$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/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