I am in a quandry. I have cancer and prognoses is not good. I am in process of setting up a Trust for my son and need to create an income stream for him. He is not disabled enough to collect any sort of gov. disabillity, but disabled enough to not be able to hold a job due to severe attention deficit. He can't follow instructions well and always winds up being let go cause he messes up no matter how hard he tries, plus there are other issues.
I do plan on purchasing a portion of dividend stocks, but it is hard to do so now with current high valuations on most. So I am concentrating on the income portion. I need to generate at least $36,000 a year for him. (out side of stocks) I am not interested in bond funds right now, because I need monthly income. I have looked at the Lehman Bros 25 yr bond paying 7%. That is a long time (25 yrs) but I think they will survive the sub prime business ok, and long term in this case is good as my son is only 28yrs. old. He will be alone, as his father died and has no brothers or sisters.
Like your thougts on both preferrds and long term bonds. Preferds pay nicely, but my main concern with them is they can stop thir dividend payment (up to 5 yrs) if need be, and he would be depending on this income than I would or I should say my son would be in a pickle. Treasury's and tips just don't pay enough, especially with inflation and now is not a good time for bond funds.
Please anyone with some "income oriented experience" give me some guidance and thoughts on the above.
I should add, I am not contemplating just one bond or preferred, but maybe probably fifteen to twenty different ones over the next year or so for diversification and spreading risk.
I do plan on purchasing a portion of dividend stocks, but it is hard to do so now with current high valuations on most. So I am concentrating on the income portion. I need to generate at least $36,000 a year for him. (out side of stocks) I am not interested in bond funds right now, because I need monthly income. I have looked at the Lehman Bros 25 yr bond paying 7%. That is a long time (25 yrs) but I think they will survive the sub prime business ok, and long term in this case is good as my son is only 28yrs. old. He will be alone, as his father died and has no brothers or sisters.
Like your thougts on both preferrds and long term bonds. Preferds pay nicely, but my main concern with them is they can stop thir dividend payment (up to 5 yrs) if need be, and he would be depending on this income than I would or I should say my son would be in a pickle. Treasury's and tips just don't pay enough, especially with inflation and now is not a good time for bond funds.
Please anyone with some "income oriented experience" give me some guidance and thoughts on the above.
I should add, I am not contemplating just one bond or preferred, but maybe probably fifteen to twenty different ones over the next year or so for diversification and spreading risk.