picture.

 

[Gumby]

You could also do something like the Vanguard Managed Payout Fund (VPGDX), which is designed to pay monthly at a 4% annual rate.

https://personal.vanguard.com/us/funds/snapshot?FundId=1498&FundIntExt=INT

 

[racy]

If you're looking for an income stream, then an immediate annuity would pay $1000 or more per month for your life.
https://www.immediateannuities.com/

 

[pb4uski]

How much do you need or want to draw? Do you want this income stream to increase with inflation?

If you need or want draw ~ 4% ($8k a year) and you want your withdrawals to increase with inflati so their spending power is constant, then you need to have some amount of equities and live with a bit of volatility. If that is the case then it sounds like your FA is doing good by you. If you want to DIY you might consider Vanguard's Wellesley Income Fund.

 

[Blue Collar Guy]

I have a financial advisor who in my opinion isn't doing much for me. I have $200,000 with him in a well balanced and diversified stock portfolio. My concern is, the current state of the market today. I realize how good it looks on paper, but I am concerned about it's future under the current administration. I'm 66 years old, debt free, and reside in a beach community with my property being valued at $700,000.00. Obviously I can begin redrawing the portfolio any time, but what concerns me is the possibility of the value going down in the future. How could I better invest the $200,000.00 in your opinion.

Seems like a backdoor political post. So ill continue your thoughts, the market is up about 14 % since the election. Id say you hit a home run. Cashout , wait for a new administration.

 

[dtbach]

You should be able to set up a monthly (or quarterly) withdrawal at 4% and just have it sent to your bank. Sell about $10 or $12K and put it in a cash fund and then take out your $665/mo from that fund. Then just sell as you need and fund it. I've done this with both Vanguard and Fidelity accounts.

 

[wolf]

If you're looking for an income stream, then an immediate annuity would pay $1000 or more per month for your life.
https://www.immediateannuities.com/

My 2 cents, No.

 

[Koolau]

I'm wondering whether or not I should in in stocks at all at this point,due to the volatility and flexibility of the market. I guess what I'm asking is if I should be placing this investment into something more stable at this time of my life.

We probably don't have enough info about your situation. If you have, say, SS and a pension ("good" income) then you can afford to be more aggressive with equities. If your only assets are $200K in equities and a $700K beach house, then you may be "house poor."

Too little info for any reasonable evaluation - and keep in mind, you aren't paying us like you are your FA. What we come up with is worth what you pay for it! YMMV

 

[haha]

Too little info for any reasonable evaluation - and keep in mind, you aren't paying us like you are your FA. What we come up with is worth what you pay for it! YMMV

Absolutely! And following that excellent logic, why not see if you can find a more expensive FA?

Ha