How to generate investment income

Turning savings into regular income comes down to one equation: income = amount invested × yield after tax. Raise either one and you get more. IncomeGrid helps you discover higher-yield income opportunities you may not have looked at, so you can earn more on the same money. It has 40,000+ investment options screened, each with its yield, after-tax yield and a risk level from 1 to 5.

How much do you need invested?

Yearly income you want ($)
Yield before tax (%)
Tax on that income (%, federal + state)

Step by step

Set the target – monthly or yearly income, and when you need it to start.
Pick a risk level – lower risk usually means lower yield and needs more capital.
Choose income types – Treasuries, bonds, dividend payers, REITs, funds; see income-producing assets.
Compare after tax – after federal, state and each investment type tax.
Spread it – many issuers and maturities; a bond ladder gives known dates.
Review yearly – yields change as rates move.

Why a small yield difference matters

Because the capital needed is income divided by yield, a higher after-tax yield lowers how much you must invest for the same income. Try changing the yield or tax rate in the calculator above to see it.

Monthly income

If you want money every month, combine monthly payers (many bond and money-market funds) with holdings that pay on staggered dates. See investments that pay monthly.

Choosing between safety and yield

A lower-risk portfolio needs more capital for the same income. A higher-yield portfolio needs less but can see payments cut or prices fall. Many people split the difference: a base of Treasuries and high-grade bonds for the income they can't do without, and a smaller slice of higher-yield assets for extra. Comparing within each risk level by after-tax yield helps you earn more from each slice.

Inflation and the income target

Income that stays flat loses buying power. Building in some inflation-linked income (TIPS, I bonds) or growth, and revisiting the target every few years, keeps the plan realistic.

How IncomeGrid helps you earn more

IncomeGrid helps you discover higher-yield income opportunities you may not have looked at, so you can earn more on the same money. It has 40,000+ investment options screened, each with its yield, after-tax yield and a risk level from 1 to 5. Choose where you live and every yield is shown after federal, state and each investment type tax, so you can see which options pay you more.

Find income that pays more → or browse example income portfolios

Frequently asked questions

How much money do I need to generate $1,000 a month?

Divide $12,000 by your after-tax yield. Use the calculator above with your own numbers.

What is the safest way to generate investment income?

Treasury securities and insured deposits carry the least credit risk, with lower yields than riskier income assets.

Should I spend the income or reinvest it?

Reinvesting grows future income; spending it is the point once you need the cash.

Not investment advice. General information only; yields change, check the source before acting.