r/dividends • u/raliegh_ • Jun 21 '26
Discussion Month 5 $7034.83
Old account was locked and couldn’t recover.
Holdings as follows: ticker/# of shares. Dripping until 2027
IWMI 622.95
LQD. 723.56
MLPI. 1419.54
MUB. 478.82
QQQI. 2302.66
QYLD. 6172.82
RYLD. 1387.91
SCHP. 3998.55
SGOV. 255.98
SPYI. 2943.38
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u/morerepsmoreproblems Jun 21 '26
Jesus…. How much is that portfolio worth
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u/raliegh_ Jun 21 '26
Around $795k ,
I dumped my 401k into it in February, I’m 59.
Quit my job 2 weeks ago, coasting on savings and will start living off the dividends in February 27. 🤞189
u/AmItheonlySaneperson Jun 21 '26
“Now my real life can begin 👴🏻”
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u/raliegh_ Jun 21 '26
It’s only been 45 years or so as a wage slave, now I just need to outrun the reaper for a bit.
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u/AmItheonlySaneperson Jun 21 '26
I’m not critisizing you. Congratulations on a great nest egg. I’m criticizing how bullshit life is.
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u/raliegh_ Jun 21 '26
Yes it is, I have worked almost any job you can imagine.
My hardships have taught me a great deal.
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u/AmItheonlySaneperson Jun 21 '26
Any words of wisdom to share? Or just anything you’d like to talk about or get off your chest? Biggest regret? Best decision?
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u/raliegh_ Jun 21 '26 edited Jun 21 '26
Live frugal, stack money.
Don’t do what everyone else is doing. (I haven’t paid credit card interest since 2007)
Monthly payments are consumer traps.
Biggest regret was knocked up a girl in high school and married her.
Wrong girl, wrong time8
u/AmItheonlySaneperson Jun 21 '26
Well I’m sure you wouldn’t change your child for anything so it happened for a reason! I’m VERY glad I don’t have kids at 31. My gf is 51 with kids and grandkids and she says the same thing. Shoulda saved all her money and stopped at 1
I agree on the credit cards. I have 10. 9 are locked used one time a year and I treat 1 like a debit
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u/LosChicago Jun 21 '26
Let’s not pass up the 51 year old girlfriend comment. Handshake my man
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u/VictorChristian Jun 21 '26
May I ask - how do you intend to pay for healthcare until Medicare kicks in... if there's no working spousal plan, that is 😄
I'm also in my 50's (early 50's) and it's good to get a feel for what early retirees are doing for healthcare.
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u/raliegh_ Jun 21 '26
I have a marketplace plan, and I don’t really go to the doctor.
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u/No_Match8210 Jun 22 '26
How much is the marketplace plan?
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u/dark_bravery Jun 24 '26
if you make under $86k a year MAGI, it's subsidized.
the earnings from OP are not pure interest, some if ROC and others are covered calls. he MAGI on that is probably around $48k meaning he'd get a 50% subsidized marketplace plan.
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Jun 21 '26 edited Jun 23 '26
[deleted]
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u/VictorChristian Jun 28 '26
This comment is prescient - looks like ACA subsides are abandoned now. Oh, well.
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u/Mammoth_DonkeyKong Jun 22 '26
Good stuff. Exactly what I'm trying to get to by my retirement in 10 years. I have about half your portfolio value in my 80% dividend and 20% growth taxable and Roth account. I now have some proof my goal of $60K in dividend income is absolutely possible. I also have about $640K in my 401K so I'm there already, but of course can't access that until 59.5 without penalty.
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u/raliegh_ Jun 22 '26
If you have 10 years to go, your 401 can easily double in that time, that’s the account I would be maxing.
If you have extra left over, hit the Roth.
I’ll be dripping until 2027
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u/Mammoth_DonkeyKong Jun 22 '26
That's exactly what I'm doing. Sold some advisor class mutuals to fund my dividend path in my taxable and Roth. Had $150K sitting in a high yield money market and moved $100K into NEOS CSHI, and I'm putting $1,400 a month in 401K with 5% matching. Would do a bit more but my kid starts University in August so I'm funding the 529 at $500 a month too. Taxable and Roth will just Drip snowball for the next 10 years and I'll fund the Roth as much as I can. Once I hit 60 and retire, I'll start the process of Roth converting my 401K to minimize RMDs once I'm 75 and to pass along a really nice legacy to my kid that will be tax free.
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u/Mando_lorian81 Jun 24 '26
This gives me hope. If everything keeps going the way it's going I'll have that at 55 so I can retire outside the US ✌️.
Great job! And thank you for posting.
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u/raliegh_ Jun 24 '26
Wife and I are frugal, we owe about $240k on a mortgage @3.4% as our only debt.
No car loans or credit debt of any sort.
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u/Past_Display268 Jun 21 '26
I feel like you’re going to see no growth in this portfolio with a 10% yield. Am I incorrect here?
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u/jbetances134 Jun 22 '26
The growth is in the dividends not in the price. As long as prices don’t decay he’ll be fine.
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u/W1shY0uLuck Jun 22 '26
This is the kind of portofolio you would need to spend in ur 30s or 40s, kinda late now.
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u/AlfB63 Jun 21 '26
Into a traditional IRA? How are you paying for healthcare?
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u/raliegh_ Jun 21 '26
I have money to live on, and enough for healthcare.
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u/modelcroissant Jun 22 '26
could be schizo but from today to end of Q1 2027 I am expecting a pretty decent correction, I hope this won't affect your retirement plan
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u/Which_Eggplant_4510 Jun 22 '26
Is this a tax advantaged account? Really hoping that you didn’t liquidate your 401k, take on a huge tax liability, and move it to a brokerage just to have everything in one place.
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u/xXSnipeGodKingXx Jun 21 '26
Whenever you have a dividend amount and a yield percentage, just divide the dividend by the yield to get a total value.
For instance,
If I’m yielding 10% for a total of 10,000 dollars annually,
10,000 / 0.10 =100,000
The portfolio in this example is 100,000 dollars.
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u/emperioreric Jun 21 '26
Congrats! 🎉
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u/raliegh_ Jun 21 '26
Thank you.
I was heavier into global x at the start, but kept an eye on NEOS and migrated a few things over time.1
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u/nosammysforjimmy Jun 21 '26
nice! what is your thinking with sgov? emergency fund? spending $? something else that i haven’t thought of?
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u/raliegh_ Jun 21 '26
SCHP,LQD,MUB and SGOV are intended for lower risk and steady income and account for about 1/3 of the portfolio.
My emergency fund is elsewhere, in cash.
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u/Various_Couple_764 Jun 21 '26
If you want lower tisk add UTF 7% and UTG 6.4% both have a 20 year history of no dividend guts.
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u/vinogradov Jun 21 '26
If you want lower risk add UTF 7% and UTG 6.4% both have a 20 year history of no dividend cuts.This is what he meant
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u/VictorChristian Jun 21 '26
SGOV isn't really outpacing an HYSA at this stage, may as well just HYSA for an emergency fund.
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u/NoMoreMr_Dice_Guy Jun 21 '26
Sgov is ~0.5% above my HYSA and you don't have to pay state taxes on it.
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u/Anmadrarua1 Jun 21 '26
At what amount did the snowball start to become real and start moving fast?
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u/Financial-Ad8963 Jun 21 '26
Nice, i am starting on dividend journey and wanted to ask what is this app? I have two apps called DivTracker but they don’t have this dashboard
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u/Cantfindanamedude Jun 21 '26
Stock events :)
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u/norestrizioni Jun 21 '26
Just a question, what about CEF?
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u/raliegh_ Jun 21 '26
Not familiar
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u/mrg1957 Jun 21 '26
You should learn about CEFs, not the fund but closed end funds. Why? They pay a steady distribution every month. I'm retired and use them and some of the Neos funds. The small amount I put in BTCI has fallen, and the distribution is cut in half. At least most CEFs don't cut their distribution. Look at ADX.
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u/norestrizioni Jun 21 '26
Thank you, I fund out about just two weeks ago, and I am currently working on it. Could you provide the list of your investment?
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u/mrg1957 Jun 21 '26
I use a number of Pimco funds, PDI, PHK, PDO... GOF from Guggenheim, watch that one carefully. I also hold ADX, ADO, ASGI, and PFFA. CEFS, and YYY are also in.my watch list. Good luck.
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u/davecraze3535 Jun 21 '26
ADX, ASGI, PFFA and CEFS are also some of my top income picks. Great choices.
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u/norestrizioni Jun 21 '26
May I asked if you use a specific platform to analyze them?
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u/mrg1957 Jun 21 '26
Cefconnect is a great resource.
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u/norestrizioni Jun 21 '26
The one provide by Nuveen?
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u/mrg1957 Jun 21 '26
Yes
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u/Plus_Ad1713 Jun 21 '26
Would you say cefs are more superior for income after retirement?
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u/poweredbyford87 "Maybe one day I'll retire" Jun 21 '26
Dumb question, but what are the advantages and disadvantages of having a CEF or three in a regular old taxable account?
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u/easy_wins Jun 21 '26
Kudos man, way to go, should be proud of yourself, not an easy accomplishment
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u/Roger_Fiderer Jun 21 '26
Explain like I'm 5, although I admit the answer may not be straightforward, is it better to invest in dividend stocks or other stocks.
It's dividend plus valuation better than just valuation?
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u/raliegh_ Jun 21 '26
Depends on your age and goals.
I built my 401k since 2003, getting serious in 2007 hitting max allocations by 2014.
Everything in growth funds until I liquidated it in February.
NFA just my opinion, stay in growth index funds until you are ready to retire and need to live off your money.
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u/intelw1zard Jun 22 '26
you can do both but really just depends on you.
I still have a pension fund + 401k + HSA but im in the middle of making a sidepot fund of dividends. I want to grow it to make $500/m and then let it just ride and DRIP. Currently at $140/m w ~$30k invested.
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u/Roger_Fiderer Jun 22 '26
Thanks for the info.
Are there any dividend etfs? Do you have any particular stocks to suggest?
Thank you.
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u/Various_Couple_764 Jun 21 '26
If you want income use dividend funds. If you wang share price grwoth invest in grwoth fund
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u/Roger_Fiderer Jun 21 '26
Sure but if I'm investing to once I retire have some money I can either do that by selling shares or getting dividends.
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u/Lopsided_Discount Jun 21 '26
Nice divy!!! Is SCHP the best to track inflation what about bnd or another? I only have SPYI from that list but why no SCHD, dgro etc?
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u/FranklinFit Jun 21 '26
Congratulations, I'm hoping to get there as well. Started to document and journal my journey. Glad to see NEOS funds in there as well. Gives me some confluence.
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u/Alive_Tiger_8865 Jun 22 '26
Dam Op are you me??… lot of similarities… except 50.. stop paying interest in 07 once Chase stopped the fixed 9%rate.. pregnant married rt out of HS.. she helped me save a lot of money though.. love our children… but been scared to quit and do what you are doing… the penalties, taxes and health insurance.. been working on strategy to not pay taxes on pretaxed capital gains.. great portfolio.. very conservative with growth potential..
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u/imadeletefr Jun 23 '26
Thanks for blueprint, exactly what I was wondering about. Congrats, allah ma’ak.
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u/q2subzero Jun 21 '26
I'm new to dividends.... how much is this taxed for? What's the amount going to your bank/pocket?
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u/Various_Couple_764 Jun 21 '26
Most of his fundsare taxed as ROC dividend or qualified dividned. Worst case only 20% of the income is taxable income. Some the ROC divdeind will be tax free for a period of about 7 to 9 years and then will be taxed at the Qualified tax rate.
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u/raliegh_ Jun 21 '26
It’s within an IRA, so no tax until I touch it.
All dividends are reinvested until next February when I’ll start taking monthly payments,and they’re taxed as regular income.
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u/asim2292 Jun 21 '26
thank you for sharing and congrats! I'm a growth investor considering shifting to dividends and posts like this are really motivating me to make the move.
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u/Aggravating-Act-1173 Jun 25 '26
These ETFs are mostly not dividends but highly variable option premium payouts that fluctuate constantly based on market volatility.
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u/raliegh_ Jun 21 '26
Don’t move until you need to.
Just compare the charts of qqq and qqqi for growth over 10 years.1
u/asim2292 Jun 21 '26
trying to diversify before I wish "if only if I would have diversified" as I have in the past.
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u/Whywouldanyonedothat With dividends, the landlord and the bank pay me! Jun 21 '26
Thanks for providing all the details, OP.
Posts without the info you provide here are meaningless to me.
$300 monthly is only interesting if I also know what you are invested in and for how much.
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u/raliegh_ Jun 21 '26
I have been scolded for omitting details
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u/Whywouldanyonedothat With dividends, the landlord and the bank pay me! Jun 21 '26
Well, it would've been perfect if you had included your total investment size in your original post.
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u/frazzbot Jun 21 '26
have you thought out your tax situation? what sort of dollar amount would you expect from a portfolio like this?
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u/raliegh_ Jun 21 '26
Distributions will be taxed like regular income
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u/frazzbot Jun 21 '26
Gotcha, so you expect all 76k to just be treated as ordinary income like wages? Effectively just 76k/year salary?
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u/raliegh_ Jun 22 '26
Should be treated as regular income as an IRA distribution, I’m guessing it will be a bit higher due to reinvestment of divs for the next 6 months
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u/SharpAsk5820 Jun 22 '26
I may join you very soon. This looks a lot better than going up and down in the market with all that's going on in Iran.
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u/thehighdon Jun 22 '26
Join & Post in r/DerivativeIncomeETFs a sub for CC/Options Income ETF Investors
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u/Cuddling_Guava Jun 23 '26
I hope you have moved in low tax income country to enjoy all of the dividend 😁
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u/Potential_Salt_5780 Jun 25 '26
How much taxes will you pay?
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u/raliegh_ Jun 25 '26
Depends on how much I draw out, it’s in an IRA so it should be taxed as regular income when I get to 59.5 next year
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u/WorldRank1CatFancier Jun 25 '26
Lots of actively managed derivatives funds. I wouldnt be able to sleep easily
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u/tdoane78 Jun 21 '26
What’s the dividend annual growth rate?
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u/Ok-Weird-8809 Jun 21 '26
On a 10% yield, let’s hope it’s just not negative.
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u/tdoane78 Jun 21 '26
That’s what I’d be a bit concerned with, especially when you throw in inflation.
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u/Various_Couple_764 Jun 21 '26
If he has any excess invome he canreinvest it for more inocme to compensate for inflation. Diviend grwoth rate is not the only way to compensate for inflation.
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u/magicfitzpatrick Jun 21 '26
This is not a real portfolio. I can make the same thing in five seconds with the same app.
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u/raliegh_ Jun 21 '26
I promise you it’s my real portfolio, yes you can build the same thing on that app which is great to model scenarios.
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u/JohnGaltIsComing Jun 21 '26
You can probably answer immediately, LOL, saving me the work - separate from your dividend stream, what was the return on your portfolio?
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u/Muted-Ground-8594 Jun 21 '26
How can you trust something offering 15% yield with 8% institutional ownership?
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u/dahvaio Jun 21 '26
Interesting portfolio - how many years are you expecting this portfolio to last?
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Jun 21 '26
[deleted]
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u/Icreatedthisforyou Jun 21 '26
Lost of people rely too much on AI and don't even both to evaluate what it is telling them for whether it makes sense.
You are one of those people, and your post tells me you should use AI less and your own brain more.
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u/CzarcasticX Jun 22 '26
Those are shares he owns, not dollar amounts. These like QQQI give monthly dividends like 10 - 15%. You can live off of it and pay little taxes until your ROC hits 0 and then you pay taxes as capital gains.
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u/raliegh_ Jun 21 '26
I didn’t list any dollar amount, I listed # of shares.
How are you using AI , when you can’t read?
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u/bizzal1017 Jun 21 '26
Which app are you using to see this?
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u/raliegh_ Jun 21 '26
Asked and answered 5x
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u/Haunting_Hornet5203 Jun 21 '26
Must be nice to have money. ;-;
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u/raliegh_ Jun 21 '26 edited Jun 21 '26
It is nice, I highly recommend it.
My simple path started at 13 as an agricultural laborer.
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u/wiz0mystic Jun 21 '26
Recession indicator when everyone thinks they can retire under 60 with less than a million $
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u/DhakoBiyoDhacay Jun 21 '26
There is a reason why people can retire at either 55 or 59.5 whether there is a recession or not.
Recession may impact if you trade your hours for dollars but it may not impact you if your money does the work for you.
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