Q: Good evening (or morning, as the case may be!)
I have been asked by friends (a couple, she is 72, he is 81) to help allocate $500K from sale of a house (going to rent an apt. since he is going blind) for a dividend income stream to supplement their pension income. Their hope is to have 4.5% to 5% dividend return, with no major concerns about capital appreciation.
1) I can recommend certain equities (such as PPL, ENB, CM or BNS, SIA, LIF, CPX, EIF for example), but wonder if there might be 5 or 6 others they might add to the list.
2) Would there be any ETF's you could suggest that pay a dividend in that range with a reasonable fee?
3) As another consideration, I have taken a look at annuities, and wonder if you might know where they could purchase same (most likely joint) safely and with a good return. They do not have any relatives so inheritance is not an issue.
4) Last of all would be whether you might suggest a mix of these three (ETF, Annuity, Equity), and if so in what percentage.
Of note, they are not interested in investing globally as they have concerns that the US dollar will be falling and they worry about other countries. The "sleep factor" is important here. Their diversification will be in Canada alone.
Thanks! Please deduct as many credits as you feel warranted.!
Paul K.
I have been asked by friends (a couple, she is 72, he is 81) to help allocate $500K from sale of a house (going to rent an apt. since he is going blind) for a dividend income stream to supplement their pension income. Their hope is to have 4.5% to 5% dividend return, with no major concerns about capital appreciation.
1) I can recommend certain equities (such as PPL, ENB, CM or BNS, SIA, LIF, CPX, EIF for example), but wonder if there might be 5 or 6 others they might add to the list.
2) Would there be any ETF's you could suggest that pay a dividend in that range with a reasonable fee?
3) As another consideration, I have taken a look at annuities, and wonder if you might know where they could purchase same (most likely joint) safely and with a good return. They do not have any relatives so inheritance is not an issue.
4) Last of all would be whether you might suggest a mix of these three (ETF, Annuity, Equity), and if so in what percentage.
Of note, they are not interested in investing globally as they have concerns that the US dollar will be falling and they worry about other countries. The "sleep factor" is important here. Their diversification will be in Canada alone.
Thanks! Please deduct as many credits as you feel warranted.!
Paul K.
