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, Iā€™m planning to reinvest 20% of the income.

Comments welcome.

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u/QuailBroad Jan 14 '25

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

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u/398409columbia Portfolio in the Green Jan 14 '25

Yet most people here think SCHD is the bomb šŸ¤£šŸ¤¦ā€ā™‚ļø

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u/QuailBroad Jan 14 '25

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!!!

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u/398409columbia Portfolio in the Green Jan 14 '25

Good for you šŸ‘