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23 Best Investment Plans for Monthly Income & Answers to FAQs

November 5, 2022

Yes, not all investment plans are great for monthly income!

Thankfully reading this article will provide you with the very best investment plans for monthly income that can be implemented by just about anyone, including YOU!

Importance

It has been said that music soothes the savage beast. Most of us enjoy music and organize our music according to different genres and certain playlists are played during various activities.

For example, we may have a compilation of soft jazz music when we want to sit back and relax, or workout music consisting of invigorating and blood-pumping music, or a romantic playlist.

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If we only had one song on our playlist, the entertainment value or exercise, or romantic value would soon diminish.

Playing the same old song over and over is like in the old days with a record player. The needle would get stuck in that particular groove and just play over and over and over again.

As compared to our music, our investments should also be diverse and cover a broad spectrum of investment vehicles so that our future investment music is stimulating, entertaining, and not broken.

Personal Story

Showing my age, I remember having a record player that played 45 RPMs. I learned a trick to have my favorite record and recording play over and over again.

All I simply did was lift the arm that held the records over the turntable and moved it to the right.

I found that somehow the record playing mechanism would play the record again because it didn’t sense other records being dropped down on the turntable to play.

23 Best Investment Plans for Monthly Income

Putting together your Investment Playlist…

1. Savings

When talking about your investment playlist, you want to put as many “songs” into the playlist as much as possible.

This diversification is necessary because you don’t want to depend upon one investment vehicle to meet all of your retirement planning needs.

It’s the adage of not putting all your eggs into one basket.

The first song that should go into your playlist is the savings song.

This is just a savings account that you put money into that will provide a greater return on your money than the traditional local bank or other banking institution will.

This fund can be accessed in the event of an emergency, car repair, or going on a vacation. The money is easily accessible and can be utilized as necessary.

Talking about savings, below are some helpful guide to saving money:

2. CD’s

The CD song should also be added to your playlist. CD stands for certificate of deposit.

It earns a little bit more interest than your typical savings account.

This is because your money is invested and restricted for a certain period of time. The length of a CD investment can range anywhere from three months to six months to a year to five years.

If the individual invades their CD, there is a penalty incurred.

The longer, or until maturity, that you keep your money in the CD generally equates to a bigger return on your investment.

Once the CD has reached maturity you can either roll it over into another CD, in other investment vehicles, or simply pocket the money.

Also See: Best Investment Apps for Android and iPhone.

3. Money Market Funds

Money market funds, as part of your investment playlist, are not money market accounts.

They are a compilation of high-end debt that banks, corporations, or the government has incurred.

These entities, rather than taking out a loan, reach out to potential investors and offer them the investment opportunity of loaning these companies or the government money, and then like alone, the businesses or various governments will pay back the loan to the individual with interest.

The value of investing in money market funds is that the length of the loan is over a short period.

Therefore, when that small-time has elapsed, you have access to your funds as needed.

These investments are also very low risk, but the downside is that not much of a return on your investment can be anticipated.

This is a good opportunity because it is less risky and generally gives the individual and a higher interest rate return on their investment than they would normally get through a savings or CD account.

Also See: Comprehensive Guide to Digital Investing.

4. Government Bonds

This song is similar to money market funds only these are bonds that are issued by a government. The government can be at the federal level or municipal level.

The process is similar in that the investor loans the particular government an amount of money and interest is paid on that loaned money over a designated time.

That time can range anywhere from 1 to 30 years.

Generally, a government doesn’t default on its loan. Therefore, this is a fairly non-risky investment and will provide a constant stream of income for the investor.

The downside of loaning the government money is that the interest rate is fairly low and therefore the individual investor will not realize much of a return on their money.

5. Corporate Bonds

Corporate bonds are similar in operation to government bonds. The major difference, of course, is that these bonds are issued by a corporation.

Consequently, corporate bonds are a bit riskier because there is always the potential of the corporation defaulting on their loan and their investment commitment to the individual who has purchased the bonds.

The similarity between corporate bonds and government bonds goes down different tracks when it comes to the interest that may be returned on a corporate bond.

Typically, a corporate bond because of the risk and the potential for default is borrowed money with the promise of a higher interest rate to the potential investor.

6. Mutual Funds

This fund as part of your investment playlist is defined as cash that is pooled together from a variety of investors. There is more power in pooled money.

Subsequently, this pool of money purchases a variety of diversification of many stocks, bonds, and other assets.

Mutual funds, because of their structure, are a significant positive move by the investor.

This is because it allows them to place their investment money across a broader spectrum of investments and subsequent returns on investment.

Additionally, because the monies are spread out over several investments, the investment dollars are not pooled into one particular company or another investment vehicle.

Therefore, because it is spread out or diversified if the basket is dropped then the investor will not lose all of their eggs placed in one basket.

Also See: High Value Investing Books to Read.

7. Index Funds

An index fund is a form of a mutual fund that is invested in stocks in one particular market index.

The market index could be the Dow Jones Industrial Average or the S&P 500, etc.

The goal of an index fund is to realize investment monies that are on par with the index’s performance.

The opposite of an index fund would be a mutual fund that engages the professional expertise of a professional to manage the holdings of the individual.

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Index funds are investments that are best suited when in the market for the duration.

Consequently, index funds are especially powerful for young investors who are looking at a significant time frame invested in the market.

The other benefits of having index funds are that they are less risky and lower fees are paid for the services of an advisor as it relates to management costs.

Best Investment Plans for Monthly Income

8. ETF’s

This acronym stands for exchange-traded funds.

Similar to mutual funds, the monies invested in these securities are derived from investors who pool their financial resources together.

There is one single investment, but it is diversified.

ETFs are sold to investors just as if the individual was buying a share of a particular stock.

ETFs again is a quality investment for individuals who are in the stock market for the long haul.

Additionally, if an investor does not have a significant amount of money, because of the pooled resources, this is a quality investment due to less money being required to purchase shares.

Investors of ETFs may be interested to know that digital investing or robo-advisors use these investment vehicles to build a client’s portfolio.

9. Dividend Stocks

Dividends are monies that are paid to shareholders. When a company is doing well, and profits have risen they disperse cash payments to their shareholders.

The benefit of dividends is that the income can be consistent.

It may not necessarily rise to the level of return realized on other investments, but dividends in addition to being consistent are a stable place to put one’s money.

This stability is because the dividends are issued from companies that have stable and foundational business practices and frequently see an increase in revenues.

When these dividends are dispersed, the investor has a couple of options.

These dividends can be reinvested back into the company to purchase additional shares.

Or the dividends can be part of one’s retirement stream of income during their retirement years

10. Real Estate

As part of the playlist and as the best investment plan for monthly income is the investment in real estate.

The individual can purchase real estate, make the needed improvements and resell the asset by placing the property back on the market.

This is known as flipping and can provide an excellent return on their investment.

Additionally, real estate can be purchased and can be rented out to other individuals.

The real estate can be actual homes for individuals to call home or business locations for companies looking to set up their business service in a brick-and-mortar location.

In addition, to the benefit of receiving monthly rental income, the individual can claim some deductions on their taxes as a landlord.

Other Investments

Rounding out your playlist portfolio is a number of other investments. These investments are not tied directly to stocks, bonds, or cash.

11. Cryptocurrencies

Yes, these are still investments even though they are not tied directly to stocks, bonds, or cash.

They are considered as alternatives in supplementing your portfolio.

They include assets like Bitcoin and Ethereum. These two possibilities of inclusion in your portfolio are defined as cryptocurrencies.

12. Valuable Assets

Added to the portfolio can be the inclusion of other valuable assets. Those assets can include:

Precious metals like gold and silver
A valuable coin or stamp collection
Valuable artwork

There are opportunities through various reputable agencies to include these alternate assets in to your total portfolio.

Others include:

13. Floating Rate Funds

14. REITs

15. International Bonds

16. US Treasury Bonds Bills and Notes

17. Short Term Corporate Bonds

18. Long Term Corporate Bonds

19. Royalty Income Trusts

20. Municipal Bonds

21. Dividend Paying Stocks

22. Timberland and Forestry

23. Preferred Stock

Developing Your Monthly Income Investment Plans Playlist

Rather than streaming music, you want to stream revenue. You are developing your playlist of investment plans for your monthly income.

You will need to turn up the volume on your investment device by 4 Ds. D does not stand for decibels but design, discipline, desire, and dollars.

The design is the plan of action, discipline is being resolute towards achieving the plan, desire is to be financially independent, and dollars needed to invest.

Best Investment Plans for Monthly Income FAQs

Which Investment Is Best for Monthly Income?

Most likely, the best investment to receive monthly income is through a rental property.

Typically, you would get a set amount on a set day each month through the collected rent.

However, it is important to note that the property owner doesn’t just sit back and collect their rent.

If not using a management company, the owner will oversee the property, arrange and pay for any needed repairs, etc.

How Much Money Do I Need to Invest to Make $2,000 a Month?

The quick answer is roughly 600,000 dollars. This $2,000 is based on the .04% rule.

There are varying opinions on this rule, but simply stated you multiply your portfolio by .04%.

This calculation of .04% times $600,000 would equate to $24,000 per year or $2,000 a month.

What Is the Best 20-year Investment?

The appropriate answer is that there is no “one size fits all” when it comes to investing.

The various investing considerations include your age, investment plans, and your risk tolerance.

One should do their research regarding investing and perhaps seek the advice of a financial advisor.

Of importance is to diversify your investment portfolio.

Considerations of investment vehicles include:

Balanced Funds
Target Date Mutual Funds
Index Funds

These investment vehicles are tied to the stock market, bonds, and cash.

Conclusion

Remember, you want a diverse investment portfolio. You don’t want to have one song that you play over and over again.

Let the full range of the investment music play on.

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