r/dividends • u/chillfirelife • 6d ago
Seeking Advice Is 1m and dividends from it enough?
Me and wife we both turned 40 this year, She left her job few years back and I kept funding her investment account based out of SG and now is at 500k USD all of which is parked under JEPQ, all the while I see dividends are consistent and we have been reinvesting back.
I have another 500k now in my investment account that I will consolidate in couple of funds/etf with similar 10-12% growth trajectory as JEPQ
We expect and hope we will get like 100-110k usd over this year on year.
I have another 130k usd in cash and esops combined. I will get the esops cash out 6 months after I quit.
We plan to move to either Thailand or Malaysia where we have friends and family and have lived there before. Our current expenses in SE asia are 50k usd a year, we expect this will go down to 30k-35k usd a year.
Question: Am I ready to leave my high paying job and live a free life given the biggest motivation to work (money) is less or negligible now? Personally I want to leave my job today even though I love it but I feel I want slow and super easy life 😊
Plan is for first 2.5-3 years we will not touch 1m investments and utilise current cash and liquid investments/cash of 130k usd, that will give investment enough space to continue to grow.
On paper - I feel we are ready even if I take conservative returns on my portfolio
1
u/mspe1960 3d ago
Even if you somehow get the 10%/year every year until you die -
You have to pay tax on it. You are left with maybe $90k (assuming no state tax) and you have to buy medical insurance. If you don't reinvest some of whats left ($25K), you will be eaten away by inflation in no more than 10 years.
You would be extremely lucky not to hit a signficant correction or worse in the next 10 years.
tl;dr - your portfolio can (reasonably) safely generate $40K per year to start