How much annual income can i make if i invest $100,000?
Answer:
The formula to figure this out for ANY AMOUNT is :
100,000 (or the amount you want to know about) divided by 2 and drop a zero. This will the amount you can expect to earn on the interest of any amount you invest. Of course a bomb of a stock will prove this formual wrong but this is the standard formula / rule of thumb for any amount.
Lets try it again only a different view, figuring it in the reverse order : Say you want, at retirement $50,000 a year to live on. You wonder how much you will YOU NEED INVESTED / saved to make this much and not have to work. Take 50,000 multiply it by 2 and add a zero = 1,000,000 would be your answer.
Easy as that ! Happy Investing ! : )
you can make more if you put money in an IRA
depends where u r investing it.
How much risk do you want to take?
With no risk you can make approx. $5,000 by putting the money in Treasurys.
With this much money invested at say 10 % you should be able to get a return better than what the banks pay. Lets say they will give 3% you will be getting 7% more which is over 2 times as much plus 1% so your $100,000 is now $200,000 + 1% more which fwould probably add another $2000 so now you have $202,000 which you could invest at the 10% and just keep doubling like before. This can add up to a lot of money in a short time.
There are still places where you can find real estate property
for $100K that will return you over $10K cash yearly after
expenses, plus appreciation. It is not easy to find and you'll have
to do a lot of research.
I can show you how to make that per month.
You can't put $100,000 in an IRA (annual limits are $4,000 & $5,000).
I'd say you can expect to draw about $4,000 to $5,000 in annual income on $100,000 (increasing each year for inflation). This assumes you maintain a diversified portfolio.
If you aren't concerned about preserving your principal, then you might consider an immediate annuity if you're older than 59.5. Not my first suggestion, but it does eliminate market risk.
In the past, you would have made $15,000 to $25,000 every year investing $100,000 with this strategy:
http://www.inside-alpha.com/support-file.
http://www.inside-alpha.com
The $15,000 to $25,000 would have been mostly capital gains, usually taxed less than dividends and interests.
Let's make money!
Good luck
Marc
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