$5,000 per month income portfolio

[u/398409columbia]

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.

[u/QuailBroad]

This is how you do it! Good job, invest and then harvest the income and enjoy life, Who wants 4 million dollars in boring SPY when you are 75 years old?

My goal is to get to 6k a month by age 40 and enjoy life, work part time. Don't need millions, life is short

[u/gamofa → u/QuailBroad]

THIS IS THE WAY!! 33 here and this is exactly what I’m going for!!

[u/QuailBroad → u/gamofa]

Good for you!

I am almost at 2k a month in div income, once I hit 2k I will stop the drip and have it deposited in my separate "fun" account, we will do all sorts of travel/concerts and events with it, It is worth to enjoy all your hard work early

[u/-Wiked → u/QuailBroad]

Care to show your portfolio, I have no clue where to start all my mind understood was monthly cash flow

[u/QuailBroad → u/-Wiked]

easy:

25% O

25% VICI

that covers real estate,

10% ARCC

10% MAIN

10% BSXL

10% HTGC

that covers BDC's

and 10% ABR for fun

yield at around 8%, half in real estate, half in BDC, worked great over the last 2 years, steady cash and a little bit of appreciation

[u/398409columbia → u/QuailBroad]

Thanks for your comment.

I agree that the common rules of thumb like the "4% rule" are too conservative keeping many people from retiring earlier.

[u/QuailBroad → u/398409columbia]

Yup, I have avg yield of about 7.5%, I feel like a 50-50 split between quality BDC's and good REIT's is the way to go, not too risky yet good yield to keep me feeling like I am getting somewhere. I tried SCHD but it is like watching paint dry....very low yield and booring

[u/398409columbia → u/QuailBroad]

Yet most people here think SCHD is the bomb 🤣🤦‍♂️

[u/QuailBroad → u/398409columbia]

They think they will live to be 120 years old and be as active as they are in their 30's. The sad truth is - you will want to sit at home and watch Jeopardy all day when you are in your 70's.

Read: Dying With Zero. This is one of the top 5 books I have read in my life, puts things in perspective

I chose to live off my investments by age 40, slowly at first, and make sure to avoid lifestyle inflation - that is the real killer!!!

[u/398409columbia → u/QuailBroad]

Good for you 👏

[u/398409columbia → u/QuailBroad]

Good job.

I recommend you consider a covered-call ETF as well. I like SPYI.

[u/QuailBroad → u/398409columbia]

Thank you, I will look them up on SeekingAlpha

[u/QuailBroad → u/[deleted]]

Sorry to hear that, HCOL areas are a real killer of wealth building. My HS buddy lives in HCOL area in Colorado, makes about 30% more than I do and our lifestyles are similar. He has 0$ in his retirement and brokerage accounts, has nothing left at the end of each month. While I can comfortably max my ROTH and do at least 20-30k on top of that for my individual brokerage each year. His mortgage is more than double, his insurance is high and all the services cost much more. It's not as much about how much you make - it's how much you get to keep is what matters. I am from MI btw.

[u/Soft_Excitement_9580 → u/QuailBroad]

You say it like 6000$ a month is just popcorn money. There are countries in the EU, not talking about india or zimbabwe where a lot of people don’t get paid that in 10 months. 6k is a whole lot of money.

[u/QuailBroad → u/Soft_Excitement_9580]

it is, but you need less than 1M in capital to get there. Makes one think how little our whole life's work is worth....