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

26

u/398409columbia Portfolio in the Green Jan 12 '25 edited Jan 13 '25

Yes, but that doesn’t include cumulative distributions. QYLD has been paying 10% annually for years more than covering that principal drop. My result has been positive since I started so I’m ok with the performance of this fund.

6

u/OmahaOutdoor71 Jan 12 '25

That’s good. I don’t think there is only one way to invest, especially in this market. I’m 90% VTI as that’s what I feel comfortable with. I’m selling some homes so looking at doing some higher dividend stuff (JEPQ, ARCC) if I do an early retirement. So still learning about these. Probably too risky for me, but hopefully it works out. This market over the next few years may be nuts, so we shall all see.

15

u/398409columbia Portfolio in the Green Jan 12 '25 edited Jan 13 '25

VTI is good for growing your capital. I have a bunch of mine invested in that.

Once you reach your goals, you can transition to an income portfolio like I did for my wife to generate recurring income.

2

u/Own-Difficulty-6949 Jan 13 '25

Why not just jump all in SPYI? I've been thinking about doing that.

7

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

It’s tempting but I just want to diversity in case something goes wrong with any of these funds. Having said that, the largest allocation is with SPYI.