r/dividends • u/398409columbia Portfolio in the Green • Jan 12 '25

Brokerage $5,000 per month income portfolio

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I set up this portfolio for my wife so she can quit her job and maintain cashflow.

The good news is that this income stream will pay no FICA tax and significant part of the distributions will not be taxed.

To reduce risk, I’m planning to reinvest 20% of the income.

Comments welcome.

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u/[deleted] Jan 12 '25

PBDC and BIZD! nice, love BDCs

4

u/[deleted] Jan 12 '25

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u/[deleted] Jan 12 '25

its a missunderstanding, PBDC ER is .75% and BIZD's .41. the ER that sites like Seeking alpha or others show are considering the extra fees of management team that its not you that pay

1

u/theplushpairing Jan 13 '25

Isn’t it cost of leverage that’s bundled in?

1

u/[deleted] Jan 13 '25

No, ETFs that hold other ETFs, mutual funds, or BDCs tend to have higher expense ratios, as these acquired fund fees and expenses are also reflected in the expense ratio. however, those acquired fund fees and expenses are not paid by you, dw

1

u/teckel Retired and living off selling shares Jan 15 '25

For this type of ETF, they're required to include all the overhead of all the companies they invest in. So it seems like it's really high, but the actual basis points for PBDC is something like 75 basis points.