<#-- Rebranding: Header Logo--> <#-- Rebranding: Footer Logo-->

What is the best way to invest $200,000 at 75 years old to get back income of $1,500 per month?

I am a 75-year-old male senior citizen with $200,000 in savings. What is the best way to invest this money to get back income of $1,500 per month?

Investing
Answers
Sort By:
Most Helpful
October 2018

Great question, the answer is two fold. Firstly 1500/mo =18000 annually which would imply an interest rate of 9%, which I will flat out tell you is impossible without exposing yourself to substantial risk. The good news is you may not actually need a 9% return, you just need 1500 a month for the rest of your life. We can assume about a 3% interest rate using high quality short term investments, under a 3% assumption you would be able to draw 1500 per month for 13.5yrs. 5% would last you 16.5 yrs and 7% would last you 22yrs. Hopefully that helps in your analysis as most retirees will spend down principal to meet their needs. Take a look at this annuity calculator if you would like to play with the variables, and this is not an indorsement of annuities just the components of principal and interest that make up a stream of income. https://www.bankrate.com/calculators/investing/annuity-calculator.aspx

October 2018
October 2018
October 2018
October 2018