I shall be getting $100,000 on sale of my property. How do I invest the money to get a monthly income on the capital?
First off, the answers that are already on here are spot on. I just want to add an alternative view.
If you take $100,000 and put it in a high risk stock, then you might, and that's a HUGE might right now, get 8% return. However, if you take $20,000 of that money and leverage it to buy a $100,000 rental property, you might make that $800 a month and still have another $80k to invest elsewhere.
This is a conservative estimate. I have 3 four family properties right now. Each were on average close to 100k and they all do well beyond $800 a month after all the expenses. I have all three financed as well.
There's plenty of free advice on this over at https://BiggerPockets.com
Like I said, it's just an alternative to the already mentioned answers here. It works for me but may not work for everyone. Buy at your own risk and for the love of god DO YOUR OWN RESEARCH.
You'll probably be disappointed, but here are some very broad options:
Low Risk - Interest Bearing Savings or Money Market Accounts: Currently you can easily find 1.5%-2.0% interest on these - monthly income ~$150. Bonus is that the capital can be insured by FDIC. Here you're probably not keeping up with inflation
Low-Mid Risk - US Government Bonds: Yields are currently ~1.6%-3.0% depending on term. Monthly income ~$125-$250. Advantage is they're considered very safe and you might beat inflation.
Mid/Mid-High Risk - Corporate and Municipal Bonds: Wide range of yields depending on rating/risk/category/etc. Getting closer to the 5% range - monthly income ~$400. If the company or municipality goes out of business or bankrupt, you might lose all of your money.
High Risk - Stocks/Equities: Historically S&P 500 has returned ~10% annually. Monthly income ~$800. Value ranges dramatically - you're riding the market. Most people wouldn't use this for monthly income, but rather for growth until retirement where on the way they'd convert to less risky assets as they approach retirement.
What you should choose depends entirely on your goals (retirement? spending money?), time to achieve goals, tolerance for risk, additional income, etc, etc ad nauseam.
If you're seeking income with moderate risk and will not have a need for the money for some time, consider preferred stocks.
If you go the ETF route, PGF pays 5.45% and in the past 4 years, its share price has been been no more than $1 higher or $1 lower. PGX pays 6.24% and price range over the past 4 years is about $1 higher, 60 cents lower.
There are 8-10 other Preferred ETFs as well (see ETFdb.com). If you don't like some of the holdings in the ETFs, you can buy individual issues. Stick with investment grade so that the existence of the company and the dividend don't become an issue. The prime risk would be long term rates rising. Avoid paying more than par (usually $25) unless the yield is attractive enough to warrant the premium loss if called. Avoid issues above par that are callable in the near future.
Some but not many preferred stocks pay monthly income. You could stagger individual holdings since there are ex-div dates every week of the month.
If this intrigues you, pick up a copy of "Preferred Stock Investing" by Doug LeDoux ($10-20 used/new) so that you can make a more informed decision.