Hi everyone,
As many others have successfully combined IP investing with another 'element' to produce income(eg business, shares, renovating, developing, sell down and pay down debt, etc), I am interested in the effectiveness of investing in a High Yielding Index Fund to produce a sustainable income stream over time. (Eg Vanguard's High Yield Australian Share Fund, or something like the Perennial Value High Yield Shares Trust)
(http://www.perennial.net.au/content/boutiques/2169/2709/2717/10736)
I am thinking of the possibility of using some of our excess money each month to pay down IP debt, and to invest a portion into a High Yielding income fund. (As for example those above)
I am a little confused as to how the dividend distributions from the fund work. With the Vanguard High Yield Australian Share Fund, the unit price is approximately $1.14. The distributions occur monthly, and according to this information:
www.vanguard.com.au/personal_investors/fund-performance/managed-funds-up-to-$500000/en/income-distributions.cfm
the distribution in July was .49 cents per unit. This seems a very high yield. What am I missing??
Is anyone currently combining the two strategies (ie IP with investing in Index Funds or the like for income). How successful is it?
Is it better just to pay down IP debt and draw an income entirely from Ip's? Or is the combination an effective strategy?
Would appreciate people's ideas - especially an explanation on the distribution of the monthly/quarterly dividends.
Look forward to reading people's replies.
Regards Jason.
As many others have successfully combined IP investing with another 'element' to produce income(eg business, shares, renovating, developing, sell down and pay down debt, etc), I am interested in the effectiveness of investing in a High Yielding Index Fund to produce a sustainable income stream over time. (Eg Vanguard's High Yield Australian Share Fund, or something like the Perennial Value High Yield Shares Trust)
(http://www.perennial.net.au/content/boutiques/2169/2709/2717/10736)
I am thinking of the possibility of using some of our excess money each month to pay down IP debt, and to invest a portion into a High Yielding income fund. (As for example those above)
I am a little confused as to how the dividend distributions from the fund work. With the Vanguard High Yield Australian Share Fund, the unit price is approximately $1.14. The distributions occur monthly, and according to this information:
www.vanguard.com.au/personal_investors/fund-performance/managed-funds-up-to-$500000/en/income-distributions.cfm
the distribution in July was .49 cents per unit. This seems a very high yield. What am I missing??
Is anyone currently combining the two strategies (ie IP with investing in Index Funds or the like for income). How successful is it?
Is it better just to pay down IP debt and draw an income entirely from Ip's? Or is the combination an effective strategy?
Would appreciate people's ideas - especially an explanation on the distribution of the monthly/quarterly dividends.
Look forward to reading people's replies.
Regards Jason.