The idea of having monthly income from investments is the holy grail for many. I read a recent post here on this. When I tried to do the same thing, it was largely symbolic – could it be done?
Many REITs does quarterly distributions, and a large number of them distributes on the month of 2/5/8/11 i.e. payment dates fall on February, May, August or November.
And then, there are REITs that distributes on 3/6/9/12 i.e. payment dates fall on March, June, September or December. If you’ve got them in your portfolio, then you’re set for 8 of 12 months.
Innovative Payout Schedule
The harder problem to solve lies with 1/4/7/10 which are the quieter months. Rather than jump through hoops to get payouts in those months (which are subjected to changes anyway), an easy way out is to get two tranches of SSBs – Jan (plus Jul) and Apr (plus Oct).
It’s not that difficult to get that initial monthly $50 or $100 payouts. For me, it isn’t the tangible amount (like I say, largely symbolic) but rather, the positive reinforcements of such an achievement. Also, it makes it much easier to illustrate to my wife – “There! How easy it is to create that monthly stream of income!”
This idea is rather common overseas, and there are plenty of mutual funds, unit trusts and ETFs that distributes on a monthly basis to sustain retirees’ lives.
Bottom-line is, I invest because of belief in the companies. Not because of their payout dates! If not, some “innovative” REIT is going to switch their payout schedule to 1/4/7/10 (and employ some ghost bloggers — like me — to write about having monthly income from investments HAHA) 😀
On something that is totally unrelated to the earlier topic, I just watched a movie on Netflix called Money Monster. Good watch!
From Wiki – A TV personality (George Clooney) who advises his audience on financial investment and speculation on the New York stock markets and who is forcefully interrogated by a grief-stricken bankrupt viewer who lost his money after a previous tip; the film also stars Julia Roberts.
I wonder how many of us think about the impact of what we do?
Bloggers? We can write whatever we want – stories, reviews, reports, analysis, tips .. or bullshit. Always take everything with a MEGA pinch of salt and assume that nobody knows what they’re talking about. End of the day, this blog is for myself. I write about what I do; go ahead and make whatever you want of it.
Some people believe that only those who have “made it” (i.e. high net-worth, getting lots of passive income, multiple rental properties, etc) are worth listening to. To me, it doesn’t really matter how many years a person has been investing, net worth, profession, or simply how well he/she writes. Common sense and judgement are just as important.
What I am fully aware of, is that knowingly doing bad things is bad karma.
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