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Q: Safest investments earning 5% interest ( No Answer,   5 Comments )
Subject: Safest investments earning 5% interest
Category: Business and Money
Asked by: gary5839-ga
List Price: $50.00
Posted: 20 Mar 2005 17:08 PST
Expires: 19 Sep 2005 08:06 PDT
Question ID: 497753
I am selling my house and will live off the proceeds a few years until
I can begin withdrawing money from my 401k at the age of 59 1/2. What
are the safest ways to invest approx. $125,000.00 and earn 5%
interest? I would need to withdraw about $2,500.00 each month .I would
like specific recomendations.

Thanks in advance.

Clarification of Question by gary5839-ga on 22 Mar 2005 17:13 PST
To clarify my question, I do plan to use up the proceeds from the sale
of my house by age 59 1/2 or soon after. I was wanting to earn 5% APR
to make it stretch a little longer but wanted the money to be as safe
as possible.
There is no answer at this time.

Subject: Re: Safest investments earning 5% interest
From: jack_of_few_trades-ga on 21 Mar 2005 06:29 PST
I think a great product for your needs is an annuity.  You can specify
the term (number of years that the annuity will pay you monthly) of
the annuity and they will simply send you a check every month.  The
longer the term the less the payment will be of course, and they will
be able to tell you exactly what they'll send you.
Here is a site that shows current interest rates for several annuities:
They range up to 4.7%, and these are very safe investments.

If these don't suit your needs the government bonds are probably the
way to go.  If you want to cash in some bonds every month there will
probably be a transaction cost though.

Best of luck in your investing and retirement!
Subject: Re: Safest investments earning 5% interest
From: omnivorous-ga on 21 Mar 2005 11:55 PST
Gary5839 --

Wait until Wednesday, then buy a 10-year (or longer) U.S. Treasury
bond.  According to Merrill Lynch Bond Index (from the Wall Street
Journal) the current 10-year bonds are 4.80% -- and treasuries are
considered "risk free" by investors.

But the Federal Reserve is expected to raise rates tomorrow, which
should push those long-term Treasury bonds over 5%.  The Fed is widely
expected to raise the overnight rates by 0.25% (from 2.5% to 2.75%).


Best regards,

Subject: Re: Safest investments earning 5% interest
From: financeeco-ga on 22 Mar 2005 01:24 PST
Right off the bat, you need to clarify something:

$2500/month = $30K/year
$30K/year on $125K is a 24% APR.

Your question makes it seem like you're looking to live off of
$2500/month in INTEREST ONLY (in other words, you expect your full
amount of principal back at the end). This is not possible.

On the other hand, I may be misreading your question. Clarify if
you're looking to draw down your principal over the period, and we'll
go from there.
Subject: Re: Safest investments earning 5% interest
From: jack_of_few_trades-ga on 22 Mar 2005 11:46 PST
I'm certain that Gary meant the $125,000 is expendable.  Once his 401k
is available for withdrawal he won't need that $125k anymore (although
extra money is always nice).
Subject: Re: Safest investments earning 5% interest
From: kriru-ga on 19 Sep 2005 01:53 PDT
Hey I am a Financial Analyst based in India and hope you must have
heard about the hype surrounding emerging markets in your country. Let
me first give you a few facts about India. India is the second largest
growing economy in the world. It has large talent pool of English
speaking and IT - skilled people. Due to the low labor costs as
compared to other developed countries India has become now the
preferred destination for global outsourcing. This boom has put more
purchasing power in the Indian  middle class with the demands of
consumer goods, real estate(especially single occupancy houses), and
luxury goods has blossomed. India is also proving metal in the
manufacturing sector with some of the Indian Brands like Tata Tea,
Bharat Forge, M & M ,Hero Honda ... setting global benchmarks. The
corporate sector is well supported by the government under the
prudence of PM Mr. Manmohan Singh a prudent economist. The man has to
his credit bring about financial reform in India paving way for
today?s growth way back in 1990 as his stint as Finance Minister. The
government is encouraging corporate India to think big and news of
$1-100 million dollars acquisitions made by Indian companies for
overseas foray is now banal. ICICI bank a leading private sector bank
has opened fully owned subsidiary in Canada. The entire back office
work is outsourced to low cost support in India. The bank has
transferred the savings thus made to the consumers by offering 35-75
basis points more than the local banks .The result the bank has
already enrolled 22000 customers and is opening 1500 new accounts per
week. Corporate India is full of such stories in the recent budget the
FM has stressed the need for rural India modernization. This has set a
new wave of infrastructure, telecommunication, power sector and
consumer goods boom.
In sum, the Indian economy is well in place and is poised to grow @
6-7% in the next decade. This is very strong figure as compared to
developed economies which grow at 2-3%. This growth is being reflected
in the Indian Stock Markets. The sensex of BSE (Bombay Stock Exchange)
the oldest Stock Exchange in India equivalent to NYSE in US has zoomed
100% from 4000 levels last may to 8000 levels as of today in
September. Even after such exponential rise the market still quote at
a P/E of 14 which is not expensive. The corporate India is expected to
grow @ 20% thus these leaves rooms for further appreciation in years
to come. Now my expertise as a financial consultant is tracking those
stocks which are unnoticed by the markets. There are close 5000
scripts trading on the sensex and detailed study on each one of them
is not possible. Over the last one year my recommendations have turned
out to be multibagers and investors making as much as 1500 -100% over
their initial investments. If you don?t believe this just check out
the link below giving the returns of some picks on the Indian bourses
over the last one year.
Hence I am proposing you to invest in the Indian Stock Market. Of
course you could invest in other emerging markets also like Brazil,
Korea etc. but investing in all the countries directly wouldn?t be
feasible and while taking the mutual fund route the returns will be
limited and would not be your goal. You can forward the money to our
company and will act as your proxy in India to invest in the equities
here. We charge a flat rate of 15% as operational - managerial costs.
I do realize to trust your life-time money with a stranger that too
from your soil but I can guarantee you return of 100% in a year?s time
frame. Also you can start by investing just 10% of your intial
targeted investment and as you gain confidence and trust in us you
could gradually increase the sum. If the above proposal is fine with
you then u can contact me on
Hoping to hear from you soon.

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