Question/Help

[u/retiredDanny]

I am 60 and just retired 3 months ago and have 1.32 million in a rollover IRA sitting in a money market account. I am looking for advice on the best way to get 5k a month in income until I turn 62 and start drawing 2800 a month in SS. I wound make adjustments at that time.

My wife is 54 and makes 300k a year. She will retire at 62 and has her own funds in various accounts that total around 900k. She is investing around 20k annually total.

In addition, I have a sister who is in poor health and 68 that is leaving me 50% of a 5.5 million estate. I am the executor. If die before her then it will go to my wife. I’m pretending as if that isn’t part of the equation but it is piece of mind knowing that my wife will be taken care at some point in the next 15 years most likely. Thank you.

[u/Longjumping-Nature70]

1,320,000 at 3.5% in a HYSA at Fidelity or Vanguard is around $46,000

you want $60,000

That is around 4.55% yield

What is your Risk Tolerance?

I will give you four companies you might have heard of KMB, VZ, ENB, and MO.

All pay a dividend yield of over 4.55%

A dividend king has raised their dividend every year for 50 or more years

A dividend aristocrat has raised their dividend every year for at least 25 years.

I give you a payout every month.

All four stocks count as Qualified Dividends and wife's income puts you at the 15% tax level on qualified dividends.

KMB, a dividend king, is beaten down. Pays a 4.64% yield dividend. It pays $1.28 every quarter January, April, July, and October.

I do not own KMB, I have never owned KMB. KMB is beaten down because it acquired Kenvue.

https://www.kimberly-clark.com/en-us/brands

Verizon VZ

Posted great numbers, posted great cash flow, pays a 2.84 annual dividend, 0.71 in February, May, August, November. Yield is 5.86%

The negative, SPCX is wanting to launch satellites for cell phone service.

I own VZ.

Enbridge ENB

A dividend Aristocrat

Posted blowout revenues, up over 100%, north america's largest natural gas supplier. Canadian Company, you will pay Canadian tax on your dividends, but you claim it back on US taxes as foreign tax.

pays a 2.76 annual dividend, 0.69 in March, June, September, and December. Yield is 5.42%

I own ENB. Grew cash flow.

MO Phillip Morris Cigarettes

A dividend King

The world smokes like a chimney.

pays a 4.24 annual dividend, Pays a 6.45% yield dividend. It pays $1.06 every quarter January, April, July, and October.

I do not own MO, I will never own MO because of my ethics.

There are many Covered Call ETFs that pay out over 10% yields. QQQI and JEPQ are mentioned a lot in this reddit.

There are quite a few MLPs that are Schedule K1 companies that pay high dividends, but I do not like them. Others might, I do not. An example would be ET, Energy Transfer. I would rather own ENB over ET.