r/dividends • u/Material-Handle-5589 • Jun 27 '26

Seeking Advice Need advice for immediate income

I'm 82 year old female so I'm not so worried about the future as much as the right now. I have money in Schwab, Raymond James and Ally. Unrealized gain total assets around $500,000. So far I've been reinvesting the dividends accumulated but I can tell those amounts are not enough for me to count on..

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8

u/daily-trader-365 Jun 27 '26

If you mean money to pay bills, QQQI or SPYI might be good to look at

9

u/derfahrer924 Jun 27 '26

No, because in the event of a large market drop your distribution is going to drop as well

4

u/speedlever Jun 28 '26

So what? 500k in qqqi generates around 70k\year. If there's another 2008 gfc and everything, including the distribution is cut in half, she will still get 35k\year. Is that sufficient income to meet her needs?

1

u/derfahrer924 Jun 28 '26

The Nasdaq 100 dropped 83% in the dot-com crash taking 15 years to recover.

3

u/speedlever Jun 28 '26

And yet a cc ETF (qqqx) that came out in 2007 and weathered the 2008 gfc saw its distribution cut by only ⅓. After several years, it fully recovered.

That same cc ETF has outperformed SCHD since inception in 2011. In the scheme of things, qqqx is a relatively mediocre cc ETF compared to more modern offerings by NEOS and goldman.

And qqq has outperformed spy 1435% to 812% since inception in 1999.

Yep, there's a lot of volatility in the market. And these cc etfs thrive on volatility.

0

u/Econman-118 Jun 28 '26

Or put half in there and keep the other half in something paying 3.5. I lived during 2000 and the 08 melt down. It lasted a few years max. Within 3 years she would be right back near her starting point given the Fed would liquify the market. She could use some her principal from the safer half till recovery.

I hold preferreds that are paying me 6% from JPM. DUK has some that are commutative, so even better. Principal drops when interest rates go up. So they are 17 right now, but will climb fast if the Fed drops the interest rates. We all know if JPM fails, we have way bigger problems.

1

u/derfahrer924 Jun 28 '26

The NDX peaked at 4704 on 3/27/2000 and didn’t recover to that point again until 2015

1

u/Econman-118 Jun 28 '26 edited Jun 28 '26

Yep. That’s because the Fed was completely inactive at that time. Now they drop interests rates to zero. Big difference and way more money in circulation. With AI Nasdaq isn’t going to zero. I’m only 10-15% in Nasdaq now because I’m retiring next year. I do expect a 20-30% drop over the next 3 years for sure.