$75K per Year
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Thread: $75K per Year

  1. #1
    Senior Member tygrus's Avatar
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    $75K per Year

    I am looking for ideas to generate $75k per yr off $1MM. Not going to invest for 3% yield, need more than that.

    What funds would you suggest to give such a return. And since a portion of the yield is going to my mortgage, ROC is fine.


  2. #2
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    A safe, consistent 7.5% per year?

    Yeah, I'll take that too, please and thank you.

  3. #3
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    Some Couch-Potato portfolios yielded in the 6.5% range last year.
    http://canadiancouchpotato.com/2017/...urns-for-2016/

    To get in the 7% to 8% range you're going to have to rely heavily on equities, and that will not be safe or consistent.

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    Senior Member zylon's Avatar
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    http://www.centurion.ca/

    I've owned the Apartment REIT since 2010.

    • monthly payments like clockwork into my account
    • 8% per annum
    • mostly ROC
    • plus about 20% growth since 2010


    Sometimes they close the Apt REIT to new investors - I think it's open now.

    Other options are the two Trusts, which I'm not familiar with.

  6. #5
    Senior Member tygrus's Avatar
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    Quote Originally Posted by gardner View Post

    To get in the 7% to 8% range you're going to have to rely heavily on equities, and that will not be safe or consistent.
    Returns are not the same as yield in my view. Pure yeild is what I want.

  7. #6
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    This isn't something you want to jump into, but if it were me I would look at adding some low-moderate risk options strategies. You can write some pretty high probably covered calls or puts to squeeze out 5%-6% annually which should help get you to your goal assuming your portfolio holdings are yielding 2.5%-3%.

    Some REITs and Pref shares as part of the mix will help push up your average yield but it wouldn't be prudent to chase those yields and make that the majority of your portfolio.

  8. #7
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    7.5% good luck lol. I would aim for 4-5% and then take the remaining 2% through ROC or depletion.

    http://www.gordonstirrett.com/calcul...wal-calculator

    using this calculator and 5% return compound your 1 mill would last you 22 years.

  9. #8
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    Quote Originally Posted by tygrus View Post
    Returns are not the same as yield in my view. Pure yeild is what I want.
    Some things to look at:
    - Closed end split preferreds
    - Preferreds
    - Convertible debentures
    - Funds like say SIN.UN that contain a basket of high dividend payers plus REITs. (currently 7.33% yield of which about 25% will likely be ROC)

    You won't likely get 7.5%, but maybe 5.5%?

    If you want to pay off mortgage, presumably this will be in a taxable account. No immediate tax on ROC, but your acb will go down and if you sell sometime down the road, you may owe significant CG taxes.

  10. #9
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    You don't say outright but I am assuming you are now retired? If that is the case then I suspect almost any financial advisor would tell you to pay off the mortgage first. You also don't state approx how long you suspect your lifetime will be but you need to factor that in as well. And as the others state here I think you're pushing it to expect more than 5% in the long run.


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