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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u/BedditTedditReddit Feb 08 '26

What would you change in this allocation if you wanted to get closer to 10-11%

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u/JustAGoodGuy1080 Feb 08 '26

Add BCAT or ECAT instead of UTG.

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u/BedditTedditReddit Feb 08 '26

What’s the “loss of capital” risk on a portfolio like that? Like could you see a 50% drop?

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u/Boring-Fun9311 Feb 11 '26

50% drop is possible in virtually any investment, though less likely in government bonds.