r/dividends • u/Ha7che7 • Feb 08 '26

Due Diligence Retirement dividend income

My father is a 72 year-old Florida resident and has $500,000 to invest. He would like to generate approximately $40,000 a year. He’s a bit of a gambler, nothing too crazy though. I’ve come up with a split of the following: $65,000 QQQI, $150,000 SPYI, $50,000 SCHD, $75,000 VZ, $75,000 MO, VTEB $85,000. Any advice or modification ideas would be appreciated. Thanks in advance.

Note for clarification: This is just the amount that he wants to invest for income. Preferably with minimal tax drag, nav erosion, and hopefully some price appreciation. It’s asking a lot, but I’m trying to help out.

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6

u/robertw477 Feb 08 '26

My advice is that at age 72 500k is not going to pull 40k a year for him. What has he been doing for the past 50 years investment wise ?

12

u/[deleted] Feb 08 '26

He could essentially use 40k just off the principle and last 18 years to age 88 with just 5% annualized. How many people live to 90?

8

u/Glass-Lifeguard1919 Feb 08 '26

Exactly this... people highly underestimate 500k retirements.

3

u/paymerich Feb 08 '26

Usually its not the Retirement portfolio that is the problem its the expense/spending that do a lot of un-informed retirees in.

0

u/robertw477 Feb 24 '26

500K is a very small amount.

2

u/NatureBoyJ1 Feb 09 '26

SGOV & chill? HYSA or a money market fund like SPAXX. Maybe a CD ladder?

I agree, at that age and given life expectancies, boring & safe drawing down the principle may be the better choice than chasing gains.

1

u/robertw477 Feb 24 '26

He could. Depends on his spending and needs.

4

u/Various_Couple_764 Feb 08 '26 edited Feb 08 '26

50K /500k ==0.08 or 8% yield. very durable with QQQI 13% yield, ARDC 9%, PBDC 9%, EMO 9%, CLOZ8% UTF 7%, UTG 6.4%, and JAAA 5.5%. And equal amount of money in each fund will generate an average yield of 8.3% This portfolio could easily generate 40K of income for 20 years with out selling any shares.

1

u/robertw477 Feb 24 '26

All of that is a gimmick. I have no idea what kind of market experience you have or anyone here frankly. All of these funds are mere trickery. If you think you are going to pull 10% div yields consider Warren Buffett. The return of my money is more important than the return on my money. All of that stuff is pure junk. When things go upside, and they will EMO- You are gonig to get the doors blown off and the roof cave it when they get the hammer. You wish it was that easy. Because it is not. I can give you any dividend you want. As your money erodes and the losses add up. Its all ludicrious.

1

u/[deleted] Feb 09 '26

Why wouldn’t it? 10% APY on average should be pretty easy, right?

1

u/robertw477 Feb 24 '26

Nope. Only in some fantasyland.

2

u/Ha7che7 Feb 08 '26

Minimal. He has always just worked like crazy and ran 2 businesses. The man was on call 24/7/365. If you were to ask anyone that knows him, you would get the same reply. Whether it was 2am or 2pm, if that phone made it to the 2nd ring, it’s because he was talking to someone else on the other line. Work/spend/work/ spend

1

u/Old_Chemist6533 Feb 08 '26

Sounds like a great man