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2016-01-27 13:36:54 Post No. 1063296
Post No. 1063296
I want to build up a private income from stocks and bonds.
Specifically, I'm buying for dividends and coupons, not for appreciation of stock or bond value.
As far as I can tell, 5% is an average annual return.
I would reinvest three fifths of the return to counter inflation, then keep two fifths as income.
I am obscenely patient, which is just as well, because I have to start small.
I want to establish an inflation proof income with the value of $1 per day. Then I'll do it again, and again, and again. But baby steps.
Based on my figures, $365 per year represents two fifths of a 5% return, so I would need $18,250 (100%) in capital to get it.
So, suppose I had 18K. Where and how in the USA or the EU should I invest it to get reliable 5% return?