Investing may seem a pretty straightforward venture until you try to figure out the kind of investment that will be able to generate for you monthly earnings. Today, investing is not just about putting in the capital in there and then waiting for returns to come. Investing of today should be in the context of being able to earn monthly returns from the investment.
So how can you actually find an investment that will be able to pay you monthly earnings that you can live off of? Below are some 10 best low investment tips for getting regular monthly income:
- Invest in fixed deposits:
fixed deposits are usually popular and common because they don’t pose much risk to the investor. Fixed deposits usually offer a fixed rate of interest on the investor’s money when that money is fixed for a certain period of time. Interests that are gotten from fixed deposits may sometimes be yearly, quarterly, or even monthly.
2. Invest in bonds:
there are various options to investing in bonds with the intention of getting off monthly income. You can for instance own government, municipal bonds, or agency bonds. It is however not a good idea to buy bonds that have maturities of five years or more because this way you will be faced with duration risk.
3. Invest in real estate: the other way that you can invest to get regular monthly income is to own a rental property. The real estate sector has got its own rules of taxation and once you learn the secrets involved, you will find that it is one sector that usually has somewhat natural protection against rising inflation rates.
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4. Dividend paying stocks:
you can invest in the common stocks as well as preferred stocks in order to earn monthly income. Companies that feature these stocks usually offer a portion of the profits that they make to their shareholders with regards to the shares each shareholder holds. When choosing a company to invest in it is best to choose one that feature a safe dividend payout ratio.
5. Mutual funds:
you can invest in mutual funds that are offered by a number of financial firms. Yes, there financial firms that have mutual funds they have designed in ways that produce monthly income to their clients.
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6. Put your cash in money markets and certificates of deposits: money market accounts as well as certificates of deposit offer safe investment havens that you can rely on for monthly income. The advantage of them is that they are insured by FDIC (Federal Deposit Insurance Corporation).
7. Buy monthly income funds: there are some monthly income funds that offer to provide the investors a monthly income. There are also property funds that pay out dividends on a monthly basis.
8. Build a portfolio of funds: you also build yourself a portfolio of income generating funds and trusts that will give you dividends at different times of the year.
9. Dividends from equity:
they are risky but for those who have the knowledge and skill to manage them can still be able to make monthly income from them.
10. Annuity from insurance companies:
it is also another good method you can generate a regular stream of monthly income. It is important however to note that the option usually take a rather long time for it to generate income to the investor.