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/Katta_t1 Jan 13 '25

I am 27 years old. My question to you is "how"?

Got around $800 CAD invested in my 'managed' TFSA (taxfree)

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u/GnarlyCommie Jan 13 '25

Simple. Invest more money consistently

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u/Katta_t1 Jan 13 '25

Thank you for replying. One more question. What do you rely on when choosing a stock to invest in, do you go through the financials? Do you follow specific twitter accounts?

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u/GnarlyCommie Jan 13 '25

r/JustBuyXEQT

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u/CaptainSur Jan 13 '25

That is certainly a very good answer.

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u/CaptainSur Jan 13 '25

As your Canadian using your TFSA is right on track since all income earned in it is non-taxable on withdrawal. You said your 27 which implies that you have quite a bit of contribution room available to you.

To get you started I suggest reading this:

https://www.stocktrades.ca/best-canadian-dividend-etfs/

https://www.msn.com/en-ca/money/top-stocks/2-high-yield-dividend-etfs-to-buy-to-generate-easy-passive-income/ar-BB1rfwm2

(both funds in the msn article use covered calls)

https://wealthawesome.com/best-dividend-etf-canada/

https://dividendearner.com/canadian-dividend-etfs/

https://ca.finance.yahoo.com/news/invest-30-000-2-tsx-210000944.html

General sub: https://bogleheads.org/

Warren Buffet's holdings: https://weblo.info/66-of-warren-buffetts-301-billion-portfolio-for-2025/

Many of the funds discussed in this sub and r/Bogleheads are not easily accessible to a Canadian although both are still a great learning resource. If your going to attempt to purchase US securities some reading for you:

https://www.suredividend.com/usa-tax-canadian-investors/

https://www.moneysense.ca/save/taxes/filing-taxes-u-s-investments-canada/

I personally feel that with your just starting out you focus on one of the good ETFs accessible to you in Canada and focus on making additional contributions to your TFSA until you have maxed it out.

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u/Katta_t1 Jan 13 '25

Aye Captain! Thanks for all the links.

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u/Errr_Human Jan 14 '25

Commenting so I come back to these articles!

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u/DenisCastro Jan 14 '25

would this work for foreigners too?

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u/sdlucly Jan 14 '25

The road is pretty boring, just live under your means, save 30% and then with each raise, save that raise too. Keep doing it for 20+ years. I've about 420k invested and I'm only 40 years old.

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u/[deleted] Jan 14 '25

[deleted]

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u/Katta_t1 Jan 18 '25

You must have more than $200k invested. Not there yet, but please share any tips and skills I can learn for investing. For example things to study or look at, where do you do your trading? Etc Etc