What's a safe investment for generating income?

Very interesting read. I have a mate who sold his commercial property this year. I don't know where he invested the funds. I won't touch the stock market. Businesses have been clobbered by the various governments. City units will suffer a downturn imho.
Meh.
 
Mintaka said:
Very interesting read. I have a mate who sold his commercial property this year. I don't know where he invested the funds. I won't touch the stock market. Businesses have been clobbered by the various governments. City units will suffer a downturn imho.
Meh.
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What type of commercial did he sell ?

Personally commercial real estate is the best asset to generate income.
Tenant pays all out goings, you own a tangible asset (usually on a half decent parcel of land) and you get some capital growth. You can easily live modestly off the income and not have to eat into your seed capital.

Its my pick, but there is always a but.

Expensive to get into in price as well as lending criteria is harder to meet, higher rates, higher deposit and the rest.

Timmy
 
Very interesting reading this thread again. Four years later, the XAO has been jumping up and down around 7800, intetest rates up and gold and silver heading north.
Commercial real estate suffered from gov't intervention during C-19. Small businesses closing, large office buildings half full, with no sign of improving.
If I had my 30's over again, I would not really know what to do!
Timmy it was a retail/small office building. It had been developed into residential/retail.
 
When it comes to safe investments for generating income, there are a few solid options to consider:

  1. High-Yield Savings Accounts: These accounts typically offer higher interest rates than standard savings accounts. They are a safe place to park your cash while earning some interest.

  2. Certificates of Deposit (CDs): CDs are time deposits that usually offer higher interest rates than savings accounts. They are low-risk, but you'll need to lock your money away for a set period.

  3. Government Bonds: U.S. Treasury bonds are considered one of the safest investments. They provide fixed interest payments and are backed by the government.

  4. Dividend Stocks: Investing in established companies that pay regular dividends can provide a reliable income stream. Look for companies with a history of consistent dividend payments.

  5. Real Estate Investment Trusts (REITs): If you’re interested in real estate but don’t want to manage properties, REITs can be a good alternative. They pay dividends from rental income and can offer solid returns.

  6. Annuities: Fixed annuities can provide guaranteed income over a period, making them a low-risk option for generating income in retirement.
Before making any investment, it's essential to do your research and consider your risk tolerance. Diversifying your portfolio can also help mitigate risk while generating income.
 
Mintaka said:
Very interesting reading this thread again. Four years later, the XAO has been jumping up and down around 7800, intetest rates up and gold and silver heading north.
Commercial real estate suffered from gov't intervention during C-19. Small businesses closing, large office buildings half full, with no sign of improving.
If I had my 30's over again, I would not really know what to do!
Timmy it was a retail/small office building. It had been developed into residential/retail.
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I am still doing the same investment, building factory/warehouses.
In fact settling next month on a block of land.
All my rents have increased substantially in the last few years, so have capital values. I’m happy.
I off set my risk with gold and silver purchases every few months as rents come in and cash flow allows. This is my insurance policy.
Rates and land tax have also increased but I don’t care, tenant pays all outgoings.
Interest rates have also increased a lot, positive cash flow is affected a little but rates need to go a lot higher before I’m negative geared.

Timmy
 
jackson_99 said:
When it comes to safe investments for generating income, there are a few solid options to consider:

  1. High-Yield Savings Accounts: These accounts typically offer higher interest rates than standard savings accounts. They are a safe place to park your cash while earning some interest.

  2. Certificates of Deposit (CDs): CDs are time deposits that usually offer higher interest rates than savings accounts. They are low-risk, but you'll need to lock your money away for a set period.

  3. Government Bonds: U.S. Treasury bonds are considered one of the safest investments. They provide fixed interest payments and are backed by the government.

  4. Dividend Stocks: Investing in established companies that pay regular dividends can provide a reliable income stream. Look for companies with a history of consistent dividend payments.

  5. Real Estate Investment Trusts (REITs): If you’re interested in real estate but don’t want to manage properties, REITs can be a good alternative. They pay dividends from rental income and can offer solid returns.

  6. Annuities: Fixed annuities can provide guaranteed income over a period, making them a low-risk option for generating income in retirement.
Before making any investment, it's essential to do your research and consider your risk tolerance. Diversifying your portfolio can also help mitigate risk while generating income.
Click to expand...

I like your suggestion as to REITs. People could look at Balmain Discrete Mortgage Income Trusts for one. very reliable monthly income.
Finexia Childcare Income Fund is worth looking at too for good monthly return
Trilogy Monthly Income Fund is worth a look too.
 
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