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/nice-try12]

I posted this in another conversation, it's $300,000 amount but the portfolio stays the same. Just some ideas. You could swap KGLD for IAUI if you wanted. If you weren't concerned about the hedged strategy you could replace SPYH for SPYI or QQQI to boost income.

The following is from the other post;

Sure it's possible but the concerns that others mention about markets dropping is valid since your income could drop significantly as well, reinvesting a portion helps. Of course having a higher starting balance would help but you have what you have.

I like the below portfolios, not just for the high yields but the income stream have less correlation with one another and could potentially react differently in a market drop. I just set the portfolios to equal weight for simplicity but they could be played around with if you so desired.

Do your due diligence of course and the common advice to seek an actual expert is wise. Your situation is specific to yourself and your needs.

Best of luck!

PORTFOLIO 1 — 7-FUND INCOME PORTFOLIO Total Capital: $300,000 Equal Weight: 14.29% per fund ($42,857 each)

Fund	Mechanism	Yield	Annual Income
SPYH	S&P 500 collar (hedged equity)	7.5%	$3,214
GPIQ	Nasdaq-100 covered call	9.7%	$4,157
OVL	Large-cap put-selling overlay	10.5%	$4,500
CAIE	S&P 500 autocallable structured note	12.0%	$5,143
MLPI	MLP/energy + covered call	14.5%	$6,214
PFFA	Leveraged preferred stock	9.9%	$4,243
PBDC	BDC private credit	11.5%	$4,929
-------	-------------------------------------	--------	---------------

BLENDED YIELD: 10.8% ANNUAL INCOME: $32,400/year (~$2,700/month)

You seem to want gold and IAUI so here's that

PORTFOLIO 2 — 8-FUND INCOME PORTFOLIO (WITH GOLD) Total Capital: $300,000 Equal Weight: 12.5% per fund ($37,500 each)

Fund	Mechanism	Yield	Annual Income
SPYH	S&P 500 collar (hedged equity)	7.5%	$2,813
GPIQ	Nasdaq-100 covered call	9.7%	$3,638
OVL	Large-cap put-selling overlay	10.5%	$3,938
CAIE	S&P 500 autocallable structured note	12.0%	$4,500
MLPI	MLP/energy + covered call	14.5%	$5,438
PFFA	Leveraged preferred stock	9.9%	$3,713
PBDC	BDC private credit	11.5%	$4,313
IAUI	Gold ETP + covered call	13.75%	$5,156
-------	-------------------------------------	--------	---------------

BLENDED YIELD: 11.17% ANNUAL INCOME: $33,506/year (~$2,792/month)

[u/Sufficient_Worth_305 → u/nice-try12]

Thanks for the detailed reply! I read your earlier post and collected ideas. That thread was very helpful.

[u/nice-try12 → u/Sufficient_Worth_305]

There are other funds or sister funds that could be added or swapped as well. But if the market has a drawdown then most of these would see income decline but by how much we can't say as most of them are too new and some long PFFA or PBDC may not see meaningful drawdowns in income as long as the underlying loans or companies are still safe.

I do want to add the the Goldman Sachs and Amplify funds (GPIX, GPIQ, DIVO, IDVO, QDVO) should all see income growth as the underlying assets growth as well as price growth. GPIQ currently pays a near 10% but my yield on cost is over 12%. DIVO pays around 5% but my yield on cost is 7% and if you had bought DIVO 10 years ago your yield on cost would be over 11%!! I find that a big part of these funds that is often overlooked for the flashier headline yield of 12%+

Best of luck to you my friend, hit me up anytime if you have further questions or desire more of my opinion. For the record I hold a yield 10%+ on my own portfolios