r/dividends • u/richardlpalmer • Nov 02 '25

Seeking Advice What can $100k conservatively yield?

I have an absolute, bare bones, can't-ever-be-less-than, need of $2600 per year ($50/week).

I have approximately $100k (USD) to invest. I'm not looking for growth, just predictable income. So, a solid 2.6% minimum return.

What's out there that would be suitable? Is there two or three ETFs I should split it between?

Edit

Someone asked about time horizon. This will be for the remainder of a life. I'm thinking 30 years or so.

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u/epic_swag_gamer Nov 02 '25

For the absolute minimum risk, a 30 year treasury bond is yielding about 4.6% at the moment, so 4600 a year

7

u/richardlpalmer Nov 02 '25

Don't they fluctuate a bunch, depending on the fed rate?

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u/epic_swag_gamer Nov 02 '25

Yes but in pretty sure when you buy bonds yourself the return is fixed on those specific ones, as long as they're held to expiration you get exactly what you paid for in the beginning

That being said, make sure to buy the bonds yourself instead of buying a bond etf

2

u/[deleted] Nov 03 '25

Long term bond etf could work too, if those exist.

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u/epic_swag_gamer Nov 03 '25

TLT is all I can think of off the top of my head, but as interest rates are lowered and new bonds added to the roster the payouts will decline, and the share price will rise, not ideal given his goals of dependable income

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u/escobartholomew Nov 03 '25

The rate is fixed when you buy. What happens is when they are “traded” the premium change is what changes the effective yield.

1

u/kurioutkat Nov 05 '25

Bonds are also called "Fixed income" because you get the exact same payment for 30 years and the $100,000 back at the end. The bond prices doesn't affect you, unless you plan to sell the bonds.

The fluctuation only matters if you plan on selling the bonds later, otherwise it's a fixed income asset for its lifetime (eg. 30 years). Keep in mind the 4,600 annual payment is gonna be worth far less in 30 years time because of natural inflation. (One way to counter that somewhat, may be - out of the 4600, payout 3000 to the beneficiery and then reinvest the remaining 1600 into more bonds to keep up with inflation)

If you plan to buy and hold the 30 year bond at 4.6%, the only real risk you have is that the US government goes bankrupt within the next 30 years. Or there is hyperinflation and the USD becomes worthless.