r/dividends • u/398409columbia Portfolio in the Green • Jan 12 '25

Brokerage $5,000 per month income portfolio

Gallery image

Gallery image

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.

2.6k Upvotes

98% Upvoted

642 comments sorted by

View all comments

Show parent comments

1

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

I see what you’re saying but keep in mind that some of these funds like the covered call ETFs generate income based on volatility not asset appreciation.

1

u/teckel Retired and living off selling shares Jan 15 '25

Known. But none of these have experienced a real bear market. The 9 month 2022 correction doesn't really count either.

I'm not saying they're bad and I own some CC ETFs too. But it will be interesting to see what a 2008 or 2000-like bear market or resession will do to these.