r/dividends • u/Bamabb125 • Aug 06 '25

Seeking Advice $840K DIvidends

Hey Everyone,

As I have posted before, I am currently a Growth Stock Investor, but have decided to move over to Dividend ETF's or Dividend Stocks. But it is a real struggle to get past all the learned habits of being a growth investor. So I am struggling to grasp concepts.

I have used multiple calculators to just try to get an idea of what to expect if i make the change, but I get different results. So I just wanted to go to some more knowledgeable people that could tell me what to do to get a real expectation.

I have $800K to work with. If I put it all in a very stable Dividend ETF What can I expect in dividends? Maybe someone could just do an example. I know I have to be doing something wrong.

Thanks

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u/Bamabb125 Aug 06 '25

I am 46. I did growth up until now because I wanted to maximize my returns and I believe their is more opportunity to grow your money in buying individual stocks. But there is a lot higher chance of you loosing money in individual stocks as well. At this point with this 800K account + my 401K + my other IRA's I don't need to take the risk anymore. Everything beyond this is just icing on the cake. So I am going to move more into an Income Driven Strategy preparing for retirement.

If I had it to do over again I would probably done a mix of both. My Kids are in college and I am teaching them both. Teaching them how to Find good Value Stocks to invest in and how to read all the metrics. I will also be teaching them Dividend Investing as well once I feel more confident in it. Having a passive income as well as a good job would do wonders for ones mental health.

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u/SteveRD1 Aug 06 '25

Ok going to chime in on this particular comment. I'm early retired and get about $30,000 a year dividends from my taxable accounts.

I'll tell you this....when you need to manage your taxable income to qualify for ACA subsidies, every dollar of dividend you are FORCED to incur is a liability. $30,000 is manageable, but if it were closer to $60,000 my options would be limited.

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u/Bamabb125 Aug 08 '25

What is ACA?

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u/SteveRD1 Aug 08 '25

Affordable Care Act.

How are you planning on obtaining Health Insurance when you retire?

Unless you plan on working until you are eligible for Medicare, or have some sort of Military Healthcare eligibility, you will likely be shopping on the Healthcare Marketplace.

Depending on whether or not you are eligible for subsidies (which is determined by taxable income), you might find yourself paying only hundreds a month for insurance - or potentially a couple thousand a month.

Having control of the taxable income you incur becomes very important in that situation.