Investors Need $2.9 Million for $8,450 Monthly Income, or $1 Million at 10% Yield
Updated
Updated · Yahoo Finance · Oct 1
Investors Need $2.9 Million for $8,450 Monthly Income, or $1 Million at 10% Yield
1 articles · Updated · Yahoo Finance · Oct 1
Summary
$8,450 a month in investment income equals $101,400 a year, requiring about $2.897 million at a 3.5% yield, $1.69 million at 6%, or roughly $1 million at 10%.
A blended seven-fund portfolio yielding 7.8% would need about $1.3 million, with PDI and HTGC generating nearly half of the income.
At the low-risk end, a 3.5% portfolio could still outpace a flat 10% strategy over time if dividends grow 8% annually, reaching about $202,700 in yearly income by year nine.
The tradeoff is risk and inflation: the 10-year Treasury yields 5.3%, consumer prices rose about 3% through August, and yields above Treasuries generally require taking on greater income-cut risk.