Question: Can I Live Off Investment Income?

You cannot live off portfolio income until you have accumulated a portfolio large enough to generate the amount of income you want or need.

That depends on both the rate of return you could earn and your income requirements.

As of 2013, investing in conservative government bonds would earn you 1 to 3 percent.

How much money do you need to live off investments?

Get a good estimate by dividing your annual desired income by the expected yield. For example, if you want $10,000 a month in investment income, divide $120,000 ($10,000 x 12 months) by the yield (5% in this example) to get the amount of money you’ll need to live off investment income, or $2,400,000.

Can you make a living off of investing?

To live off your own investment portfolio you first need that portfolio. That means you need lots of money. It takes money to make money. If you want to earn the average return of the large US corporations represented in the major stock exchanges you can hope to make from 10 to 20 percent per year return on investment.

What is the best investment for monthly income?

Some of the key investments that make a monthly income include:

  • Certificates of deposit.
  • Bonds.
  • Floating rate funds.
  • Dividend-paying stocks.
  • Real estate investment trusts.
  • Master limited partnerships.

How much interest does 1 million dollars earn per year?

That would translate into $14,579 of interest on one million dollars after one year of monthly compounding.