If, for any reason, you are no longer able to work, making ends meet might become a problem. For these instances, such as retirement, it is important that you find investments with monthly income. Such choices ensure that there is some kind of income coming in each month. This money is generally paid to you each month or quarter, allowing you to replace the need for a paycheck each month, and it can cover your monthly living expenses. If you do, then you will be able to continue living as you always have, knowing that there is some level of cash flow on a monthly basis. There are a few different choices out there that provide this monthly income. Here are five of the most popular investments with monthly income.
- Immediate Annuities: One of the best and most popular investments with monthly income is known as an immediate annuity. Insurance companies all over offer these kinds of annuities, but you should be aware that the guarantee of this income is only as strong as the company that you get it from. This type of financial choice involves you making a lump sum payment to the company, who then pays you a monthly amount for the rest of your life, regardless of if they pay out more than you paid in. This is a great way to make sure that you have income for the rest of your life.
- Retirement Income: Retirement income is another of the investments with monthly income. This type is a great way to ensure that you have monthly income while retaining control of the actual money that was invested. Originally, you will have to invest in a diversified portfolio including stocks and bonds, and then interest is paid to you on a monthly basis. It goes without saying, however, that if you actually do withdraw part of the principal, your monthly payments will fluctuate as well.
- Closed End Investing: Closed end funds are another great way of making monthly or quarterly income. Unlike annuities, however, these funds are not guaranteed, but there are quite a few attractive packages in this category. While some retirement options rely on stocks alone or stocks and bonds, closed end investments rely on a wide array of products including stocks, bonds, covered called, interest, and dividends. Each individual fund has its own objective, so it is important to do some research before you buy.
- Variable Annuities: Unlike immediate annuities, variable annuities, money that you invest is placed into a portfolio of various different choices that you can choose from. The insurance company that offers the annuity then layers guarantees over the policy for certain fees that you will be responsible for paying. While it might sound like this is not as good of an option as the immediate annuities, there are various companies that offer very nice lifetime income riders.
- Real Estate: Investing in real estate can provide a fairly stable flow of money each month. The biggest downside to owning real estate as an investment, however, is that you are often liable for upkeep and unanticipated expenses. You have a choice in real estate investing though, and instead of investing in the actual property, you can choose to invest in a company that manages property instead. While the income is less, you will not have to worry about keeping up on whatever homes that you might own.
Having a source of monthly income after you can no longer work is an important thing to plan for. There are plenty of investments out there that provide monthly income in a variety of different ways. Make sure to see everything that is available and choose the option that best fits your needs and requirements. Remember, the highest returns may not be feasible for you because of the work that is involved, but there is always some kind of option that will fit.