Is it possible to build your own annuity?
In short Yes it is possible to create a portfolio that will in part mimic an annuity.
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| Cash From Your Own Annuity |
How I would build an annuity.
How do you go about building an annuity like portfolio?
First know the aim of the annuity. Is it to pay a regular bill, a mortgage, car payment, or school fees?
When you know what the annuity is for then you can look for the stocks, mutual funds and Exchange Traded Funds that will provide you with income.
This annuity is for regular amounts of income while you live.
You can include a Life assurance policy for the cost of funeral expenses, your beneficiaries will receive the portfolio of investments after your death.
So if you are looking for a fixed amount of income, say you have a $300 per month car payment. It is easy to build a portfolio of dividend and cash paying stocks and bonds that you can use to pay either part or all of your car payment, mortgage, or school fees.
I use this method to pay for my current college fees. A class costs me $160 per semester.
I invested $50,000 over the last ten years. It pays me just over $2,000 per year in dividends.
It comes out at about $100 in January and February, $400 in March, June and the other quarter months.
I take out $600 per year for fees and textbooks. This little annuity keeps on growing too as the market grows and as dividends increase.
Last year it grew by 18.7%, 4% Dividend growth and just under 15% stock price growth.
To read
I am also building a $10,000 Portfolio for income beginning in October 2019. To read how that is proceeding go to my blog post at Financial Independence for the Blind.
I am also building a $10,000 Portfolio for income beginning in October 2019. To read how that is proceeding go to my blog post at Financial Independence for the Blind.
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