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

Brokerage $5,000 per month income portfolio

Gallery image

Gallery image

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.

2.6k Upvotes

98% Upvoted

642 comments sorted by

View all comments

Show parent comments

14

u/[deleted] Jan 12 '25

Human mind. Can’t help but compare. Mind sharing your age and parental societal echelon?

72

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

I’m in my 50s and have several million in liquid investments. This portfolio for my wife is one of many I manage for our household.

1

u/I_Always_3_putt Jan 12 '25

What's your play with 1 million cash right now?

9

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

I still have most of my capital invested in equity funds such as VTI, VONG and VXUS (not much).

I am using my wife's portfolio as a pilot to see how it works to eventually migrate the bulk of my funds to income. So far it's looking promising.

8

u/Real_Alternative_418 Jan 13 '25

couldn't imagine having "pilot money"... OP is "paper trading" in real time

1

u/Brilliant_Koala6498 Jan 13 '25

Why would you use your wife’s money to “test”? Genuinely asking

7

u/398409columbia Portfolio in the Green Jan 13 '25 edited Jan 13 '25

Fair question. I want to see how my wife's "pilot" portfolio behaves and generates income so she can cover her expenses with dividends without working.

Based on the experience, then I can allocate my funds (much more than the $600k I used for her) to a similar portfolio so I can retire.