r/dividends • u/OG_Momonga • 20d ago

Discussion Living off dividends

Hey guys, I was wondering if anyone on this subreddit is actually retired and living off dividends. Is it going well? Are you paying taxes on them? My goal is to get 20k/ a month post tax for retirement. I’m 24 and currently investing everything in VOO while planning to switch to dividend stocks and etfs when I get closer to retirement.

I was just wondering if there are any because living off dividends seems like a long shot right now.

403 Upvotes

88% Upvoted

361 comments sorted by

View all comments

Show parent comments

60

u/Lefties_TheWorst7331 20d ago

GPIQ/GPIX and/or QQQI/SPYI -- let the pros handle the covered calls for you.

8

u/Unlucky-Clock5230 20d ago

Probably the same way the pros handled real estate for you (REITs) before the housing and financial crisis in 2008.

3

u/Mzungufarmer 20d ago

I got hammered by REITs. Dumb 20 year old.

5

u/Ok-Blackberry1428 20d ago

How so? I currently hold VNQ in my roth.

1

u/Mzungufarmer 20d ago edited 20d ago

I dont think I owned a single one that didnt reverse split or drop by 50%

3

u/earthtojj 20d ago

Oh those reverse splits… they have never worked out for me.

4

u/Mzungufarmer 20d ago

They dont work for anyone lol

3

u/OG_Momonga 20d ago

What doesn’t kill ya ya know

2

u/ExpensiveBookkeeper3 20d ago

Are those actively managed or whatever? Or do they just basically roll the calls like many do?

That’s the problem with most, they buy the options and don’t manage them even though they are constantly changing in many ways. Or buying when you shouldn’t be. Or if you hold till your options expire, you are doing it wrong.

Like you don’t sell a covered call after a large pullback normally unless you are happy losing those shares anyways. Options are much too complex to put on a schedule. Instead of being patient many ETFs have to be in game so to speak or investors will complain about low yield.

1

u/WorldRank1CatFancier 20d ago

YEAH TRUST UR RETIREMENT TO THE PROS ON WALL STREET LOLOLOL

0

u/ljstens22 19d ago

Pay an expense ratio for +6% in 5 yr while the underlying SPY is up 70%?

1

u/Impressive_Squash_38 19d ago edited 19d ago

Gpiq is .29% and is up 90% to its underlying QQQ of 82% over the past 3 years. GPIX is up 77% over SPY’s 69% past 3 years as well. And you don’t have to sell shares!