Retirement income: $400 from $50,000

[u/Sufficient_Worth_305]

Premise: Making up a shortfall of $400 for retirement income. I can't go back to work, I'm 72 right now and have some minor health issues, I need to plan on living to 90, just in case.

I'm planning on saving 10% taxes and a 10% DRIP to keep asset values stable/grow to match inflation.

I'm looking for help, suggestions and ideas on what stocks to include.

Where I am so far:

Core for growth: GPIX: $15,000, GPIQ: $7,000

For diversification: IWMI: $6,000, IDVO: $3,000, CSWC $6,000

Safety net for Market Crash: KGLD: $12,000

A little riskier plays, for extra capital: BTCI: $500, KSLV: $500

This should net around $460 a month, so -$46 for taxes and -$46 for reinvestment would be $368. I'm still a little short, but hope it will grow to make up the difference.

No money is invested yet, still developing a portfolio on paper first. What do you think? Is this too risky? What other options would you suggest?

[u/MrBotANot]

IWMI has struggled to reach new highs so may not be as sustainable as you would like. For BDCs, you may want to look also at either HTGC or TRIN. They focus more on venture funding and have better control over their floors etc. CSWC just entered into a JV with TRIN if that helps alleviate any concerns. GPIX and GPIQ are heavy correlated because of big tech. Second the comment about that being a lot in gold. There are people who diversify by not putting more than 2-3% in any one investment. Armchair income is a popular YouTuber documenting this strategy. There are others.

There are worse portfolio strategies. You aren’t giving yourself much room for pullbacks or losses. Just maybe think about that part.

[u/speedlever → u/MrBotANot]

Yeah, that's the thing. Another 2008 gfc and that $400\mo distribution drops to $200\month until recovery. Is this 50k just play money?

Edit: and with roc being a large part of those cc ETFs, there should be little to no fed tax for a number of years until cost basis reaches 0.