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Hello, I would like some advice. I have no investments or retirement programs. I am currently unemployed to stay at home with my toddler. I am a single mom. I am anticipating a large lump of money shortly, around 75k. I would like to invest some money into something that will pay dividends during my child's toddler and preschool years to help get me through until I can go to work. I am fascinated with international REITs should I invest in those or should I focus on trying to get IRAs etc since I have nothing set up for retirement yet and I am middle aged (40's)? Should I try to buy and manage physical real estate instead of passive dividends (it is not really my talent but I need something that gives monthly dividends quickly). Thanks
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I think you're getting way ahead of yourself. What is your current budget look like? Do you have debts or are you debt free. How are you currently living without working. We (and you) need to lay out your current financial situation in order to give better recommendations on where that $75k should go. -
I have been living with relatives who have helped me during my marital separation. I am now trying to get on my feet.. My current budget is very low because of my relatives help. I don't think it projects a realistic figure. I could get by carefully on $800 a month though. I am good at being thrifty.Comment
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So you're looking for an investment that'll give you $800/month on a $75k investment or a return of about 12.8%/yr? That doesn't project a very realistic figure.Originally posted by autumn2day View Post
Granted, there are some REIT's that do have that kind of yield but it may not be consistant and definitely may not be that in the future.
Investing some of the money might not be a bad idea but trying to find one that will sustain that type of income is very risky and I wouldn't suggest it.The easiest thing of all is to deceive one's self; for what a man wishes, he generally believes to be true.
- DemosthenesComment
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My relatives are able to make up the difference to make ends meet at the end of each month, but I want to be as self sufficient as possible. I don't have any debts which helps. I could try to economize a little more from the $800. I just hope to get as close to that goal as possible. How well can REITs realistically produce stable income? Are there any other investments which could do better?Comment
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Nothing is going to reliably provide you with 12.8% dividends each year.
This is not to say it is IMPOSSIBLE your portfolio won't return at least 12.8% annually, but it is highly, highly, unlikely. It's certainly not something you can rely on.
There are a lot of people who do invest for dividends. There are some really good blogs out there on the subject. Here are a few to check out:
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