Let's say I have a bunch of assets worth some sum of money (land, diamonds, etc.). These are not generating income. I want to sell all these assets and use the money (let's call it the principal) to generate a fixed stream of money (income) for the rest of my life. I am willing to commit to not touch this principal until my death, in which case I wish to will it as desired.
I am looking for a 10% guaranteed rate (per year) for the income stream and an increase of the principal every year to match inflation (thus resulting in an inflatation increase of the income stream).
Does such a beast exist? I'm looking for something simple/automatic (like a "fund") and not a methodology (i.e., a combination of CDs, bonds, stocks, etc.) which requires work.
One compromise I am willing to make to achieve the goal is that the principal can belong to a nonprofit organisation and/or the income stream can be donated for nonprofit purposes. An example would be like how a foundation operates, but my understanding is that a foundation's "endowment" is actively managed and not all income is distributed and the rate is not guaranteed.
I am asking this question because I am naive about what even such a vehicle would be called. To this date, I've always believed in just holding assets (since I personally don't need the income), but now I find the value of an income stream to be used for nonprofit purposes (say scientific research) to be more beneficial.
--Ram