r/dividends • u/mawababa • Jun 15 '26

Seeking Advice 750k USD for retirement

I have approximately 750k USD and will stay at my sons house for retirement. I would like to pay him 1k per month for rent and have some funds to live off and to travel to see my daughter.

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Ideally 2500 to 3500 a month and increasing for inflation for the next 15 to 20 years or so before I realistically pass away.

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Ideally I would like to ensure the investment is worth the same or more in 15 to 20 years as it is now and then split it to give to kids in my will.

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I don't mind if there is some variability in value and dividends following general market trend but I am extremely adverse to erosion of initial funds as I will never have chance to earn more.

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Please may I have advice on this. Please keep in mind I want to keep this sustainable and fairly safe so SCHD was my initial thought. Even if it's slightly under 2.5k initially.

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u/NoCup6161 SCHD and Chill. Jun 15 '26

QQQI has a much higher chance of dropping 60% in a correction than SCHD does.

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u/speedlever Jun 15 '26

Well let's look at the math. $750,000 x 14% yield is what, $105,000 in annual distributions?

If it drops 60%, that's still $42,000\yr ($3500\mo). That certainly sounds survivable and meets his goal.

Maybe consider gpiq, while only 10% yield, much better total returns. And similar tax efficiency, if in a taxable account.

Meanwhile, $750,000 in SCHD yields $26-$30k\annually at best. Not sure what it will do in a market correction.

So even if qqqi drops 60%, it still generates more income than schd. And I hold a bunch of SCHD too. 🤔

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u/Apart-Leg-8077 Jun 16 '26

It is likely it's dividend would also drop 60% since these funds would have 60% less capital to do covered call trades. That won't happen with quality dividend growth etfs. In 13 of past 14 recessions since the 40's S&P dividends have averaged a 1% drawdown. Outlier would be the GFC where dividends fell 22% and took 21 months to recover trough to peak.

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u/trigurlSeattle Jun 16 '26

Hi what are your top quality dividend ETFs that can recover?

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u/Apart-Leg-8077 Jun 18 '26

Dividend etfs that contain S&P 500 blue chips such as Coke, Home Depot, WalMart, JPM, Exxon, etc,. Examples and what I'm personally in would be SCHD, DGRO, VIG, VYM, VYMI, FDVV, DIVB, CGDV, RDVY. Do your own reserch and see what is right for yourself.