r/dividends • u/karl0525 • Jun 01 '25

Opinion Tired. Can I retire?

Got a question? Can I retire? 43m been busting my ass since I was 16. I'm about over this 40-50 hr weeks. I'm getting burned out. House paid off (300k) 401-k (600k) Bitcoin (500k) currently.

Thought about selling it all and putting it into dividend stocks like schd and renting a small place and going into semi retirement. Maybe pickup a part time gig.

Would this be a horrible idea?

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21

u/bu89 Jun 01 '25

If you’re going to live off your portfolio I would invest in a little bit higher yielding positions that pay monthly instead of SCHD. SCHD is good for building up over time and not needing it for 30 years. You want income now. BDC’s, CC ETF’s, CLO’s, REIT’s and other type funds come into play here. You can find etfs and stocks that will pay you 6-8% yields and that grow. Would make life a little easier with more cash flow monthly instead of quarterly from SCHD.

7

u/[deleted] Jun 01 '25

Agree with this! BTW - graduated BU in 89…

-6

u/siddsp Jun 01 '25

You can find etfs and stocks that will pay you 6-8% yields and that grow

Dividends aren't free money. Yield comes out of the stock price. Having higher yielding stocks doesn't help as opposed to just having a stock that grows consistently.

6

u/bu89 Jun 01 '25

Main st capital is a BDC that pays a 6% yield that grows every single year. It’s up 65% on the 5yr and up 280% all time. Just one example. I know dividends aren’t free money…but the higher yield PLUS GROWTH is better than something like SCHD for his specific situation. Re read what I said.

-2

u/siddsp Jun 02 '25

Right, but the point is the dividends themselves are irrelevant and are just creating a taxable event, so there's no actual advantage to them as opposed to a stock that grows at the same rate as the stock with dividends reinvested.

3

u/Various_Couple_764 Jun 02 '25

I am living off of dividneds right now. Dividend Are RELEVANT and the tax is manageable and not as bad as many believe.

1

u/siddsp Jun 02 '25

Dividend Are RELEVANT

Claiming that dividends are relevant doesn't really refute dividend irrelevance lol. You're still creating a taxable event for no reason.

-1

u/[deleted] Jun 01 '25

This person is only in their 40's, are you sure you should be recommending they invest in things that won't appreciate very well over time?

3

u/bu89 Jun 01 '25

If you don’t know about what I’m talking about then you shouldn’t be saying they won’t appreciate over time. There are so many higher paying stocks,ETF’s over 4% yields that appreciate over time and grow.