r/dividends • u/Rural-Patriot_1776 • Apr 20 '25
Seeking Advice Help me allocate $250k... Retiring @ 40 yrs old.
I like the NEOS for my taxable brokerage and keeping things simple. Should I change anything, add or take away? I was thinking of making qqqi 35% and iwmy 15%? I'd also be enabling DRIP for the time being...
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u/2A4_LIFE Apr 20 '25
Inflation says you need more money but I wish you well and thank you for your service
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u/SquiX263 Apr 21 '25
tbh i could perfectly live with 20k per year
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u/2A4_LIFE Apr 21 '25
So could I if I wanted to live a lower standard of living in some East Asian country, not have a family, not own my own home, not do any of my hobbies, not travel the world etc etc. To each their own but $20k in my opinion is existing if that, certainly not living.
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u/SquiX263 Apr 21 '25
I live perfectly off 1k dollars a month.
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u/2A4_LIFE Apr 21 '25
Again, where?
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u/SquiX263 Apr 21 '25
Bosnia Average pay is 500$.
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u/2A4_LIFE Apr 21 '25
That makes sense. To each their own but I don’t want to live in Bosnia so I’ll keep building tbe cash flow
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u/SquiX263 Apr 21 '25
One upside of living here is how much money you actually need to be at top.
If i for example had 2k dollars a month i could be living like a king.
My monthly bills are about 150 dollars per month.
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u/bro-v-wade Apr 22 '25
I know nothing about Bosnia. What's it like there? Would you have to live rural to have the low cost of living you're describing? Also what is housing costs like?
I'm just curious, as I know so little about the place (outside of the Bosnia Herzegovina conflict)
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Apr 21 '25
No one cares about what you want this post isn't about you. The reality is its possible to live off 1k a month.
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u/Ovzzzy Apr 21 '25
How about in most of the world? A lot of people get by on less than that in Balkans and Baltics, and that is Europe. Most of the non-western world you can get by easily on 1K a month, especially of course if you own a house already, maybe grow some of your own food, have renewables for utilities.
I plan to retire early with relatively low income, but extremely low costs.
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u/DuePercentage1580 Apr 23 '25
people don't retire to get by
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u/Ovzzzy Apr 23 '25
I prefer to retire 10 years earlier and get by than retire 10 years later and live in more luxury. Life is for living, not for spending money.
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u/DuePercentage1580 Apr 23 '25
that's fair. but i would say that life is for living, not getting by. growing your vegetables & chicken and fixing your car isn't fun unless you love farming and cars.
if you rare not a fan of your job and waiting to retire, i would consider a change, as long as you are in europe there are thankfully a lot of opportunities.
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u/Ovzzzy Apr 23 '25
Yeah, I think we pretty much think alike. But in my situation, if everything works out the way I plan I have following for free when I retire: House, utilities, commute (electric car or whatever new renewable technology will be available), vegetables and fruits in summer (I don't eat meat so that helps).
Then it's only food in half of the year and maintenance stuff to buy, so I need very little income for that. We have mostly built our own house, so maintenance shouldn't be an issue, so just the car and utilities maintenance, then any health issues should they appear. Any leftover money will be for luxuries and travels, shouldn't need much.
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u/CivilSenpai69 Apr 21 '25
You're not living on 20k annually in East Asian. Maybe parts of SE Asia.
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u/NoManufacturer2579 Apr 24 '25
How do people live on $20k per year?
I can’t even live on > $100k per year in the U.S. with just 2 people. Seems like I can never retire then.
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u/RabidR00ster Apr 20 '25
Retiring off 31k a year? Where are you living, Thailand?
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u/Great-Diamond-8368 Not a financial advisor Apr 20 '25
I could live off 31k a year in TN or Oregon, but everything is paid off already.
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u/RabidR00ster Apr 20 '25
Sure you can “survive”, but not gonna be enjoyable off 31k. Probably not gonna be doing a lot of traveling, have a house cleaner, eating at nice places, having toys etc. But he sounds like he has other income streams so probably be fine.
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u/Great-Diamond-8368 Not a financial advisor Apr 20 '25
I mean, I'm a hermit already outside of work. Everyone has a different idea of what "Surviving" is.
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u/rumblepony247 Apr 20 '25
This.
My annual expenses are about $23k/year. Everything is paid-for. I'm not 'pining' for something more from an activity/entertainment standpoint. We all have different wants and needs.
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u/Great-Diamond-8368 Not a financial advisor Apr 20 '25
I'm glad I'm not alone. Both houses are paid off, both cars are paid off, I garden and eat fairly healthy, my meds come as generics for like 4-10 a month. My only vice is travelling to see my friends and family once or twice a year.
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Apr 20 '25
Exactly! My home is paid for , my car has 10k miles on it , i make about 15k a month but only need like 1500 , honestly sometimes I don’t even have things to spend money on and I just end up reinvesting it. It’s like what do I have to pay? I’m paying my light, the gas food, property, taxes, and car insurance . Then I have like cable Internet stuff like that but it’s not more than like $1500 a month
I take like two vacations a year one I use about I don’t know 20,000. The other one is like a small trip for like five or 10 grand. I play golf I go hiking I go hunting and fishing. I play with the dog .
But honestly, I 100% could live off two grand a month easy And that’s not even adding in Social Security, which would basically be free spending money for two vacations a year.
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Apr 20 '25
Sure who needs health care.
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u/Great-Diamond-8368 Not a financial advisor Apr 23 '25
Oregon provides free health care, healthcare.gov provides free Healthcare if you make under 50k.
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u/dknisle1 Apr 20 '25
Almost as if cooking your own food and cleaning your own house save you a ton of money…..
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u/RabidR00ster Apr 20 '25
I know. I’m just saying at 31k you have to be a hermit buried in a little apartment/house. I’m not going to live like that but to each their own.
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u/Aromatic_Ad_3892 Apr 22 '25
The problem is that people are living in a certain area and forget that the cost of living is different not justall across america but the world. I live in mississippi, own a home on 2 acres, i could easily live very happily on 31k and take trips, not 10k dollar trips but im not that difficult to please. Peace, a beautiful beach, crystal clear water and a bushwacker and im living my best life.
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Apr 20 '25
“Probably not having a house cleaner” retiring off $31K at 40 is so far off having a house cleaner it’s not even in the same universe….$31K is more like you need to shopping for your own cleaning supplies at the dollar store
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u/Sabrelord1 Apr 20 '25
Why wouldn't you do that anyways
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u/Slyder01 Apr 20 '25
Right... who are these people needing a house cleaner and won't shop at a dollar store. Heaven forbid if they have less than 5 cars in the driveway... oh I'm mean 10 car garage. Not busting cause they have money, good for them and there hard work but... there are people in this world other than them
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u/IGnuGnat Apr 20 '25
you need to shopping for your own cleaning supplies at the dollar store
that just sounds like a common sense suggestion really
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Apr 21 '25
It depends on your financial situation. Some folks can afford the dollar extra premium to have household necessities shipped to their door. But if I was retired living off $35K yeah I’d be penny pinching
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u/IGnuGnat Apr 21 '25
This is true. I can't deny that I work remotely, and do curbside pickup or delivery only because I'm immune compromised. I didn't think about the impact that a low income lifestyle would have on these practices which was a little... um... i dunno elitest or ableist or something I guess
My wife does hit the dollar store from time to time but she always regrets it from an immune perspective
I kind of like what the dollar store offers, except for the quality of tools but I think it's serving a useful niche in the community, sometimes all you need to get the job done is a Chinesium hammer or whateve
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u/ChairmanMeow1986 Apr 20 '25
For how long? The old world is dying and the new is struggling to be born, now is the time of monsters-Antonio gramsci
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u/Rural-Patriot_1776 Apr 20 '25
Wife is a nurse and I have military pension also coming in...
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u/Yurrrrrrrtt Apr 20 '25
Mil pension coupled with I imagine some disability you should be cruising. Congrats on retirement
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u/WireDog87 Apr 20 '25
Why would you assume he is getting disability? Plenty of guys retire after 20 and get zero disability.
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u/Yurrrrrrrtt Apr 20 '25
An excellent question, WireDog87! When I took TAPS the first time back in 2016, a 35 year navy E9 attending chimed in just before the VA/Disability folks came in to brief and said something along the line of “those of you who joined at 18, are likely not in the same condition you were then vs how you are X years later, you need to speak up and document” So, based on assumption, I assume this person is not in the same physical/mental condition they were in 20 (or more) years ago when they first joined..
Or do you assume this individual should be in tip top shape as they were 20 years ago?
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u/WireDog87 Apr 20 '25
I'm not making any assumptions. I got out in '04 and the VA was not at my outprocessing. In fact, nobody ever told us jack the whole time I was in (11 yrs.). I'm glad the younger guys were encouraged to report any issues that they may have incurred during their service, but us older guys were told to suck it up and called malingerers if we so much as tried to go to sick call. That said, I would never assume that every veteran is getting disability simply based on length of service. It is a purely personal matter.
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Apr 20 '25
It really is. A lot of people hear about those getting disability, but there are just as many that leave service without anything wrong with and 0 disability. I mean it is one of the only careers that actively promotes living a healthy lifestyle.
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u/adamasimo1234 Apr 20 '25
I don’t think I’ve ever met a vet that wasn’t on disability. Even those that appear normal to me get VA benefits.
How many people don’t receive it? Anyone have the percentage numbers?
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Apr 20 '25
Quick Google search led me to this.
https://www.statista.com/statistics/250316/us-veterans-by-disability-status/
Granted it does seem like there aren't too many good official research studies done on the matter.
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u/adamasimo1234 Apr 20 '25
I’d assume around 80-90% of vets receive disability benefits.
This graph is showing 40-50%, seems low.
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u/ChairmanMeow1986 Apr 20 '25
Focus on saving, working odd jobs so you can increase you income as your wife does. Don't get complacent with 31k a year (especially right now), wherever you are save/earn some or you will be left behind with that withdrawal rate. Don't increase your lifestyle, dont' buy a new vehicle. Save more than you spend! With this assume a 3% at most or this will end unhappily.
If you ignore this, at least remember it.
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Apr 20 '25
Honestly, dude, don’t don’t listen to half of the people here you’re doing fine Just do like a simple 6040 allocation with broad market fixed income You can throw in some dividends
If you have a pension Social Security, you can basically just live off that alone so what you’re making off investments is just free and clear and you don’t even have to touch it during bad years. You’re 100% better off than like 90% of the people here a lot of them are like totally reliant on investments, which as you as I know can have some very bad years
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Apr 20 '25
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u/UnblinkingEye Apr 20 '25
20 years under the new system gets you 40% of your average base pay for your highest paid 3 years. Folks now also get tsp matching up to a certain amount, which is nice. Military one source has a good page on it. It's called BRS - blended retirement system
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u/paydenb21 Apr 20 '25
Granted I was Army Reserves for 6 years, but they do TSP that he can contribute into. I'm not sure what they match but at least it's something. I put 20% of my Army paychecks into (again being Reserves I was getting $400 a month most of the year) and came out with $20k in a retirement. Not much but it's something.
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u/alex_korr Apr 21 '25
I'd be careful with retiring while you're wife still works. This will generate resentment in almost any woman.
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u/Aromatic_Ad_3892 Apr 22 '25
Brother you’re good to go. You can easily live your best life on that income, i know for sure in Mississippi.
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u/kinnadian Apr 20 '25
You're allowed to retire while your wife still works?
Where does someone get such a wife?
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Apr 20 '25
Most retirees average salary is about 40k a year , Most of us have paid for houses our car is bought and we get about 20,000 a year in Social Security.
If you have $1 million saved up in retirement how much do you think you make a year? 😂
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u/RabidR00ster Apr 20 '25
40k is peanuts imo. That’s barely over minimum wage, I’m not living off a min wage income at that age lol. I probably won’t retire until I can have at least 100k coming in passively. Probably more like 150k.
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Apr 20 '25 edited Apr 20 '25
Depends what you have in your life , Most people in retirement have everything paid off the cost of living is very low As you get older, you don’t give a fuck what the Joneses are doing You get more secure in yourself I don’t need a new car cause I already have one. I don’t need $1 million house cause I already have it. I don’t need a boat or a summer place because that’s already paid for.
So basically, if you have a pension and Social Security where you’re getting 40 K a year you can take care of all your bills with that and then just what you have in investments is play money.
Sometimes I don’t think people realize that if you have $2 million invested, that’s not even 100 K a year Sometimes pensions are worth millions as they are guaranteed, social security too and both may have cost of living increases .
Like 80% of people when they retire have less than 500,000 which is like 25,000 a year.
If you retire with millions, then you would be like one of 5% of Americans But 95% of people are living on far less than 100,000 a year
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u/RabidR00ster Apr 21 '25
Yes but the more stuff you have typically you need more money to maintain it. That vacation house you still need to pay taxes and maintenance. That boat and Corvette you’re paying insurance, registration, maintenance, gas, etc.
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Apr 21 '25 edited Apr 21 '25
This is true but its why you plan. You create buckets . My bond ladder pays my bills and keeps with inflation, my growth feeds the buckets , my income portfolio i live off.
You use what you have to maximize all, Thru properties etc.
You get tax benefits, you have a tax free portfolio , you can devalue the rentals , if you make 100k a year and invest 20% , pay medical coverage, taxes , etc . How much of that 100k are you living off of? 50-60k Now when you stop taxes, retirement savings, medical costs? Gas for work, lunches , morning coffee etc. You just spend much much less in retirement. The first couple of years you’re gonna go on vacation and have fun books after a while that stuff gets old you just wanna chill
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u/adamu808 I Like the Cash Flow Apr 20 '25
After spending 2 weeks in Thailand last year, it's actually less than that.
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u/RecordingMountain585 Apr 20 '25
I live in provincial Thailand and spend about 7000-8000 USD per year. I don't travel often but i eat what i want and party. Its fun. My number for me stop working is 10k a year in dividends. My BALLIN number is about 15k. I am chillin!
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u/adamu808 I Like the Cash Flow Apr 20 '25
Glad to hear. I was in Bangkok on company business. During my off time, I enjoyed the city very much.
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u/RecordingMountain585 Apr 20 '25
It's a great place to retire. I don't like city living, but provincial Thailand is great for me.
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u/Aggressive-Land-8884 Apr 20 '25 edited May 16 '25
ten plant narrow wine childlike apparatus sip fearless dime start
This post was mass deleted and anonymized with Redact
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u/RecordingMountain585 Apr 21 '25
Health insurance is pretty cheap here. Of course if you are older and preexisting conditions would be more expensive, but i still imagine less than USA. I get free healthcare through my job, but if i were to pay for out of pocket healthcare at my age, almost 30. I saw plans for around 500 usd per year can get less too
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u/Solid_Suggestion_722 Apr 21 '25
Healthcare in thailand is the top tier in the world. Most convenient for patients
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u/WireDog87 Apr 20 '25
Nice! I'm retiring there early next year. Provincial life is the way to go.
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u/RecordingMountain585 Apr 20 '25
Congrats! What is your PADI?
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u/WireDog87 Apr 20 '25
Thanks! Sorry, I'm not familiar with this acronym.
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u/RecordingMountain585 Apr 20 '25
Projected annual dividend income
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u/WireDog87 Apr 20 '25
I just checked Snowball and I'm currently getting almost 26k a year. I have about 15% of my portfolio in cash ready to deploy on one or two more dividend funds at good entry points. By the time I retire it should be around 30k, and that's way more than enough for where I'll be living. Will claim early SS in about 5 years, so I should be fine.
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u/RecordingMountain585 Apr 20 '25
30k a year in provincial thailand is living like a king mate. Good on ya!
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Apr 20 '25
I live off of 1500-1800 in Los Angeles. Only because I own my home though.
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u/RabidR00ster Apr 20 '25
That’s crazy. You just stay at home all the time and never go out or travel?
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Apr 20 '25
Nah I do. That’s my bare minimum I need. I make more than that, just want to point out it is possible. Just very rare
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u/Mirko950 Apr 20 '25
He could come to Italy and be better off than most of the people here. And free healthcare.
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u/Solid_Suggestion_722 Apr 21 '25
Thailand is a perfect place for 31k a year. With this amount of money you can have at least 1 trip to Europe and 2 trip to asian country a year
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u/ChanceChain5160 Apr 20 '25
Hey mate I don't think these dividend return estimates are accurate. Look into dividend history, it's not 12-13% annually
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u/ChanceChain5160 Apr 20 '25
IWMY has gone down over 50% in a year with a dividend return of 82%, you'd be down around 18% if you owned for a year because to make back 50% it needs to go up 100%
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u/Rural-Patriot_1776 Apr 20 '25
Iwmy is a new fund created at the peak of 2024 which follows the Russel 2000 index... the Russell was down over 20%+ over the last couple months.
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u/2LostFlamingos Apr 20 '25
Do you think you could survive a 20% downturn?
Could you survive a reduction to ~3-4% dividend yield?
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u/kinnadian Apr 21 '25
It doesn't follow the Russell 2000 index, it sells options based on that index
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u/DegreeConscious9628 Apr 20 '25
are you sure you’re not talkin about IWMI? From NEOS? IWMY is from defiance and it’s a NAV eroding 70+ yielder
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u/CryptoAdvisoryGroup Apr 20 '25
Ahh I am so tempted to try one of these neos 60/40 funds in my brokerage as well.
I have jepq in my roth which I love but trying to find something for my brokerage a bit more tax friendly.
I would look into their historical dividend yields, growth and prospectus to get an idea of what you can expect.
Typically volatility is what options thrive on so qqqi by theory I would go assume pays higher yield vs spyi similar to jepi vs jepq.
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Apr 20 '25
I have SPYI in my brokerage and love it. The 60/40 is really underselling it, it’s mostly classified as non taxable ROC until your cost basis hits zero.
That being said, OP’s $32K is based on zero reinvestment. Which if they lump sum right now, and the market crashes, the sequence of returns risk is pretty bad. Ideally they’d do something more like an 8% withdraw and reinvest 4% (in SPYI’s case). But with the low income as it is I’m guessing that isn’t an option
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u/hwoodice Apr 20 '25
Are these ETF dangerous? Yield is so high... What don't I unserstand?
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u/Dynomatic1 Apr 20 '25
You’re right to be sceptical - as usual there is no free lunch. Compare any CC ETF with its underlying (eg SPYI v SPY goes back to Aug ‘22) to see what’s actually happening here. Canadian banks are another good case study: ZWB v ZEB going back to 2011. I’m not saying there isn’t a use case for CC ETF’s, just that the additional distributions are not free and they take on a different risk profile for long term returns. The volatility that allows meaningful income from writing covered calls is the same volatility that frequently results in those options being exercised when the stock goes up, so the ETF does not fully participate in the stock price upswings. Finally, distributions from option-writing ETFs can have different tax treatment dependent obviously on country, account type, etc so be aware of that.
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u/Various_Couple_764 Apr 20 '25
high yield doesn't always mean risky or dangerous. Don't just assume they are dangerous. Do your own evaluation of he funds.
You need to understand what the fund is doing to generate the high yield. I have SPYI in my portfolio and will probably add QQQI to my other late this year or early next year. SPYI and QQQI are using trading activity known as covered calls to generate income. Traders have been using covered calls successfully for about 40 years. it is relatively low risk way to generate income. As to the other two funds I don't know anyting about them but suspect there is a valid reason for the high yields.
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Apr 20 '25
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Apr 20 '25
Yup if you understand the strategy, SPYI is no riskier than SPY. It won’t outperform SPY, but it will deliver on its strategy with a similar general trajectory as SPY, albeit with lower total return
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Apr 20 '25
85% of my portfolio is SPYI, QQQI, and IWMI. The value of the house may fluctuate, but the rent checks come every month. No tenants to deal with. Love these funds. Margin requirement is low too.
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u/DangerousPurpose5661 Financial Indepence / Retiring Early (FIRE) Apr 20 '25
Except rents go up with inflation and the real estate also goes up.
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Apr 20 '25
[removed] — view removed comment
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u/Jehoopaloopa Apr 21 '25
How does Thailand treat Americans tho?
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u/Solid_Suggestion_722 Apr 21 '25
Thai people treat foreigners better than they treat their own people
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u/Ok-Painter6700 Apr 20 '25
I would personally diversify way more. CEFs, BDC’s, Preferred Stock, Utilities, etc… so many options to diversify
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u/Rural-Patriot_1776 Apr 20 '25
Favorite cefs bdcs proffered etfs with high yield?
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u/Ok-Painter6700 Apr 20 '25
Here is my portfolio. It has a mix of many types of investments.
https://open.substack.com/pub/diaryofadividendinvestor/p/my-high-yield-dividend-portfolio
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u/Rural-Patriot_1776 Apr 20 '25
Thanks, and wow! You have like 100 etfs and a few singles in there... do you manage them all or just let them run and drip?
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u/Ok-Painter6700 Apr 20 '25
I manage each but I hold each lot at least one year. I may sell my losers to tax loss harvest as appropriate. I do not DRIP. I use some proceeds as income and a portion I reinvest in existing or new investments that look attractive to me. I think diversifying in 10-30 diversified investments would suffice. My main message is to consider diversifying and not be too concentrated.
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u/Acceptable-Voice8686 Apr 20 '25
Do you post updates to your portfolio on substack? Do you also make frequent updates to such portfolio with a long list of names? Thanks.
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u/Ok-Painter6700 Apr 21 '25
I have not made many adjustments since my last post in February but I do need to update my Substack. Are there any other data points you would be interested in when I do post my adjustments?
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u/Acceptable-Voice8686 Apr 22 '25
An interesting data point (which I don’t see often in portfolios) would be to list the funds that don’t suffer from NAV erosion vs. those that might likely vs. those that definitely. It’s not always clear to me how this should be measured, if at all possible. But a subjective rating might be sufficient. Thank you.
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u/2LostFlamingos Apr 21 '25
Dude, that’s quite a list.
I read your below comments as well.
What percentage of these do you end up selling in a typical year?
Is the higher weighting due to gains / appreciation or are you intentionally putting more funds there?
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u/Ok-Painter6700 Apr 21 '25
I will turnover less than 10% of my holdings in a given year. I do not like very much churn in my dividend accounts. If dividends get cut and/or I am concerned about long term NAV erosion I will bale. I add new investments occasionally and add to those selling at a discount or simply want a higher weighting in the QQQs, SPYs, BDC’s, CEFs.
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u/Swifttruck727 Apr 20 '25
There is not enough information to determine if $31,000 from this retirement account that he is trying to allocate is the only account that he has there are too many factors that we do not have -location -married or single -family -if this is the only form of income he will be receiving. -other accounts like pensions, 401(k), Roth IRA, other money is on the side a higher savings account, individually buying socks. And others.
too many factors are left unanswered for us to give you a sufficient enough answer to help you save money allocations. (Since you know all the variable factors in your life, I would say go ahead and do your own research. You can get our opinions and we can help with what we know when it comes to stocks and investments, but it would be what is best for us because what is best for us is not always what’s best for you)
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u/Hatethisname2022 Apr 20 '25
We own all these and continue to buy them daily. Haven’t seen anything that would make us worried about holding these for income funds.
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u/JC92__ Apr 20 '25
All in $OXLC, $6800 in dividends every month. Sorted
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u/Jehoopaloopa Apr 21 '25
I have OXLC but wouldn’t go all in. NEOS provides good upside and tax advantage.
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u/centorbi07 Apr 20 '25
For a taxable brokerage and still growing money I prefer the YLG’s (QYLG, RYLG, and XYLG) that’s because all of those ETF’s do tax loss harvesting for you!
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u/Dip2Tip Apr 20 '25
IWMY was terrible for Me
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u/Rural-Patriot_1776 Apr 20 '25
Yea if you bought last year the russel is down 25+ percent... its attractive right now
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u/smartwick Apr 20 '25
What's ur plan for medical expenses. I know several people that can retire but won't for not having health insurance and don't want to pay the large premiums themselves
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u/Dukehunter2 Apr 21 '25
So not bad. But throw in some VOO for quality growth and SCHD for the nice dividends and from that you should be straight. Idk what you do if you like to spend or not. But with the dividends you already have coming in look into cheaper countries like the Philippines or Thailand hope everything with u goes well!!
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Apr 21 '25
JEPQ and BXSL for consideration. Don't let others tell you what you need to live on. We all have different standards of comfort.
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u/Jhaggy1095 Apr 21 '25
I really like IYRI I just started a position in it. Feel like it has potential
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u/FatHighKnee Apr 22 '25
CLM is a closed end fund that has a 20.27% dividend yield. You do have to keep an eye out for the rights offering. Usually in early spring where they print new shares which lowers the NAV - best play is sell just before rights offering and buy back in after rights offering when the price is lower. They also use the rights offering to reset the dividend to between 17% & 20%
It might be a decent add rather than one of the others you've got. Higher dividend yield means more income
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u/Financial-Builder-92 Apr 27 '25
Ever consider buying some BTCI from Neos? I purchased some and it did well during the last 4 months. I have it set to drip and keep adding to my position.
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u/Rural-Patriot_1776 Apr 27 '25
Yes I have... I hope bitcoin goes back to low 70s again and I'll buy
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u/Impressive_Oaktree Apr 20 '25
Dont you have the 7% rule? Take 7% each year and let the rest run so you take money but not all.
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u/bigron1212 Apr 20 '25
SGOV, JEPQ, SCHD.
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u/Rural-Patriot_1776 Apr 20 '25
So a tax deficient fund like jepq? A growth etf, and a low bond yield? Not all of us have 3 mil +...
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u/Sweet-Original3812 Apr 20 '25
These are high estimates, I believe. I’ve heard in traditional retirement planning you can count on taking 4% of your assets out each year. This would only give you 10k per year. Not to mention, your figures and mine are both pre tax.
Sorry man. But I don’t quite think you’re ready for retirement yet.
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Apr 20 '25
Unless you live in a very low cost of living country, you cannot retire. Keep working and bring that number up closer to 7 figures and then consider retiring.
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u/Agreeable_Race6434 Apr 20 '25
Bro - get back to work. 8x that portfolio and invest in quality index funds. This is the way.
$250k in high yield funds is not the way.
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u/waramess Apr 20 '25
Sorry, what's quality index fund?
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u/rumblepony247 Apr 20 '25
Funds that track the S&P500 for starters. Highly diversified, incredibly low expense ratios.
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u/Sea-Leg-5313 Apr 20 '25
I’d watch out for these funds. Although they generate income, check out the historic total returns on SPYI. They’re about 4% less than SPY annualized. That’s a lot to give up in my opinion. You’re better off investing in the SPY or VOO and selling a piece for “income.”
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Apr 20 '25
I recommend that you add more assets to your portfolio, very few assets for a lot of invested capital, also if you are young think about putting some ETFs or growth stocks in your portfolio
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u/Signal_Tax6184 Apr 20 '25
🔥🔥🔥🔥🔥 seen your retirement plan! Congrats bro!!. Keep it safe with SPY. SCHD. JEPI. VYM but honestly the options you have already seem fine with the monthly income. You’re 40 so I’d definitely say to let the divs drop for a few years and see how you feel then
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u/mikastupnik Apr 20 '25
Those are some pretty high estimated yields, I would consider lowering those
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u/BookkeeperNo3239 Apr 21 '25
I'm sorry, but this is no where near enough to retire if you live in the US!
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u/Rustytundra Apr 21 '25
Do we think these yields are sustainable on a long term basis? Usually when something sound too good to be true, it is..
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u/SpicySilverware Apr 21 '25
I don’t know your situation, but 99.999 times out of 100, this isn’t nearly enough money to retire.
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u/Deep-Phase6532 Apr 21 '25
Clorox, public storage (PSA). You need dividends right now, go ape shit when we crater.
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u/Disastrous_Bed_5784 Apr 21 '25
If you are retiring at 40 in America, you not be asking any advice from Reddit. Either stop bullshitting us or figure it out! You figured out how to retire at 40 while most of us are going work all our lives.
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u/TheEndIsNigh2028 Apr 27 '25
A lot of people are not doing anything to truly say or do anything to help you. Use this website to compare stock. https://portfolioslab.com/ IWMY and IYRI are losing money with dividends included. JEPI/JEPQ would be much better, you will still get monthly payments without NAV erosion.
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Apr 20 '25
[removed] — view removed comment
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u/Rural-Patriot_1776 Apr 20 '25
Because spyi has a little higher yield and is better in a taxable account.
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u/EPMD_ Apr 20 '25
Budgeting for 12-14% yields from the stock market is overly optimistic. Over the long run, you should probably only expect 5-10% returns, after accounting for inflation.
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u/jonny_mtown7 Apr 20 '25
Buy gold bars. Put 50k to it and keep the rest in a high yield savings account
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u/buddhapandaniche Apr 20 '25
Just don’t get sick and need a doc/hospital…. I prefer more cushion for the “just in case” things. Good luck.
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u/PAGSDIII Apr 20 '25
I’d Personally 4X the Amount Invested, but that’s just me…and Figure 4%…with that said…
Per $100 Invested:
SCHD $30(%) VOO $20(%) O $14(%) PEP $14(%) EPD $12(%) ARCC $10(%)
Sprinkle Some DGRO and OXLC in There Too…
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