generating 1000 $ per month on 150 k investment

Quote from volente_00:

Rental property
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Probably best advice yet. Don't get a single family home... Get a small 4-10 unit complex, find a competent management company (unless you're extremely handy), and just sit back.

In my part of town, CAP (roi basically) rates were 6% three years ago, but now 9.5% CAP very common.
 
Quote from oktiri:

Folks,
I need you help on this one.

I need to invest some money for the old man. all is needed if for it to generate a 1000 monthly taxable income from a 150k lump sum. i'm aware how to easily generate such returns, The problem is how to minimize volatility.
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You can't. You either accept substantial volatility, or you accept making less than 8% per annum.
 
Quote from Moderate:

pgp
pgh
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PGH looks great,but
what about this?

The tax status of Canadian trusts is to change in 2011, according to a proposal made by Jim Flaherty, the Canadian Finance Minister on October 31, 2006. Commencing in 2011, trusts would be taxed like all other corporations, at the full 31.5% rate; this would remove the advantage for which they were set up in the first place.
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http://en.wikipedia.org/wiki/Royalty_trust
 
After November a clearer picture will develop as to where to place your elders capital. A good mix of asset including physical ones, to weather any economic events is a must. Portfolio allocation should include some growth aspect with a medium beta to capture any market upswing. A full spectrum approach with some risk due to age of your elder and his interests should be taken into account.

Akuma
 
Quote from atticus:

Sell otm puts on low-betas and use zero leverage. BLK has a buy-write fund, but you should do this yourself in shares. Pick a diverse group; many sectors, best in class. 100 shares notional exposure per ticker (1 put), no more than 4 tickers per sector. Go one strike otm and do not adjust. Buy some upside calls in VIX or bull vertical as a hedge on vol, or buy an atm index put for gamma.
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So why low beta? Wouldn't that mean low IV and low premium? Do you not get paid more for higher beta everything evens out in the long run?
 
Quote from Eliot Hosewater:

So why low beta? Wouldn't that mean low IV and low premium? Do you not get paid more for higher beta everything evens out in the long run?
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I can't speak for Atticus of course, but the strategy makes sense since he isn't trying to trade out of option positions to avoid assignment. There would be lower risk of the position moving deep itm and having to work out of a big hole when assigned.

Perhaps there is more of a comfort level there as well since it is a family member's $$.

BTW Atticus, do you avoid higher dividend stocks, or just ignore that aspect when making your stock selections?
 
Quote from heech:

Probably best advice yet. Don't get a single family home... Get a small 4-10 unit complex, find a competent management company (unless you're extremely handy), and just sit back.

In my part of town, CAP (roi basically) rates were 6% three years ago, but now 9.5% CAP very common.
More...

+1

This is the closest idea yet. In this market, you bargain hard for bankruptcy or other places - to overcome that properties may still drop in price some. Mortgage rates are very low, which really helps the bottom line. Buy in fairly decent areas (not Detroit!!!), where the monthly rental income compared to the selling price is higher (NOT in NYC metro area!).

Areas of the country with lower unemployment rates such as the Dakotas, or in college towns are promising. But you need to bargain hard on the purchase price and the terms 0 that will impact you for decades.

And don't get too old a place - the annual plumbing, out of code wiring and other maintenance costs can eat you alive. And a new place will age quickly under an onslaught of tenants who don't care about your property. Think something like 1965 construction (especially if it has been upgraded since) - not 1924 and not 2008.
 
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