Is it in the realm of feasible to invest ~400k in a way that it can distribute ~2k monthly and still grow or maybe maintain? In order to balance my budgets the way I want I can either recast my mortgage and drop another 400k in lowering my monthly by 2k or I'm trying to learn about smart alternatives. Should I seek a financial advisor? What's the right way to find someone effective for this goal who isn't going to just try and sell me life insurance...
sell puts
This is a decent strategy. But be careful of black swan events...you should probably reinsure your position by buying longer term puts. My own personal opinion btw
When you have a bull market, selling puts and rolling them would actually yield less than just buying and holding. Someone had done a backtest on S&P 500.
Lol hahahaha. A stable 3% dividend would yield $1000/month as passive income.. You can always invest In real estate and other higher risk to fetch 8% cash on cash return.
What about a blend of stable dividend and other higher risk growth?
This is a great option. Diversification! Your yield would then be between ~3-8+% depending on your allocation
SPG, O, FRT, ESS, EQR, PM, MO, VNQ, VYM
Why do you think these are good options?
First 5 are REITs with high dividends and great balance sheet. Stocks are a down due to covid but will rocket back up once covid is over.
You can definitely do this via real estate
Why happens when your tenants stop paying?
Get new tenants
Alternative investments like private credit and real estate syndication. Real estate is a little better because partnerships usually offset cash flow with depreciation to reduce your tax burden. The only caveat is liquidity.. you will find it hard, if not impossible, to exit unless there's a liquidity event like a sale or full loan repayment
What are your thoughts on withcadence.io? They tend to be much shorter term (some are only 3 months) so I’ve been thinking of using them for my savings for estimated tax payments.
+1 to real estate syndication. It can get you the the cash flow you want passively investing with the upside of tax incentives. The liquidity event usually gives you additional forced appreciation at the end. I do this actively and passively. PM me for more info.
You would need to get really lucky
Dude buy a house and rent!! 200k, easily 1.2k per month. get two and you are good! Do not buy in california, buy in a place where evictions are easy and is a landlord friendly state.!
It's not going to cash flow though. After paying that mortgage + other expenses
Do you know any such locations?
Well, I was in a similar situation in 2013, and that time I worked for EMC. One of my office colleagues referred me to an investment website Stock Buzz Now, where they build and track a portfolio that you can mirror or select picks from on a monthly basis. I started slowly at first, and after 6 months realized I would be better off mirroring them. Not only are the returns spectacular, but their approach through market Ups and Downs is amazing. Almost my entire team at EMC followed them, and now half my team in my current company. You may give it a shot, I think they still offer Free Trials too. You may even discuss your personal situation with them and they will help out. https://www.stockbuzznow.com
Great to see others following SBN. I joined them only 2 years back through referral and only wish I knew about them earlier. How they managed TSLA and SHOP has been amazing, but I was not a member then. Bill, did you follow them on these 2 picks too?
Hi Rodrigo, I followed them on SHOP and still holding. Unfortunately, I missed out on TSLA as I personally was not convinced. I should not have gone against them on it as they picked it really low and multiple times there after. But no regrets, as it was a learning for me that sometime over valued stocks can be great too. Now, I have just been mirroring them.
Following
Buy Verizon stock.
Tell more as to why please?
Dividends paid out quarterly and stock is steady