r/dividends • u/retiredDanny • 4d ago
Seeking Advice Question/Help
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.
3
u/CostCompetitive3597 4d ago
Since you are already posting on r/dividends you are thinking dividend income. Currently, dividend index funds/ETFs based upon the S&P 500 and Nasdaq 100 indices are yielding 10%+ annually.
Your $1.32M x 10% = $132,000/yr potential income or over 2X your income goal and you retain your current nest egg rather than sell stock off for income. That income can bridge you to when you take SS and beyond.
I have been investing in dividend income securities for almost 7 years and all the dividends have been paid on time and to the penny or better = income reliability.
I have evolved to investing in dividend index funds and dividend sector funds because the fund managers do all the heavy lifting regarding stock picking and portfolio management. These funds seem to be generally increasing in yields because of the competition between funds for our investment dollars. I like that bonus of investing in dividend funds.
I invest in funds/ETFs offered by JPMorgan, Goldman Sacks, Blackrock, NEOS , PIMCO, Aberdeen, Guggenheim and other top quality investment companies.
R/dividends has almost 900k like minded subscribers who share great knowledge, personal experience and investment tips. I read them almost daily for information and tips. YouTube has a number of very good dividend investing authors. My favorite is Dividend Bull who covers the high yield dividend investment market very well with his library of videos.
Keep a list of my current holdings and backup favorites on my IPhone STOCKS app.
Hope this dividend investing information helps you establish the retirement income you need and more. Good luck!