How much would I need to put in the bank to yield $50,000. in interest per month?
March 15, 2009 by How Savings Bonds Work
Filed under High Yield Investing
Can you answer Annie Oakley’s question about Bonds?:
Is there a better place to invest 125 million to yield a higher interest?
How Much Is My Savings Bond Worth
Is there a better place to invest 125 million to yield a higher interest?
How Much Is My Savings Bond Worth
Bonds Feedback: If you needed 50,000/month. By purchasing 30 year U.S. treasury bonds at the current rate of 4.9%, you would need about $12,245,000 (12 and a quarter million).
If you had 125 million dollars, I would suggest finding a financial advisor who could help you invest the money in a divirsified portfolio that could provide you with current income, and growth.
Bonds Feedback: it depends on the interest rate. CD’s usually get better rates than a bank account. Similarly, investing gives better rates than CDs. With 125 million dollars, your best bet is to diversify.
Bonds Feedback: Savings accounts are incredibly low interest. The highest-interest ways I know of to invest that are also pretty much risk-free are in certain Federal savings bonds or in CDs.
But if I had that much money, I would probably put it in hedge funds.
Bonds Feedback: I caint even picture havin $10,000 a month let alone $50,000. give some of it to the Lord.
Bonds Feedback: 1) $2,400,000.00
2) Yes.
Bonds Feedback: I would personally recommend investing your money in Forex. Forex is where you trade one nation’s currency for another nation’s currency. Forex can be extremely risky if played with high leverage. However, since you dislike taking risks, I highly recommend you to trade on a 2:1 leverage.
The reason I’m recommending Forex is because you can take huge advantage of the interest rate difference Euro and Turkish Lira. Turkish Lira pays you an interest of approximately 16 percent a year. It costs about 4 percent to borrow Euro. In the Forex market, you can borrow Euro and invest in the Turkish Lira. This gives you a difference of 12 percent interest rate a year. Not bad eh? Now do it with 2:1 leverage and you will have 24 percent interest rate a year on your investment. It is 24 percent interest rate a year if you do not consider taking advantage of the appreciation in value of the currency.
This year, Turkish Lira appreciated in value against the Euro by approximately 15 percent. With a leverage of 2:1, you would have received 30 percent return on the investment.
24 percent + 30 percent would have given you 54 percent return a year. Not bad eh?
You must consider the risks though. If Turkey decides to lower their interest rates or if Euro decides to raise it’s interest rates, you’ll receive less profit from the interest rate difference. Another concern is if Euro were to gain strength against Turkish Lira, you would also suffer a potential loss.
However, if you like this strategy, the next step for you to do is learn how to find entry points in the Forex market. A good entry point can easily turn a bad investment into a profitable investment and a profitable investment to a 54 percent return. I highly recommend you to do more research in this area. However, if you are interested. Your next step should be to email me at.
We can have a real convo.