I am wondering what the best investment is for securing my 600k principal while receiving interest payments. Treasuries, CDs, annuities etc…
I’ve researched annuities which seem to have the highest interest rates. I’ve found a couple A rated companies in high 5’s. Treasury rates are low. Any help is greatly appreciated. Thank you!
Looking to live off of principal monthly interest.
byu/Diegshorses ininvesting
Posted by Diegshorses
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Having your $600k principal all in interest generating securities does NOT secure your principal against inflation.
That is why a balanced asset allocation of both stocks and fixed income (savings, bonds, etc) is recommended.
600k is a solid base, but living fully off the interest alone isn’t as easy as it sounds. Safe stuff like treasuries/CDs won’t throw off much, so annuities are where you’ll see bigger rates but they lock you in. Honestly best play is mixing a guaranteed chunk (for peace of mind) with something more flexible so you’re not stuck.
Find a trusted pro. If they sell you annuities you didn’t find someone trustworthy.
Put that money in SGOV in a Fidelity account while you find someone trustworthy. Best of luck.