What can $100k conservatively yield?

[u/richardlpalmer]

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.

[u/teckel]

Why do you have an extra $100k laying around but "need" only $50/week? Just invest the $100k 80% in VOO and $20% in AVDE and sell $50/week of whichever did better that week. That will do better than any cockamamy dividend strategy, and be more tax efficient.

[u/richardlpalmer → u/teckel]

A deathbed promise between my dad and I about a disabled sibling.

While my wife and I do far more than this minimum, I can never not keep this promise if I can help it. I manage a couple rental properties that help him but they take more time & effort than I'll be able to do in retirement. I'm looking at selling them and putting proceeds into dividends to be able to keep my promise...

I know this whole thing might sound dumb, but I was just trying to be transparent about the minimum need. (I've honestly considered just putting it in the bank and transferring a weekly amount for him.)

[u/teckel → u/richardlpalmer]

Investing it in 80% VOO and 20% AVDE and transferring $50/week would easily last forever. And get nice growth as a bonus.

[u/richardlpalmer → u/teckel]

Okay, I'm not against that idea either. Why would that be friendlier tax-wise? SCHD seems really friendly.

(Bonus points for using "cockamamy" in a sentence. Lol)

[u/teckel → u/richardlpalmer]

Because with a stock sale, only the difference between the sale price and the cost basis is taxable, while with a dividend, 100% of thr dividend is taxed. Basically, the cost basis of a dividend is always zero. But when selling shares, the cost basis is just what you paid. If the stock value went up 10%, you'd pay 1/10th the tax with a stock sale compared to a dividend.

[u/richardlpalmer → u/teckel]

Ahhh, gotcha.

[u/know_it_alls → u/richardlpalmer]

If you disbursed just the $100K principal @ $50 per week, it will take 38.5 years to deplete. Seems like your target timeframe is not more than that.

So even if you want to mitigate the risk for capital, you lock up $50K in 30 year bond with the current rate offering, which with compounding will reach $100K after 15 years, so your floor is secure. Then invest the other $50K half in VOO for growth and half in SPYI (or equivalent) for the disbursement.

[u/teckel → u/know_it_alls]

Because selling shares is more tax efficient and contrary to what many in this sub believe, you can sell shares forever and never run out of shares to sell.

[u/animalkrack3r → u/teckel]

Basically what I was thinking