“How much money do I need to invest to get $1000 in return per month?”The risk-free interest rate is about 2.5% right now. That is per year, so to find out what you would need to invest, just divide 0.025 by 12, giving 0.00208333… Then divide 1000 by that, giving $480,000 and change. That would be for buying US Treasury Bills or long-term CDs.To be fair, interest rates are likely to rise. The long-run historical average risk-free rate is about 3%. Re-running the math gives $400,000.To get $1000 per month with a smaller investment, you have to take risks. The US stock market as a whole has had a long-run historical average return of 7%, but there are good reasons to think that may be smaller in the future. And remember, you may actually lose money in any given month or any given year.Individual stocks have done much better in the past, but such a stock may not continue to do well in the future. The consensus view is that very few retail investors manage to beat the long-term market averages, and the harder you try, the more likely you are to lose money. It really is best for the average retail investor to buy and hold one or a few index funds.Remember also, you have to pay tax on your interest income or your stock dividends and capital gains. That will knock down your net return and thus increase the size of your needed investment.EDIT: And, as Xavi GV points out, you can’t forget inflation. In the last 40 years, in the USA, the return on a risk-free investment has been totally eaten up by taxes and inflation. So if you want to preserve your capital, you can’t afford to spend any of the interest.EDIT: Do not trust Drina Romero. She is a scam artist.
When I turn 72 & 1/2 my Husband will be 90 and we have to take out our 403b and IRA , what are the number of?
when one is 72 by April 15 of any year, they are r'qrd to withdraw the minimum amount from their retirement account this means a calculation based on the balance at Dec. 31, your age etc and amounts are calculated which if you are not in need, you can withdraw the absolute least amount, called the RQMD
Help perpetuity & present value questions?
1. Curly’s Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $39,000 per year forever. Assume the required return on this investment is 6.4 percent. How much will you pay for the policy? 2. Assume a football player signed a contract worth $68.60 million. The contract called for $18.75 million immediately, $7.60 million in 2008, $8.10 million in 2009, $7.40 million in 2010, $7.90 million in 2011 and 2012, and $10.95 million in 2013. If the appropriate interest rate is 10 percent, what is the present value of the deal? Assume all payments other than the first $18.75 million are paid at the end of the year. What is the present value? Please show working so I can understand, thank you!
Keep the majority of your $30k capital as emergency funds.You want a full time thing? Look at what you are already doing or love doing right now. Then see which of these you are good at and had helped others with. Perhaps you are good with helping others find a job, or train their cat, or organise their house. Take what you are good at and create a service with it. Here are some ways to get business:Start with your friends and family and get them to share it for you. Join Facebook groups on the topics around your service and talk to people thereParticipate in forumsGo one-to-one, face-to-face. Approach people and talk to them.Go to local meetups. You can find one at MeetupUse Coach.me to provide coaching services Initially, just provide value to these people you meet. Build trust and rapport first. Don't worry about the money. Remember this, the less you think about money, the less you HAVE to think about money
$5000/month=$60000/yearThat, already being a decent salary considering no work is involved, is already looking to be more appealing, especially once I combine it with my actual salary.At 60K each year, the $1 million figure is surpassed at just year 17. Being 17 years old currently, I certainly hope that my life is not half-over at this point, because I have wasted far too much of it sitting through the remedial courses I’m required to take in high school.Next, assuming I retire at 65 (although considering my anticipated job security I might never retire; who wants to sit around all day doing nothing anyway amirite?), starting this month would net me $2,875,000 which, after taxes would amount to about $2.16 million. This is if it just sits in a safe in my house.However, I could probably put this into any decent savings account and be able to increase the net worth of the original investment up-to-ten-fold depending on my interest rates.For example, assuming 5% interest compunded annually, I would net approximately $11.8 million by the age of 65. Assuming 7% interest compounded annually, I would net approximately $22.6 million by the same time. This is before taxes but that’s still a comfortable living as long as I can pay for all of my regular expenses out of my salary.Next, a look at how much I could make investing in gold. I’m no expert, but based on my calculations assuming approximately 2% inflation per year (about 250% by 2065), I estimate a very comfortable lifestyle by 65 if I play my cards right.Remember, all of this has only been calculated until I’m 65 years old. I certainly hope that I will live that long, but I wouldn’t be surprised considering my lifestyle, genetics, and rising life expectancy if I lived to be 100 years old or older.Thanks for this great question, I love spending time working out complex stuff like this. To officially answer your question, I hope it would be clear that for a young person $5000/month is a much better deal in the long run.
401k Withdrawal at 61, am I subject to penalty?
You're no longer subject to the penalty, however 20% will be withheld on most distributions. You'll settle up with the IRS at filing time. This withholding is exactly the same as withholding from wages and will be reported on the 1099-R that you will receive early next year. It's NOT 10% for tax and 10% for penalty as some folks think, just a flat 20% withholding regardless of whether you're subject to the penalty or not. Edit: If they took more than 20%, you must be subject to State income taxes on this. And with 10%, it looks as if you live in CA; most state income taxes are less than 10% but CA does top out a bit over 10%.
The best retirement investment strategies are ones that will generate enough income in your retirement years to support your lifestyle, health, etc.Contrary to popular belief this does not have to be investing in stocks or investing in real estate.With the way technology is now and the way it will be in the future, there will be many different strategies you can choose from to earn a nice living for you and your family.Two bits of advice I’ll offer for any strategy you choose.Make sure the strategy fits with your personality and is one that you can be passionate about. If you are doing something you are truly passionate about, the money will come soon enough. But the passion will get you through the inevitable rough patches.Practice good money management. Learn to save and learn to live below your means. Having cash on hand will be key when it comes time to take advantage of some strategies. Also by learning how to manage your budget now, you will build the skills needed to manage your empire.To give you some specific ideas to get started:There are people making a living doing internet marketing.Check out Pat Flynn’s income reports at The Smart Passive Income BlogYou can buy and sell websites like people buy and sell houses. Check out Flippa #1 for Buying and Selling Websites, Domains, and AppsYou can sell items on amazon or ebay or etsy, etc. I have met people that do this fulltimeYou can publish ebooks and earn some $These are things you can work on now and don’t have to wait until “retirement” to get started.Follow me on Quora if you liked this post.
Request for LIC Insurance investment advice. ULIP or Conventional?
ULIP stands for Unit Linked Insuarance Plans which are essentially insurance plus invesment plans. What you need to realise is that the returns that have been communicated to you are calculated on an assumed annulized rate of return which may or may not be your actual rate of return. So i would suggest instead of going by the benefit illustration shown to you, ask them about the rate of return that has been used in the calculations. Comparing that with the current rate would give you a fair idea about the kind of returns that you can expect. Also what you need to ensure is that the charges that they levy on your plan have been deducted form the amount before being shown as investment for a particular year. These plans also have some four or five funds with varying percentages of debt and equity investments according to which the returns can vary. So you also need to ensure that the benefit illustration being provided to you is for the fund that you are opting for. Lastly such a plan can give you returns amounting to 10,00,000/- after 15 years but that depends totally on the funds performance and the actual amount (total invested amount - (insurance premium+loads)) that you have invested over the years.
If you hit the lottery for $42 million?
in ca for example, they show the cash pay-out along withn the jackpot amount. depending on where treasury bonds zero coupon rates are trading, they calculate the present value of those 26 payments. the higher the interest rates, the less is the present value of that payment stream. now it's appx at 57.77% of the jackpot BEFORE FEDERAL TAXES. in ca, they don't charge you a state income tax for lottery winnings. you will be liable for the federal tax. in ca, they deduct a flat 25% for federal taxes. but you may still be liable for the top tax rate of 35%. if you win ( hopefully), you will get a check for 0.5777* 0.75(1-0.25=complement of 25%)= 43.3275 % of the jackpot. ATTN : I DON'T KNOW IF FOR FEDERAL TAX PURPOSES, THE MAXIMUM TAX RATE IS 25% OR NOT. MAYBE LOTTERIES HAVE A SPECIAL EXEMPTION FROM BEING TAXED AT THE MAXIMUM INCOME TAX LEVEL OF 35%. IF NOT, THEN YOU PAY A TAX OF 35% AND NOT 25%. SO YOUR AFTER TAX LUMP-SUM WINNINGS WILL BE 0.5777*0.65( 1-.35= complement of 35%)= 37.5505%. if 25%, your after-tax winnings will be $42mm * 0.433275= $18.19755mm if 35%, your after-tax winnings will be $42*0.0.375505=$15.77121mm .
Help with nominal sum, compound interest(due and ordinary)/annuity rate, rate of return ? i am confused.?
In binary options you will have the possibility to predict the movement of various assets such as stocks, currency pairs, commodities and indices. Learn how you can make money trading binary options https://tr.im/EkqJm An option has only two outcomes (hence the name “binary” options). This is because the value of an asset can only go up or down during a given time frame. Your task will be to predict if the value of an asset with either go up or down during a certain amount of time.