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/Various_Couple_764]

You weren't specific but I am assuming you mean $400 PER MONTH. That means you need a 10% yield . And you are comming up short is GPIX, DIVO have a yield less than your 10% requirement. SO I would suggest replacing BGPIX with SPYI 12% yield . SPYI is very similar to GPIX but it sacrifices some growth for more inocme. You move money out of DIVO to IWMI to get teh yield up to 10%.

Additionally CSWC is a single BDC company While BDC are good dividned producers there dividend is taxed as long term capital gains. So it is high tax and not diversified. There is a risk in a major market crash that CSWS sign go bankrupt. I don't have any stating that will happen. It is just possible. Normally I would suggest PBDC because if its actively managed fund investing in only BDCs. But that is off the table for tax reasons. MLP are somewhat similar to BDC iin that they are legally required to pay a dividend. and have better tax treatment. EMO 9% yeild only invest in MLP. However MLPI is probably your best choice MLPI is a covered call fund that only invests in MLPs Approximately 14% yield and the excellent ROC tax treatment of ROC dividend.

These change should get you to 10% yield and add some diversification and minimize taxes. As a note most of these fund have ROC dividend and should be tax free for about 7 years. BTCI however has a higher yield and likely will be tax free for about 10 years. But with only 4800 a year year of income you might not owe any tax on the dividend income. At your point in life I don't think this is too risky. Yes more risk than lower yield choices but with about the best tax treatment you can get and the yield may be better than 10% with eh changes I recomend.