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Discussion Starter #1
I have about $90,000 and need to produce around $300-400 of weekly income through investments, any ideas to how I could achieve this.

Thanks
 

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Discussion Starter #7
realize w/ $90k it is virtual impossible, if I was able to get the capital to $200k would it be more realistic?
 

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That linked article is surprisingly unhelpful, because it does not tell you the age at which the sample annuities are purchased. I can tell you that the figures (almost certainly) are for a 65-year-old male in good health, but it would be nice if the article did, too. And it would probably be useful to note that the age at which you purchase an annuity dramatically affects the payout rate/cost.

Back to the weekly income discussion...
 

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$400 a week is over $20,000 a year in income.
If $90K could produce that much income without significant risk of capital loss, everyone would be doing it.
Folks with over $100K to invest this way would simply quit their jobs and live off the $25K a year that would have produced.
I honestly think you should lower your expectations of income to something more reasonable that can be obtained in the capital markets today without risking severe loss.
To make up the difference, I suggest taking up a part-time job, advancement at current job, switching careers, etc.
If your goal is to have more disposable income, please evaluate your expenses and consider saving more money.
 

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Maybe some more background. Age? How long do you need the income stream? Does it need to increase with inflation?

With GICs, you're looking at $500k to $1 million to generate that income at current rates. And that's before tax!
 

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That is a good point, if you are 65 and little or no other income, you could be eligible for GIS in addition to the typical OAS.

On another note, if you could increase your capital base to $200k, you could probably comfortably pull 4% out of an income portfolio (dividends etc), which would give you $8000 per year (or $167 per week).
 

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Discussion Starter #12
so I increase capital to $200k and over the next 10 years would 7% growth (including dividends and investment growth) be attainable, I think it could be and probably closer to 9% with the right investments, I agree somewhat risky but could it be done?
 

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Let's say someone has around $300,000 of pretty liquid funds. Let's also say the person is aorund 50 years old with a part time job, and needs that income until they can collect Canada Pension. Can that figure of around $300 - $400 a week be achieved? If so, how would it be done?
 

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As MoneyGal mentioned in another thread, you cannot bank on 9% constant return. What are you going to do during negative years (ie. 2008)? If you need income, then it's probably best to focus on the income streams and consider growth a bonus.

As to the other question, $300k @ 4% distribution is $1k/month. You can probably increase your monthly distribution by dipping into your capital, really depends on your goals. For me, i'm the type to spend the distribution, but protect the capital.
 

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Discussion Starter #15
As MoneyGal mentioned in another thread, you cannot bank on 9% constant return. What are you going to do during negative years (ie. 2008)? If you need income, then it's probably best to focus on the income streams and consider growth a bonus.

The 9% return i was referring to was dividend (4-5%) and growth (4%) together, I see this as quite attainable, no?

I realize growth is impossible to forecast but aside from another 2008 a 4% growth is quite minimal. My goal would be to retain the capital as much as possible.
 

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The 9% return i was referring to was dividend (4-5%) and growth (4%) together, I see this as quite attainable, no?

I realize growth is impossible to forecast but aside from another 2008 a 4% growth is quite minimal. My goal would be to retain the capital as much as possible.
You can't just ignore years that are inconvenient because they had -30% returns. A more reasonable expectation for equity returns is in the 6-7% range. You really shouldn't count on more.
 

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Seems to me there should be a professional you can speak to about crunching the numbers for you. Maybe your accountant or someone at the bank that can put the numbers into a spreadsheet? Or maybe even google annuity calculation spreadsheet or similar. I doubt that the specific answers you want could be realistically delivered to you via a discussion forum. What you want I think qualifies as a billable service. Someone please correct me if I'm wrong.
 

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Nah. This is a calculator question, not worth billable time.

If you *require* the income and cannot tolerate fluctuations, then the short answer is there is no financial product which will provide a guaranteed annualized 9% return through whatever combination of growth and dividends. If there was, wouldn't we all be invested in it?
 
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