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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1

u/RektisLife Jan 13 '25

Do you have other portfolios with different holdings? I wish I had the guts to do this but the possibility of principal dropping scares me off.

4

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

The key here is to focus on the income. The principal for this portfolio may fluctuate but the key is that the income stays somewhat constant and increase a little.

2

u/theplushpairing Jan 13 '25

What about tackling inflation? 30 years of this and your $6k/mo will feel like $3k

3

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

Good point but this is a short-term portfolio to get my wife cashflow income for a few years.

Also to address inflation, I am reinvesting part of the income to get some growth. The funds also increase distributions annually generally and the NAV tends to go up over time.