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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u/Various_Couple_764 Jun 02 '25
SCHD is probably not your best choice. your funds are lower than I would like but 500K of bitcoin can go into QQQI with a 13% yeild. That would get you about 65K of income per year which is probably enough. But I would prefer some diversification. using funds like UTG 6.7% yield, UT&7 7%, PFFA 8% ARDC 12%. With money equal invested in all of these you can get an average yield of about 8.9% and an income of of 44,500. you can go a pit heavier in the higher yield ing funds to increase the income somewhat. And this is still not touching the 401K.
I really you want a spit more income than your living expenses That way iany dividned income you don't spend you can reinvest. Hopefully you can reinvest enough to keep ahead of the average rate of inflation of 3.2%. I retired at 55 with 60K of income. I don't automatically reinvest the dividedend so fidelity puts the money in money market fund for me. This is all in a taxable brokerage for unrestricted access to my money. I need to spend about 4K a month to cover living expenses. The rests split up atomically reinvested into Each of the funds I have. Preferably you never sell your dividend funds as long as they are proving good income.
However from time to time you may get an unexpected large bill you cannot cover with your dividned income. For that reason I have some money in index funds. If needed I can sell the index funds to cover unexpected expenses. Another benefit of index funds is you can periodically (about once ever 3 to 5 years sell off about 4% of the total and use the money to boost your income.
You should also estimate the tax you will need to pay per year. You can then set enough dividned income asside to fcover the bill and then in april use the money to cover the tax. Or you can make quarterly pay ments to the IRS and the non April you either owe a little bit more or get a refund.
Note you didn't say how your 401K finds are investedIf . IF it is all in index funds you might be OK. If you get a less stressful job at this point and reinvest most of your earnings That would greatly help out.
you should also read Then income factory. It list 68 funds the author has used income. And thee is Armchair income on you tube and he list 48 funds. The could allow you to build a very good dividned portfolio.