Do you dream of saving enough to stop working?
Do you want to continue working but earn huge tax free income to supplement your income?
Personally, I like working. However, I would like to know that I could stop working any time I wanted.
How do I invest to make sure I get a great income?
I know that stocks for me are too risky. I found it to be very disheartening on November of 2008 when the stock markets starting crashing. I thought to myself that I wish I had purchased more tax free municipal bonds. I got sick of the thought of saving hard my whole life and then watching my savings disappear because the stock markets were collapsing. I thought to myself that it just shouldn’t be this way. I have lost faith in the stock markets.
Why should I lose all this money I thought when I was a good American citizen. I worked hard with my spouse to save money and invest in American stocks. CNBC talks about stocks. The newspapers talk about stocks. Warren Buffett talks about stocks. Now they were all dropping like rocks. I guess I don’t trust the system anymore.
Right now, I feel that I need a large portfolio of tax free municipal bonds. Many of these bonds are now paying around 6% completely tax free. I particularly like the tax free municipal bonds that are backed by bond insurance issued by Assured Gurantee or National (the old MBIA). I bought some New York, Puerto Rico, and other municipal bonds from all around the country.
Just how much would I need to invest in tax free bonds to feel secure. Well, $1 million invested in tax free bonds would pay around $60,000 a year in tax free income. Since I want at least $120,000 a year in income (about $10,000 tax free a month), I need a portfolio of around $2 million in tax free bonds.
Some people may feel secure with more tax free income. The rule of thumb right now is to invest $1million in tax free bonds for every $60,000 a year you want in income.
- $1 million = $60,000 year in tax free income
- $2 million= $120,000 a year in tax free income
- $5 million= $300,000 a year in tax free income
- $10 million = $600,000 a year in tax free income
- $100 milliom = $ 6,000,000 a year in tax free income.
Now we know how much we all need to live comfortably. So, let’s start working hard and saving.
Please feel free to call our sponsors to help put together a portfolio of tax free bonds.
