Wouldn’t it be great if you could just sit at home and enjoy your day while still being paid to do so? This is the dream of so many who work regular office jobs day in and day out. It is an understandable fantasy, but most chalk it up to just that. They say that it is nothing more than a fantasy and probably not worth giving a whole lot of thought. That being said, there are ways to actually make this happen.
Investing for income is something possible for those who have been good savers and have some extra money to put into the market. They would seek out something known as an income fund or an income portfolio. Many different mutual fund providers offer these types of funds, so you would need only to decide which one you want to go with. The best choice is probably the one that offers the fewest fees and has a strong track record of performance.
An income investment fund seeks out investments that provide income just for holding them. This might include high dividend pay stocks, bonds, or even government treasuries. These are all investment vehicles which provide an income for those who invest in them.
If you have a decent amount of money in these funds, then you can expect a nice monthly return on your investment. In fact, some are able to generate so much of a return that they do not have to work anymore. They can just live on the income that they bring in from their investments.
A lot of pulling this off has to do with establishing how much you need in order to live comfortably in a given month. If you can determine that and also determine what percentage return you can expect from an investment fund, then you can do a simple math equation to figure out if this might work for you.
Perhaps you need three thousand dollars in order to live monthly and you expect a 1% monthly return on your money, then you would need $300,000 invested in the fund to make this happen. It is a lot of money, but it could mean that you would not have to work anymore in order to make the money you need to survive.
This type of investing is not for everyone, but it is a relatively safe way to do it. It requires less risk and yet can still generate returns that you need to live comfortably.
David Milberg is a financial analyst in NYC with nearly 3 decades of experience in the finance industry. He is a long-time owner of Milberg Factors, a factoring and finance company with locations in New York, California, and North Carolina.