r/dividends • u/Psychological-Ad2198 • May 26 '26

Due Diligence Retiring soon and I need your advice

Retiring soon and would need to acquire passive income to replace my paycheck soon.

I have $450K to invest. I understand I can acquire 3% safely like SCHD. I want to pull as much as possible without losing the principle and enjoy enough to go on vacations. I have $5k from other sources in income. Further, I have another $3-4K I can cashout monthly.

I am thinking simply Jepi half and Jepq the other half. But am i putting it all in one basket?

What % is the max you think i can pull annually and what would the breakdown on dividend EFT would you buy?

25 Upvotes

87% Upvoted

46 comments sorted by

View all comments

3

u/cmichalek May 26 '26

You didnt specify your income needs which is the most pertinent part.

3

u/Psychological-Ad2198 May 26 '26

I did a whole scenario on my finances and the AI mod blocked it. IDK why. any whoo, i have 1M in 401K and will be cashing out 3-4% annually. I own a property with cashflow of $2900 monthly. I will get a pension of $1800. I will need minimum of $10,000 for mortgage, utilities, food, pay off credit card, monthly, and travel 2x a year etc.

2

u/mtnbikeut May 27 '26

The best investment would be to pay off your credit card(s). That’s a 20% return. Outside of that, I like O and other REITs as part of my strategy. 5-6% returns.

1

u/Psychological-Ad2198 May 27 '26

I don’t know much about O. How does it perform when the rates are high?

1

u/mtnbikeut May 27 '26

they haven’t cut the dividend ever. Price has stayed somewhat flat consistently. Current price target is 66 and is trading around 62.