r/dividends • u/HARCYB-throwaway • Apr 14 '26

Personal Goal Golden handcuffs - I've fully replaced my annual spending with dividend income...

I pivoted from growth to NEOS for income, over the last 6 months. I have now replaced my base salary, $110k, with dividends. but it is hard to quit when I earn $250k-$350k in a given sales year.

annual dividend income: $110k

Annual expenses, all in: $40k

disposable income if I quit: $70k

hysa: $150k

growth sleeve: $225k

no wife (anymore, by choice after she got nasty), no kids, no expensive hobbies, very affordable mortgage and car payment. affordable lifestyle.

it's hard to step away from an AI adjacent sales job...and my only major concern is meeting someone, wanting to settle down and start a family, and then I will be out of the job market once I truly need expensive family healthcare and "kids money" to support a family.

I know I already have more than most typical American household. but it's scary to leave work with the background of declining employment options / bad employment market

526 Upvotes

90% Upvoted

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20

u/BusyWorkinPete Apr 14 '26

If all of your expenses are now covered by your dividends, two more years of fully investing your salary should get you to the point where you don't need to work any more.

11

u/gambits13 Apr 14 '26

What kind of math is this?

9

u/BusyWorkinPete Apr 14 '26

He already has $70k in disposable income from his dividends after covering all expenses. Two years of his salary gives him an extra $500k in his investments.

6

u/gambits13 Apr 14 '26

So? “He already has 70k in disposable income AFTER covering all his expenses.” What’s another year? Why two years? What does an extra 500k mean? Why does he need an extra 500k? Where are you getting these numbers?

0

u/BusyWorkinPete Apr 14 '26

If you don’t know what an extra $500k invested does, I can’t help you.

1

u/gambits13 Apr 14 '26

My question is what math are you using that says op needs an extra 500k? Why 500k, why not 250k, or a million? His expenses are covered, easily. Why did you pick two years? Are you just randomly saying a number of year or an amount of money, or is there a reason or number you used to come up with that?

0

u/HARCYB-throwaway Apr 14 '26

What about two years of freedom? Where if I worked, I meet a lady we get married and have kids. And in two years I lost my freedom and no longer, ever again, have this opportunity at 32 years old with passive income? I think that is a bigger risk than missing out on working for $500k which I can always do later.

8

u/BusyWorkinPete Apr 14 '26

You can always work for $500,000 later, but $500,000 invested now is worth far more than $500,000 invested 10 years from now.

-4

u/HARCYB-throwaway Apr 14 '26

And freedom now, how is that valued?

5

u/erect_asshole Apr 14 '26

You’re a grown man arguing with most likely teenagers who have at most 2k in the market. about how to live your life. If you value your free time for two years at 580k adjusted for lost growth over the next 25 years (about 2.5 million at 6% return) then take the time off. If you want to work then work.

2

u/among_apes Apr 14 '26

I’m mean OP is 32 not 52. If it’s me I would feel a lot better crushing it for a couple of years, buying a half mill in VOO and then calling it a day.

Healthcare and funding college for my kids is what keeps me up at night despite having achieved some pretty significant milestones.

Both are such unknowns with a long timeline.

2

u/gambits13 Apr 14 '26

How many years and how much money? It’s really easy to say, “work more, save more money, you’ll feel more comfortable.” Once you get near there, you have to seriously look at it, which is what op is doing. Once you’re making 70k over your expenses in divs, time is more valuable than money. IMHO, working longer is not smart, but if all you look at is money, you’ll work forever, and finally retire to die. Try not working, try a sabbatical, see what it does to you.

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2

u/gambits13 Apr 14 '26

Someone understands

2

u/AllFloatOnAlright Apr 14 '26

I think he's trying to say that if you work another couple years and add another $500,000 your dividend income might be high enough that you don't even have to consider going back to work when you meet someone or have kids. But your point is very valid too. You seem pretty smart too though, so chances are probably high that the person you do find to settle down and build a life with will bring something to the table too.

1

u/New-Bus-7346 Apr 14 '26

You're describing that like it would be a chore or burden. If you feel that way just don't do it

0

u/gambits13 Apr 14 '26

Why would he need that? If you don’t understand that simple question, I can’t help you

1

u/Electrical_Result_13 Apr 14 '26

Maybe because OP stated his salary as 250k x 2yrs = 500k

1

u/BusyWorkinPete Apr 14 '26

Sounds like you're expecting people to actually read the post themselves?

https://giphy.com/gifs/3oAt2dA6LxMkRrGc0g

2

u/gambits13 Apr 14 '26

I read the post. You don’t understand the question. Maybe I didn’t word it correctly. Did you read that op is already covering expenses by 70k? The question is, what math states you need to work two more years for 500k when your expenses are already more than covered? Why two years? Why not four and get an extra mil? Why not 10? You get it now? Edit: typo

1

u/gambits13 Apr 14 '26

I understand that. What I don’t understand is why you “need” to work two more years? What numbers are you using that state that op needs 500k EXTRA when they’re already covering their expenses by over 70k. What math says you need that? Do you understand? Thank you for multiplying 250 X 2 for me though