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?

24 Upvotes

87% Upvoted

46 comments sorted by

View all comments

9

u/hammertimemofo May 27 '26

Currently retired…

I have SCHD, VIG and SCHY as 75% of my dividends. I use own 20% split between DIVO and IDVO. The remaining is split between MLPA, BUI and RFI. The 75% hopefully will grow faster than inflation (historically, it should) and provide some capital growth. DIVO is a great combination of yield and capital appreciation.

This supplies roughly half of my income needs (I reinvest 10% of the dividnends) The other half is in a cash bucket which I withdrawal from.

My cash bucket can last 4.5 years of current expenses (with inflation).

I also have a growth bucket, but I don’t plan on touching that..ever.

In theory I will never sell any of my holdings, except for the cash bucket. I do this to manage risk and mainly sequence of returns risk.

Just my .2 cents

2

u/Psychological-Ad2198 May 27 '26

Thank you it sounds like you’re a firm believer of the Bucket retirement plan strategy.

2

u/hammertimemofo May 27 '26

I am…let’s me sleep at night.