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Poll: If I gave you R100 000 would you be able to generate an income of more than R640 per month?
Yes
75.00%
No
25.00%
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Investing for MONTHLY income! Why is there no answer to this question anywhere?
#1
I go from one financial website to the next to find an instrument, ideally an ETF, that will generate a monthly income.
I don't need money in 30 years time. I need money now. I need to pay university fees and want to buy a house and and and.... (had to pay R8000 for a vehicle service yesterday!! - next year it will most probably be R10 000.)

I'm willing to sacrifice on "living" for say up to 4 months, but then I want to start receiving a monthly income from that financial sacrifice.

I know the options are dividends, especially in property shares as they must pay out a component of what they make every quarter.

I know about bonds and of course fixed deposits at banks. What else is there?

My question: Why is there not an ETF that include these items all in one place? Why can't I get income from an ETF every 3/4 months? Why must I hold for 30 years for retirement? What do the financial advisors think I should do in the meantime while I put away all my money for my old day? What should I then live on in the meantime while the cost-of-living is sky rocketing?

PS: I spoke to people and was informed that right now, on an investment of 1 million rand, I can expect to get a monthly income of +- R6400. So on an investment of R100 000 I can expect to get R640 per month, right, R10 000 would give R64 and R1000=R6.40. So let me clarify that a bit more. I give my R1000 to a financial specialists for a period of 30 days and all he/she can give me is R6.40? Please, if these numbers are wrong, enlighten us because this is terrible.

#2
Not sure if serious...

#3
You live on your salary and save the rest for retirement.
Register on Platinum Wealth (My referral link)

#4
(10-14-2017, 09:59 PM)Bandit Wrote: Not sure if serious...

I am very serious. Show me an ETF that is geared to paying monthly income. When you retire, where do your monthly income come from? Your financial advisor invested your funds that you put away for 20 or 30 years and from that, income is derived for you to live off. So if they can do it then, why can't they do it now? As I see it, the only difference is the size of the amount that you have invested.

So if they can pay you R6400 per month per million invested, why can't they pay it right now on whatever amount you have invested, or am I understanding your statement wrong and you talking about the R6400 per million that the people that I talked to said they were getting because that is peanuts.

#5
(10-15-2017, 11:18 AM)Spreadsheet Ranger Wrote: You live on your salary and save the rest for retirement.

Well lets look at that in real terms per month.

House (R1000 000) = R10 000
Insurance on house = R2500
Municipality account = R2000
Car installment = R2500
Car insurance = R700
Petrol = R2000

Wow, no food yet and I am at R20 000 bring home pay required. So lets see. Work deducts tax, uif and medical. So I need to earn round R30 000 a month or more. So lets say you cover the "live on your salary" part, where must the "save the rest for retirement" part come from? 

I am not joking. This is real life. So what did I do? I started a second income working weekends and that part I want to invest in a place that will subsidies my income every month and that is why I asked the question that I started this forum topic with.

Am I being unrealistic or are people just not asking the right questions? What I don't understand is that people are willing to save for their old day's, but right now they barely survive. In a nutshell, people are willing to suffer for 30 years so they can have money for the last 20 years of their life and on top of that, the medical aid that they pay R3000 per month for will cost them R10 000 per month in 20 years time.

#6
That is the reality of South Africa the vast majority of South Africans cannot afford to save for their retirement.
Register on Platinum Wealth (My referral link)

#7
If you want a monthly payout so badly just get an annuity. The lump sum required will probably be quite high but you'll get your monthly. It's quite difficult to get monthly payouts from an investment- and if you do they'll be a small fraction of the original investment.

#8
(10-15-2017, 05:36 PM)SlimArchi Wrote: If you want a monthly payout so badly just get an annuity. The lump sum required will probably be quite high but you'll get your monthly. It's quite difficult to get monthly payouts from an investment- and if you do they'll be a small fraction of the original investment.

But why? Why a small fraction of the original investment? Who determined that we should only get a small fraction?
Because we are sheep that are being told that and we never query anything. In my example above I mentioned that you get R640/month on a R100 000 investment. So I ask, who can beat that? Lets put that in perspective. Let's say I bought a portable car wash machine and it cost me R100 000. Do you think I would be able to wash 7 cars at R100 a car in a month of 30 days? I am sure I would, but that then makes the investment that pays R640 /R100 000 absolutely useless right, cause I can make R700 a month.

On top of that I would be paying a fund manager to give me a dismal return. Wow, what a bunch of poor suckers the public is.

#9
When you purchase shares in a company, you're essentially buying part ownership. You buy into the growth and demise of the company. So if the company does well, you do well. No company listed is likely to experience massive growth over night. So you can't expect massive gains on your investment.

Investing in shares is completely different than your car wash machine example. If you want the type of gains you get from owning something, then buy all means, go and buy yourself a company.

I don't think you understand that companies need good cash flow and capital to run and survive. They cannot just pay out every person who comes along and demands monthly payments.

Your interest rates are governed by a lot of factors- too many to go into. One of them is South Africa's economic performance. And as we all know, it's not spectacular at the moment. Hence, not a lot of high growth.

Also, whoever you're giving your money to to invest, is making more than your "6.5%" and is keeping the excess. If you don't like that, then invest in shares on your own behalf or again, start your own business.

You're also missing the point of an investment. It's to invest. I.e. Put your money somewhere it will grow and earn you returns. So even though you may earn a 6% return on shares, this continues for a long period of time. Once you decide to cash in on your shares, you have your compounded amount which, if done correctly, should be significantly higher than your original investment.

#10
Seriously...

The R640 examples, that's the interest/inflation rate and what you'll get with a 32 day account. You can beat it with a fixed deposit.

Comparing income from interest with income from work (car wash machine) is silly. If sitting back and doing nothing paid more than doing actual work we'd all be rich and lazy.

The people and/or companies you invest in use your money to make more money themselves (acquire more assets, expand etc) and as an incentive pays out the bare minimum they need to to keep you interested and pick them over somebody else.


Dividend focussed ETFs:
DIVTRX, STXDIV

REIT focussed ETFs:
PTXTEN, STPROP, PTXSPY, STXPRO

They all pay out quarterly but not an optimum solution. There are also a ton of unit trusts you can look at.


Again, I'm not sure if you are serious or just trolling.

#11
You can most definitely make more than R640 p/m with R100 000, but in most cases it would involve spending actual time working to earn more, as time is money, and that initial R100 000 would be spent buying whatever is needed to make said monthly return, whatever figure that might be.

It's just "easier" putting it in the bank and not having to work at creating more wealth.

#12
Guys, thanks for the feedback and yes I am serious. I still have not received an answer to my original question.

I take note of:

FIXED DEPOSIT

Dividend focussed ETFs:
DIVTRX, STXDIV

REIT focussed ETFs:
PTXTEN, STPROP, PTXSPY, STXPRO

BONDS

Still I have no answer to my original question - Why is there no instrument dedicated to fixed income that contain, dividend shares (variable), fixed deposit (fixed for 30 days minimum), Reit (variable) and bonds (fixed for 3/5/10/20 years) in one single ETF? Surely this is not rocket science but it needs a fund manager especially to manage the variable components on a day to day basis. How hard can this be to run??

Maybe I should start such a fund and market it to the public.

1. Dividend shares - will need close management local and international + monitor costs of transferring funds off-shore and and.....
2. Fixed deposit - Every month find best 30 day deposit and move funds + monitor costs of transferring funds
3. REIT - will need close management local and international + monitor costs of transferring funds off-shore and and.....
4. Bonds - Well this one will be fixed for 3/5/10/20 years so not a biggy but need to give clients best value for money.
5. Do all this but keep fees at a minimum.

#13
It helps when you think of ETFs as building blocks for a portfolio so you can use them in the exact amounts and combination that is optimum for you.

Are you sure there are no unit trusts meeting this criteria?






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