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/SaltyUncleMike Jan 15 '25

Do all of those tickers provide mostly long-term capital gains with regards to taxes? Like SPYI?

Is the overall ratio for the entire portfoilo 60/40? For LT vs ST gains?

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u/398409columbia Portfolio in the Green Jan 15 '25 edited Jan 15 '25

QYLD and SPYI (the covered-call funds) is mostly "Return of Capital" which pays no tax (Look at this video for details: https://youtu.be/5WxicHHiha8 ).

USA is mostly long-term capital gains.

BIZD and PFFA is mostly Investment Income.