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Posted: 2/23/2015 10:38:11 PM EDT
[#1]
$20,000/0.03=$666, 667.00
I'd go with $700,000 just to be safe because you might be able to get 4% and adjust for inflation. |
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Posted: 2/24/2015 1:17:02 AM EDT
[#2]
Make 20k a year net of taxes guaranteed and FDIC insured? Probably 2 million at today's interest rates.
I would take 500k and put it in the stock market and feel safe drawing 4% and get your 20k that way but there is risk of loss and it not working. That is kind of a weird way to approach life insurance. It is not generally wise to try and pay for certain things like that with life insurance. Best bet is to design life insurance to replace your income. |
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Posted: 2/24/2015 3:20:49 AM EDT
[#3]
I just thought of it. I never really thought if it as weird or not. I figured it would be one less thing for my wife to worry about if something happened to me.
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Posted: 2/26/2015 1:25:53 AM EDT
[#4]
Double Tap
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Posted: 2/26/2015 1:28:05 AM EDT
[#5]
You would need $250K at 8% interest. Invest in index funds like SPY that tracks the S&P500. It's safe and already diversified. There is some risk, but it had returns >12% the last few years.
Letting that much money sit in a bank at 3% hardly covers inflation and is a waste. |
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Posted: 2/26/2015 1:37:16 AM EDT
[#6]
You could go pretty low risk with 500K and easily clear 20k.
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Posted: 2/26/2015 12:13:09 PM EDT
[#7]
Quote HistoryQuoted:
You would need $250K at 8% interest. Invest in index funds like SPY that tracks the S&P500. It's safe and already diversified. There is some risk, but it had returns >12% the last few years. Letting that much money sit in a bank at 3% hardly covers inflation and is a waste. Those higher rates of return are not the average though. And I don't expect them to be the case for the entirety of the next 14 years as his son grows up. I think 5% is a much more realistic guess for future average returns. |
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Posted: 2/26/2015 12:14:47 PM EDT
[#8]
A lot.
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Posted: 2/27/2015 5:36:24 PM EDT
[#9]
Many of those replies confuse the terms "Interest" with "Yield"
To earn "Interest" you need to LOAN principal, to a party willing and able to PAY Interest. There is commensurate risk. That is why REAL Interest rates are zero. |
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Posted: 2/27/2015 8:48:44 PM EDT
[#10]
It is two different ball games when you are taking income on assets as opposed to letting assets sit to appreciate. Run some hypos just look and see what happens.
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Posted: 3/3/2015 11:37:54 AM EDT
[#11]
Life insurance isn't really that expensive, and most people are underinsured.
I carry $2MM of coverage, and it costs less than $300 per month. And I was rated due to high risk activities and my age when I got the policy. |
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Posted: 3/4/2015 12:54:12 AM EDT
[#12]
Quote HistoryQuoted: $20,000/0.03=$666, 667.00 I'd go with $700,000 just to be safe because you might be able to get 4% and adjust for inflation. |
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Posted: 3/5/2015 9:54:12 AM EDT
[#13]
Quote HistoryQuoted:
Where are you getting 3%? Quote HistoryQuoted:
Quoted:
$20,000/0.03=$666, 667.00 I'd go with $700,000 just to be safe because you might be able to get 4% and adjust for inflation. Here's a hint, not your savings account |
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Posted: 3/5/2015 11:14:02 PM EDT
[#14]
Quote HistoryQuoted:
Life insurance isn't really that expensive, and most people are underinsured. I carry $2MM of coverage, and it costs less than $300 per month. And I was rated due to high risk activities and my age when I got the policy. That's worth repeating. I had a coworker die suddenly from a heart attack out of no where recently. One day he is at work, the next day he's dead. Not over weight, not old, visibly fine health. He had a high paying job and left a wife and kids just like that. There is no way ANYONE saw it coming. I don't know his insurance situation but I hope he had some. |
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Posted: 3/10/2015 11:04:16 PM EDT
[#15]
Quote HistoryQuoted:
Where are you getting 3%? Quote HistoryQuoted:
Quoted:
$20,000/0.03=$666, 667.00 I'd go with $700,000 just to be safe because you might be able to get 4% and adjust for inflation. I was giving the OP a safe number to start with. I do believe that better yields can be had but like I said, I was playing it safe. |
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