I ask because at my old job one of the coworkers was going to retire, and he was talking to another guy. He said he had 200k invested and he could take $1,000 a month out w/o it affecting the principal. So that comes out to a 6% APY (he’d be taking 12k out a year on a 200k investment with the principal staying at 200k) on an investment that (from the way he talked) would not really run the risk of destroying the principal.
I thought the only truly safe investments were CDs, treasury bills and treasury bonds, but those are usually 3% or so.
A 30 year treasury bill will give almost 5%, but I don’t know if I’d consider that a safe investment considering where our economy is headed.
So are there relatively safe investments that offer 6%, or are you at moderate+ risking losing your principal at those kinds of returns?