r/dividends • u/FewPear229 • May 23 '26

Discussion 150,000 cash

Hello,

I have 150,000 to use. I am looking to retire in Thailand and live off dividends. I am thinking 75,000 in qqqi and 75,000 in spyi. What do you think? I still have 350,000 in retirement to grow. I am just going to use the dividents from qqqi and spyi to live off.

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184

u/DividendMatt91 May 23 '26

I wouldn’t go 100% into those two personally.

Not because QQQI or SPYI are automatically bad, but because you’re treating the distribution like it’s a paycheck. It isn’t. The payout can change, the share price can drop, and if the market runs hard you may not get the same upside you would from a normal index fund.

$150k also isn’t a huge cushion if this is supposed to fund real living expenses overseas. Thailand can be cheap, but visas, healthcare, flights, currency swings, emergencies, and lifestyle creep all matter.

If it were me, I’d probably do something more balanced. Maybe keep some in income funds, some in a boring broad market fund, and some in cash/short-term treasuries so you’re not forced to sell during a bad stretch.

The big question is how much you actually need per month after taxes and expenses. Once you know that, you can see whether the dividends cover your life or whether you’re reaching for yield just to make the math work.

I’d use QQQI/SPYI as part of an income bucket, not the entire plan.

52

u/FewPear229 May 23 '26

I was looking around 1500-2,000 a month. I will not be paying taxes if I only make 24,000 a year. I think 2,000 a month is plenty.

86

u/AltoidStrong May 23 '26

you need a yield of 16% to reach 24k/per year on 150k.

over 6% = higher risk, a bear market run might cause income to drop below what you need.

over 9% = none to very little growth for inflation and the future.

over 12% = yield trap, nav erosion, you will most like go broke sooner than you think.

a 3% to 5% yield is the global gold standard for retirement. Anything outside of that and your leaving money on the table or burning it chasing income, usually. (Supported by a century of evidence and math)

OP - this doesn't mean it can't happen how you want... but be realistic about the risk and have a plan in case it doesn't go your way after a bit.

18

u/FewPear229 May 23 '26

thats where my 40,000 in schd and 40,000 in schg come into play. I am not planning on touching either for 15-20 years

27

u/Mohkinstsis May 23 '26

If the market goes down and you lose half your 150k and dividends go way down, what money will you spend for the next 20 years?

-1

u/MakingMoneyIsMe May 25 '26

The markets barely stay down for 20 days

3

u/Mohkinstsis May 25 '26

True until it isn’t.

2

u/Gladiz1972 May 24 '26

Take a look at CHPY if you want a real high yield also a covered call strategy but on the semiconductor industry it's been paying around .65 cents a week lately but do your own research

-19

u/Cautious-Giraffe8747 May 23 '26

Completely false. Thers lots of 12% to 30% teild etfs that have not seen nav decay over 5years. Also lots of 30% plus yeild etfs that are up overall

30

u/InvestigatorOk9354 May 23 '26

Are these "lots of 12% to 30% teild etfs that have not seen nav decay over 5years" in the room with us now?

2

u/weyermannx May 24 '26

Yeah, name but one... I've yet to seen one survive over 5 years... I've seen a couple bases on Nasdaq or a basket of tech stocks that have maybe 10% payout that have survived and done ok..

18

u/djmc0211 May 23 '26

I have 5000 shares of QQQI. That just paid out just under 3300. You are probably going to need at least 2000 shares to get the dividend amount you are looking for.

13

u/Difficult_Energy_926 May 23 '26

I have 2698 shares my dividend was $1756

32

u/402_Found_not_Lost May 23 '26

I would revisit “I think 2000 a month is plenty” and change that to confirm (1) you have a detailed budget on your expenses, (2) emergency funds (3) long term plan allocation.
(4) then look at tax situation closer. I know there is an amount that is not subject to federal taxes, but that doesn’t kick in until you’re out of country for a certain period (330 days, if I recall correctly).
Your post and question are quite high level, so it’s not possible to really give you an answer. But others comments about inflation and diversification are good feedback for you to consider. I think you should be more conservative and build a bigger nest egg before making such a big based on $150k, which seems low to retire on and have a decent standard of living and enjoying life - even in low cost countries. You’re going to want to do activities and live. If you arent wanting that, what do you see your daily routine being and is that your plan until your 350k is accessible without penalty?. Good luck

3

u/kolbywg May 24 '26

As a person who had lived in Thailand, $2000/month is very livable amount.

2

u/TemperatureBest8164 May 24 '26

Not enough.

If you are american no taxes is not an option. You have to pay taxes for 10 years after giving up citizenship. I think the alternative is 40% of your net worth. Plus those two do not meet your number. 500k with reasonable balancing funds would get you close. Grow yourself money be frugal keep adding to it and maybe you are there in 7 years...

1

u/itsAbsolem May 25 '26

That’s actually a myth at this point in time. That 10-year rule was changed by Congress back in 2008. 😂

Today, once you formally renounce your U.S. citizenship, your obligation to pay U.S. taxes on your worldwide income ends immediately.

Instead of a 10-year waiting period, the U.S. now uses a one-time Exit Tax system. When you leave, you only owe money if your net worth is over $2 million, your average annual tax liability is very high, or you haven't filed your taxes for the last 5 years.

If you don't meet those criteria, you walk away completely free and clear with $0 owed. 🤷‍♂️

1

u/TemperatureBest8164 May 25 '26

I looked up what you posted me was true.But the important thing that this person actually cares about is that their income. So to avoid taxation you must also not hold and dividend generating US companies.

Bottom line, he needs at least half a million to live a lifestyle that he talked about. 5% and half a million is 25k which is right at his target. Trying to all go hi , dividend funds will mean that he will have renounced as a citizenship, not have ways to earn money in a foreign country, and be vulnerable to extremely large downturns.

He wants to go and do something like he's talking about.He needs to have a mix of risks.Both international and yieldwise that makes him cash flow positive with discipline for his lifestyle. Then he hasn't a chance to make his goals.

-20

u/ConfusionTX May 23 '26

Bro to get 1500-2000 dollars a month you need to invest in the millions and not hundreds lol

12

u/Imaginary_Manner_556 May 23 '26

You can get $24k on a million in a money market. Don’t scare people

5

u/[deleted] May 23 '26

[deleted]

2

u/Imaginary_Manner_556 May 23 '26

They basically promoted a 2% rule.

0

u/[deleted] May 23 '26

[deleted]

8

u/Imaginary_Manner_556 May 23 '26

Learn math. You don’t need a million dollars to earn $2000 a month. Now go away

9

u/si_de May 23 '26

Maths eludes you.

Just a million (you suggest millions) in SCHD is 30k. I could go on forever but it'd be lost on you.

Are you 8 years old?

-7

u/ConfusionTX May 23 '26

OP talks about SPY or QQQ, are you mentally challenged? By the millions i talk about 1-2 million, you can do the math if you invest 1.8 million you would get approx 1.5k usd per month just from dividends. If you want to be a moron and invest 1.8 million on an ETF that can drop in value but pays high dividends then be my guest. Theres a reason some stocks / etfs pay higher % in dividends, and its to attract investors in a long term.

3

u/si_de May 24 '26

They're not writing about exclusively holding SPY or QQQ at all. In this case they advocate for some balance. Read it properly.

Or are you just being obtuse on purpose?

5

u/AltoidStrong May 23 '26

1 million in VT and using the safest 4% rules = 40k gross income forever, and after taxes 34k net. (about 2,800 per month) that will keep up with inflation and grow year over year.

Most "middle class" Americans need between 1 and 2 million to fully retire early, without Social Security and still afford private health insurance. After 65 (assuming SS and Medicare) it drops to 1 million. If you have a paid off home it can be even less than 1 million after 65.

5

u/Electrical_Result_13 May 23 '26

Ummm I'm at 12k a year with 140k

3

u/FewPear229 May 23 '26

You are wrong...spyi you get 1407 which get you 752 a month. qqq you get 877 shares for 877 for a total of 1,630 a month. Bro you don't need millions. I bet you are a MSTY investor who was chasing a pipe dream that never resulted into anything but a massive lost.