Question:

Trust Fund Interest?

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I am having 250,000 dollars put into a trust for me. I have been told that I will be able to "live off of the interest" My step-mother seems to think that will be A LOT, and I dont agree. I am trying to figure out about how much it will be. Does anyone know a starting point, like how much interest a trust fund generally gets? any guesses on how much it will be?

thanks in advance!

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  1. If you can, you'll want to speak to the trust fund manager about the investments for a full answer.  However since she said interest and trusts are normally structured to preserve the ability to pay beneficiaries for a long time, it would be a reasonable guess to think treasuries.  Treasuries would give you income of about 10,000-12,000 per year before taxes.  Depending on your location and lifestyle that might (but is unlikely) to provide enough income to live on but I wouldn't suggest making it your only source of income.  

    If they were to put it in very aggressive investments it would probably only provide about 15-25 thousand in income with a substantial risk that the trust balance would decline in the near future (or the income stream would be interrupted.  


  2. idk
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