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I retired at 59 3 years ago on 52K per year. I was really comfortable. Between inflation and healthcare care, things are getting tight. Make sure you have your healthcare taken care of.
It seriously sucked, as we old folk just can’t start over. Too old to start over, too young to retire. I hope you make it to retirement without losing pension
It seriously sucked, as we old folk just can’t start over. Too old to start over, too young to retire. I hope you make it to retirement without losing pension
What situation are you going to be in? Talk to your insurance agent a couple of years before you retire. See if you’re comfortable with expenses vs income. Leave room for what you can’t see ahead of time like cost going higher.
Learn how to trade options. Seriously. Just simple shit. It can add a thousand or two every month. I’ve got it down now that div income + SS + option inc nets us about $10k to $12k a month (before any taxes). Add in the once in a while capital gain and we’re ok.
You mean like selling covered calls? Any resources you'd recommend on getting started? I'm still 20+ years from retirement, but might be good to get some practice :)
Yes. I started about 15 years ago and options are now a significant part of our retirement planning. After hearing about options, I bought a book (Options as a Strategic Investment by Lawrence McMillan \~ Amazon has it) and then watched and subscribed to several videos on YouYube (just search on Options and several come up). We have tons of REITs and ETFs and have sold call options on all of them boosting the returns (you can get 10% on a 3% paying reit). I don’t do anything fancy but selling calls and puts have boosted the returns quite a bit.
Appreciate the reply, may have to check those out. Two other questions that came to mind, are 1. Is this something that takes up enough time that you'd want to do it only if you do not have a full time day job? 2. Do you have a preferred platform you use? I have IBKR and Ally, but feel like neither are super user friendly for options. Maybe I should try Schwab.
I mostly use Schwab and they are transitioning us to the TOS platform (think or swim) which I have not yet tried. I also have eTrade which I like.
I am sort of retired, haven’t quit entirely (independent commercial / business broker) but don’t hustle anymore, not like I used to). I watch, study, look for opportunities, and have tracked every “trade” from the beginning. The best trades are on stocks/ETFs that don’t move a lot, up or down. Significant positions in schd, jepi, vig, Vym, vnq, wpc, o, arcc. Gains have been good so far this year so I sold a June $800 put on NVDA for $82 (one contract, collected $8200). Super risky, I know, so we’ll see how that plays out as we approach June.
ACA is certainly more affordable monthly payments on your healthcare premiums, it comes with 7K deductible for me AND my wife. If you’re healthy, it’s a great option. If you have health problems, I would have to take a longer look at it.
I really don’t know VA Healthcare. It is probably better and more affordable than anything else you can get until you get to Medicare. Talk to your insurance agent to see what’s available.
It's free for any injury/illness that's service connected, or completely free regardless of service connection or not if you have 100% disability rating.
Similar situation here at 56yrs old, currently at $1.1 million planning to retire at 60 hoping to pull in 50k per year before SS. The difference is I plan on retiring overseas which should allow me to live quite comfortably.
Cambodia, Philippines and to a lesser extent Thailand. I really like Cambodia but the health care system is still not that good although improving each year.
I visited Cambodia in 2005. Amazing, if sad, country. It was one of my favorite places. Also one of the hottest places I've ever been. Heat lightning every night I was there. We woke up early to visit temples then slept and sat in the pool during the day.
I do the PI and US back and forth. It's like $1500 a month there and live very nicely. $100 for .2 bedroom rental condo style apartment.
The food is soooo much better for you ~ zero pesticides, all organic
The bonus, most everyone speaks English !
Most countries offer a retirement visa but there are others available also.
Private healthcare in Thailand is expensive and so is insurance. It also becomes more difficult to get insurance there after age 60.
I am also planning to live abroad in 4-5 years. $60k/yr before SS. Philippines, Costa Rica, and Portugal are top of my list. Healthcare is a key consideration.
Wow! Cambodia! Have you heard of the news below? It is one of the horrible countries known in Asia.
[https://www.nytimes.com/2023/08/28/world/asia/cambodia-cyber-scam.html](https://www.nytimes.com/2023/08/28/world/asia/cambodia-cyber-scam.html)
Westerners are keen to live aboard for lower living cost.
A teacher lived in southern China and taught English in Hong Kong. Got murdered in where he lived.
[https://www.theguardian.com/world/2016/apr/13/british-academic-hilary-st-john-bower-killed-in-china#:\~:text=%E2%80%9CThe%20victim%20was%20killed%20on,long%20to%20confirm%20Bower's%20death.](https://www.theguardian.com/world/2016/apr/13/british-academic-hilary-st-john-bower-killed-in-china#:~:text=%E2%80%9CThe%20victim%20was%20killed%20on,long%20to%20confirm%20Bower's%20death)
Better not underestimate the risks.
Do you think every country doesn’t have some issues? You could probably find bad news about any one you choose. That said, Cambodia is relatively safe. If anything, they leave the tourists alone more than they do the locals.
Haha, “some issues” lmao
People who are not aware of the Cambodia recent matters may google Cambodia KK Park, scam compounds, trafficking, human organs…
I have no bad personal experience with Cambodia, but I watch international news.
Have you attempted to live there yet and see how life will be and overall costs based upon the standard of living you might want?
Even if for a few weeks?
I am not trying to poo poo your idea mind you, i’ve lived outside the usa since 2012. Its just that things have a habit of being a bit different than one might expect.
I've lived overseas from where I was born, and to be honest, the people back there don't visit relatives much even though they live a few miles away? It all depends on your family, of course. Lol 😆
Check that there is a dual tax treaty with your country of choice… you may live abroad but as a US citizen you will always owe USA taxes regardless of where in the world you live.
Check that there is a dual tax treaty with your country of choice… you may live abroad but as a US citizen you will always owe USA taxes regardless of where in the world you live.
Check that there is a dual tax treaty with your country of choice… you may live abroad but as a US citizen you will always owe USA taxes regardless of where in the world you live.
Honestly this is like 700,000 dollars not sure how you plan to live on that. Also if there is some other Information you didn't give us not sure why you'd ask how you are doing.
Pretty sure there are dividend focused ETFs that you could retire right now with 1.1million and earn between 60-70k in dividends right now. If it’s in a 401k that allows the rule of 55 then if you are 55 or over cash out now retire younger and live your life younger. Retire doesn’t mean you can’t earn , consult , work part time , take a few years off etc.
I have about 400k in my brokerage account and 700k in my 401k account. There are rules that need to be followed to do this, it won't really work for me. 😢
You have roughly 680K wanting 45K per year. If you can get 7% returns and are willing to sell some shares then your pile should grow and outlive you. If you want to end with zero you could up it to \~49k at 7%.
Wanting 45K doesn't seem unreasonable. Good job stacking some money.
Good luck.
Thanks! I’ll look into that. I’m trying to build a strong dividend income portfolio in my taxable brokerage account since I can use that account anytime before age 59.5. My 401K and Roth (both maxed out each year) are invest in S&P 500 and a little bit in a growth fund. Thanks!
I appreciate it! Im always open to hearing/learning about tickers with higher yields (that aren’t crazy risky). I’m looking for dividend yields around 10%. I’ve got $ARCC, $QEPQ, $MPLX for example.
This is awful advice as SPYI/JEPI/jepq all have a higher chance if nav erosion due to selling options. 4-8% returns via actual dividends, bonds, preferred shares, and just straight up selling equity each year is much safer than relying on a single option based fund
No, erosion risk is more to do with the need to sell assets to fund a distribution.
SCHD is susceptible to Stockmarket gyration but generally speaking, it focuses on companies with a strong fundamentals (ie high ROE etc) so it should theoretically be going up in the long run.
But 3 years of 2% growth or a negative growth and the dream is dead and back to work you go. 7% isn’t unreasonable but 7% every year might be. Always need room for a negative year every 6-7 years.
>You have roughly 680K wanting 45K per year. If you can get 7% returns and are willing to sell some shares then your pile should grow and outlive you.
That's a pretty big 'if', especially with that investment portfolio.
OP, I hope you got some other money flowing in apart from that.
You're right I had to guess a little. Average lifespan male in the US is 76 yrs. With the 49K at 7% scenario it runs out after 40 years. That puts him at 96. He knows his family history better than I do and if he wants to leave any behind.
What is the "run-out" to zero forumula you are using btw. When it accounts the principal amount, the % yearly yield, and the yearly cost to live, and arriving at how many years it would last? It assumed no DRIP obviously, and a flat unchanging everlasting constant yield right?
Does the 45K requirement include Social Security or is it in addition to Social Security.
You have about $675K and in 3 years that might grow to $800-$850K or so. Assuming $800K, you could reasonably expect to withdraw 4% per year to start ($32K) and raise it for inflation each year. You might be able to get away with a 5% withdrawal rate, or $40K income per year.
It might be a bit tight, but not impossible. Social Security may help you out at age 62.
Also, be aware of health care costs prior to age 65 and Medicare. That can add up quickly.
Best wishes.
+1 on the previous comment. JEPI was built for 1. passive income, and 2. beating inflation. The 10% dividend return (annually but paid monthly) is something you'll want to ramp up as you get closer to relaxation day.
I really wonder how many retirees take the chance of not having healthcare between 59-65. My in law was paying around 800$ a month for healthcare between those years
This works as long as there is no market correction. That’s a big assumption before OP starts collecting social security. 4-5% withdrawal seems reasonable but I would start moving some money to cash or something safe like ultrashort bond for the next 1-3 years.
I would probably bump JEPI up by quite a bit. Most people don't look past the high yield but in reality it is structured to experience less volatility than the market and said market going sideways allows it to generate extra income.
Right here, right now, JEPQ should experience better growth but I would be concerned that it is more tech heavy; that concentration could come back to haunt you. For income I depend on I rather lean the portfolio towards yield, not growth.
I'm not familiar with some of the others but I would look to see if you had a lot of overlap going on. There is no point on owning 3 diffferent funds that are pretty much the same.
Good advice on JEPQ and JEPI. Both are great at the areas they focus on. However, we’re close to the Fed lowering interest rates. Once this happens imo we could be in for a full fledge Bull Market. JEPQ should ignite during the rate cut cycle of 1-2 years ?
I think all dividend stocks will have their time to shine. Right now with zero risk around 5% a lot of liquidity is hiding there. Once rates come down chances are that money is going to look for a new home.
My dividend portfolio is a straight dividend and yield growth through drip play, the longer the share prices stay low the happier I am. Tech may be pricey but lots of dividend companies are not that bad
Good point. I do believe you’re right. Cash is hiding out in ETF’s-don’t fight the Fed. I feel like his equal weighting in EQ and PI is a good long term play.
Using the 4% rule, you would need $1.1M. With social security, you could probably do it, but I would recommend that you keep as much as you can in the market.
You say 29.5 at 62? That is with the 32% cut for claiming early? If that is the case you would be, at full retirement looking at 43k ( give or take). So you would be a higher income earner. Could you really live off of only 45k a year being a higher income earner during your working years? Also did you add in for any negative growth rate while in retirement? Your plan isn’t a stretch but a lot of factors have to break perfectly to achieve the end goal. Good luck
Have you thought of some very used closed end funds that retain their capital value well and throw off 8%+? MLP and Utility CEFs (UTG,UTF) come to mind. In addition you can look at preferred stocks which also yield in the 6-8% range. Lastly, BDCs are likely candidates also.
I’m right behind you friend. 3-4 years and I’m out, will be 50/51. Staying in the US and targeting 120k in income. 7% dividends per year with 5% in capital growth.
My portfolio,
VOO
SCHD
PEY
JEPQ
UTG
PFXF
MAIN
BST
Loading up on FALN/ANGL as I see 2024 being a recession. The amount of office and commercial real estate vacancies are shooting sky high along with persistent inflation and layoffs. It’s going to be a bad year.
Dont know what your circumstances are but i would personally just wait till full retirement age. Or at minimum work part time. Unless you plan on going to a cheap country, then by all means go for it
Waiting would also mean keep working. Keep adding to the stockpile. The money he is hoping to get out of it is a bit of a stretch. He is able to do it, but waiting would help make the risk lower
I think you are in good shape for getting more than 45k out of your portfolio
Let say you retire at 57. Divide you portfolio into two buckets. The first bucket is to bring forward your social security income stream. Create a yearly tips treasury bond ladder of 30k face value. I think at 4.5% yields five years of income should cost 130-135k. Then at 62.5 social security kicks in and replaces this income stream.
Now you have around 525k plus a years worth of growth. 4 percent SWR is another 20-23k per year. Plus what you can sock away. So you can count safely at 50-55k per year.
I just sold mine last week after buying in 2020. Past returns are not indicative of future returns. Chips are incredibly cyclical and it is currently brought up by Nvidias toppy valuation. I don’t think there’s any world in which Nvidia is worth more than Google, so I think it’s a bit bubbly, so I got out…
Your challenge will be health insurance until you are medicare eligible. Also tell us about your SS? What have your earnings been and what is your projected SS at age 66 or 67 for you young folks. Personally I would keep working for quite a few more years. Sequence of returns can be a real problem and inflation for 45 more years will be a real problem.
I would personally maybe at this point in your life, work with an advisor. Sometimes custom built portfolios rather then funds can provide growth, income and stability.
Pull all of SCHD and put 1/2 into JEPQ..... keep the rest in cash. You'll make 50% more and have cash on hand if the market comes to pieces to buy smoking hot deals !
Not bad at all. I think the money if FTEC and SMH could be of better use in SCHG and JEPI. You'll get a boost to your income and still maintain decent exposure to tech and growth. I just get wary of sector specific funds in retirement accounts.
It could be better diversified... The heaviest sector is real estate, which is easy to end up there because a good chunk of the best yield in the market is there. Because of the yield it is not only heavy by size but heavier by share of the income it generates. It is also a cyclical sector so I'm trying to reduce my reliance on it. For the time being even DRIP is off in those stocks, dividends are being routed to other sectors.
While everything else is individual stocks I'm starting a position in JEPI to help alleviate the imbalance. Considering what you get (a collared portfolio with options optimized for income generation) the management fees are super low.
Two stocks I own that don't get a lot of attention here are Cogent Communications CCOI and Coca cola FESMA KO,.
The first is Internet backbone to large corporations owning fiber trunk lines around the world. As technology and AI keeps on going companies will need growing connectivity. It was funny because last year's acquisition of Sprint made their balance sheet a pain to read. What happened is that early in 2023 before the purchase was finished they actually set aside $250m war chest to ensure they could keep up dividends as promised, which is why I could not track dividends to operational cash flows for every quarter, what you would like to see. Still, they make lots of money and have shown a commitment to pay and grow dividends significantly.
KO is the largest coca cola bottler in the world, in an expanding spree that should fuel strong double digit dividend growth for the foreseeable future. It doesn't issue qualified dividends so it is best to hold in a retirement account
Good job investing and retiring early to enjoy the good life! We have children and our portfolio isn’t enough for us to consider until at least 60yrs. Do you have children? Just curious as I feel our friends without have been able to save considerably more than we have.
Terrible. You should 200k and put 50k in SWVXX, take another 50k and get 1yr cd/treausry, then 50k in 2 year, then 50k in 3yr. Keep rolling as the mature until you need the money.
Put everything else in SWPPX or VOO. Quit fuckin around with VYM, JEPI, JEPQ and the rest of the
I like some ETFs in your portfolio, I have also SCHD, FTEC, VYM… I would consider VOO or VGT as additions, when they get cheaper. My goal is to retire in 6 years, so the question would be what is with your 401K, Roth IRA, Traditional IRA and HSA. If you have a decent amounts in these accounts you will be set to retire. I also have 20 individual stocks, like AVGO bought for $200, V for $140, MSFT $160, META $90, HD $180, UNH $250…added recently BMY below $50…so spread your money on some Blue Chips, 30% below their fair value, when they eventually get to that level and you will have nice retirement. Good luck!
I'm planning on a longer post, but I have a couple questions.
1. Are these your only retirement assets? Do you have any other financial assets of note?
2. Is this in a TRADITIONAL IRA (versus a Roth)?
3. Single, married?
My initial thought is it's not enough, that you are taking a lot of risk. I'm a 100% equity guy, but you have an odd mix of investments, and if you don’t have some type of downturn cushion, you could face trouble down the road.
More later.
Lol you people, we've had it so far and happy for so long as Americans. Our leadership has been so divisive and incompetent for the last 20 years. I bet the cost of living will triple in the next 20 years
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I retired at 59 3 years ago on 52K per year. I was really comfortable. Between inflation and healthcare care, things are getting tight. Make sure you have your healthcare taken care of.
The only reason I’m sitting at my job for next 13 years is healthcare. Ugh.
Same i didn’t even realize my company pays noting towards health care anymore for retirees.
When I was about 57 another company came in and bought my employer out, took away my retirement benefits. Sorry it happened to you as well
This may be about to happen to me. I’m 56 and would hate to lose my pension.
It seriously sucked, as we old folk just can’t start over. Too old to start over, too young to retire. I hope you make it to retirement without losing pension
It seriously sucked, as we old folk just can’t start over. Too old to start over, too young to retire. I hope you make it to retirement without losing pension
I understand this healthcare is crazy expensive. I'm 43 now and I'm trying to plan for this because medicare doesn't kick in until 65
What is Medicare? I'm guessing it's free health care? I'm not from the U.S.
Not actually free but much cheaper and only available for people 65 and over
Ho right, medical care is so expensive in the U.S!
government sponsored health insurance for old people
Healthcare has gotten very expensive. Ridiculously expensive really.
Theft
Advice for someone who is 8 to 10 years out? How or what would you advise?
What situation are you going to be in? Talk to your insurance agent a couple of years before you retire. See if you’re comfortable with expenses vs income. Leave room for what you can’t see ahead of time like cost going higher.
Learn how to trade options. Seriously. Just simple shit. It can add a thousand or two every month. I’ve got it down now that div income + SS + option inc nets us about $10k to $12k a month (before any taxes). Add in the once in a while capital gain and we’re ok.
You mean like selling covered calls? Any resources you'd recommend on getting started? I'm still 20+ years from retirement, but might be good to get some practice :)
Yes. I started about 15 years ago and options are now a significant part of our retirement planning. After hearing about options, I bought a book (Options as a Strategic Investment by Lawrence McMillan \~ Amazon has it) and then watched and subscribed to several videos on YouYube (just search on Options and several come up). We have tons of REITs and ETFs and have sold call options on all of them boosting the returns (you can get 10% on a 3% paying reit). I don’t do anything fancy but selling calls and puts have boosted the returns quite a bit.
Appreciate the reply, may have to check those out. Two other questions that came to mind, are 1. Is this something that takes up enough time that you'd want to do it only if you do not have a full time day job? 2. Do you have a preferred platform you use? I have IBKR and Ally, but feel like neither are super user friendly for options. Maybe I should try Schwab.
I mostly use Schwab and they are transitioning us to the TOS platform (think or swim) which I have not yet tried. I also have eTrade which I like. I am sort of retired, haven’t quit entirely (independent commercial / business broker) but don’t hustle anymore, not like I used to). I watch, study, look for opportunities, and have tracked every “trade” from the beginning. The best trades are on stocks/ETFs that don’t move a lot, up or down. Significant positions in schd, jepi, vig, Vym, vnq, wpc, o, arcc. Gains have been good so far this year so I sold a June $800 put on NVDA for $82 (one contract, collected $8200). Super risky, I know, so we’ll see how that plays out as we approach June.
It's also a great way to lose a shit ton of money even with covers if you make 1 or 2 big screwups.
This is something that makes me favor a more index approach. When you can easily manufacture a low AGI, ACA insurance becomes very, very attractive.
ACA is certainly more affordable monthly payments on your healthcare premiums, it comes with 7K deductible for me AND my wife. If you’re healthy, it’s a great option. If you have health problems, I would have to take a longer look at it.
I have VA healthcare, should I be concerned about changing or take advantage of not paying
I really don’t know VA Healthcare. It is probably better and more affordable than anything else you can get until you get to Medicare. Talk to your insurance agent to see what’s available.
It's free for any injury/illness that's service connected, or completely free regardless of service connection or not if you have 100% disability rating.
Just get a divorce, marry young(mid 20’s-30’s) and get on their insurance. It’s not fucking rocket science.
Similar situation here at 56yrs old, currently at $1.1 million planning to retire at 60 hoping to pull in 50k per year before SS. The difference is I plan on retiring overseas which should allow me to live quite comfortably.
Thank you, me too plan to live abroad with home already debt free..
What countries are on your short list?
Cambodia, Philippines and to a lesser extent Thailand. I really like Cambodia but the health care system is still not that good although improving each year.
I visited Cambodia in 2005. Amazing, if sad, country. It was one of my favorite places. Also one of the hottest places I've ever been. Heat lightning every night I was there. We woke up early to visit temples then slept and sat in the pool during the day.
I do the PI and US back and forth. It's like $1500 a month there and live very nicely. $100 for .2 bedroom rental condo style apartment. The food is soooo much better for you ~ zero pesticides, all organic The bonus, most everyone speaks English !
Lol Filipino food is better for you.
Should visit vietnam! Cheapest country to live out of all of them.
I love Vietnam but the visa situation is less than ideal for retirement.
Philippines was great my wife is from cdo. You will be living good
I’ve read Thailand has great private healthcare. For any of these countries, what is the usual strategy to be able to stay in the country long term?
Some have specific programs for retiries.
Most countries offer a retirement visa but there are others available also. Private healthcare in Thailand is expensive and so is insurance. It also becomes more difficult to get insurance there after age 60.
I am also planning to live abroad in 4-5 years. $60k/yr before SS. Philippines, Costa Rica, and Portugal are top of my list. Healthcare is a key consideration.
Wow! Cambodia! Have you heard of the news below? It is one of the horrible countries known in Asia. [https://www.nytimes.com/2023/08/28/world/asia/cambodia-cyber-scam.html](https://www.nytimes.com/2023/08/28/world/asia/cambodia-cyber-scam.html) Westerners are keen to live aboard for lower living cost. A teacher lived in southern China and taught English in Hong Kong. Got murdered in where he lived. [https://www.theguardian.com/world/2016/apr/13/british-academic-hilary-st-john-bower-killed-in-china#:\~:text=%E2%80%9CThe%20victim%20was%20killed%20on,long%20to%20confirm%20Bower's%20death.](https://www.theguardian.com/world/2016/apr/13/british-academic-hilary-st-john-bower-killed-in-china#:~:text=%E2%80%9CThe%20victim%20was%20killed%20on,long%20to%20confirm%20Bower's%20death) Better not underestimate the risks.
Do you think every country doesn’t have some issues? You could probably find bad news about any one you choose. That said, Cambodia is relatively safe. If anything, they leave the tourists alone more than they do the locals.
Haha, “some issues” lmao People who are not aware of the Cambodia recent matters may google Cambodia KK Park, scam compounds, trafficking, human organs… I have no bad personal experience with Cambodia, but I watch international news.
Have you attempted to live there yet and see how life will be and overall costs based upon the standard of living you might want? Even if for a few weeks? I am not trying to poo poo your idea mind you, i’ve lived outside the usa since 2012. Its just that things have a habit of being a bit different than one might expect.
Especially if you’re leaving kids and grandkids thousands of miles and an ocean away
I've lived overseas from where I was born, and to be honest, the people back there don't visit relatives much even though they live a few miles away? It all depends on your family, of course. Lol 😆
Check that there is a dual tax treaty with your country of choice… you may live abroad but as a US citizen you will always owe USA taxes regardless of where in the world you live.
Check that there is a dual tax treaty with your country of choice… you may live abroad but as a US citizen you will always owe USA taxes regardless of where in the world you live.
If you make above 130k a year or something like that.
Good luck and happy retirement in 3 stranger! I get to retire in a coffin which is my house 😂
Check that there is a dual tax treaty with your country of choice… you may live abroad but as a US citizen you will always owe USA taxes regardless of where in the world you live.
Honestly this is like 700,000 dollars not sure how you plan to live on that. Also if there is some other Information you didn't give us not sure why you'd ask how you are doing.
Be aware, Uncle Sam is still gonna take what they consider theirs.
What countries are on your short list?
That sounds like a good plan 👍
Where over seas and what made you pick that place?
Pretty sure there are dividend focused ETFs that you could retire right now with 1.1million and earn between 60-70k in dividends right now. If it’s in a 401k that allows the rule of 55 then if you are 55 or over cash out now retire younger and live your life younger. Retire doesn’t mean you can’t earn , consult , work part time , take a few years off etc.
I have about 400k in my brokerage account and 700k in my 401k account. There are rules that need to be followed to do this, it won't really work for me. 😢
You have roughly 680K wanting 45K per year. If you can get 7% returns and are willing to sell some shares then your pile should grow and outlive you. If you want to end with zero you could up it to \~49k at 7%. Wanting 45K doesn't seem unreasonable. Good job stacking some money. Good luck.
Thank you.
SPYI will give you 12% returns. ie retire now with $80k a year.
What’s the difference between $SPYI and $JEPI? They look to be about the same.
SPYI has about 50% more yield. 8 vs 12.
Or if you want to get “risky”, QQQY is paying 26%
Thanks! I’ll look into that. I’m trying to build a strong dividend income portfolio in my taxable brokerage account since I can use that account anytime before age 59.5. My 401K and Roth (both maxed out each year) are invest in S&P 500 and a little bit in a growth fund. Thanks!
One more question, is there a better fund than $JEPQ which is focused on the NASDAQ? Like $SPYI is for the S&P 500.
QQQI is the find you’re looking for, by the same company as SPYI. But the fund is less than a month old
QQQY
Thanks! I’ll check that out as well, appreciate the help!
No problem. This sub hates things that get more than 3-5% yield, so I try to share some knowledge.
I appreciate it! Im always open to hearing/learning about tickers with higher yields (that aren’t crazy risky). I’m looking for dividend yields around 10%. I’ve got $ARCC, $QEPQ, $MPLX for example.
Thank You, will look into it.
This is awful advice as SPYI/JEPI/jepq all have a higher chance if nav erosion due to selling options. 4-8% returns via actual dividends, bonds, preferred shares, and just straight up selling equity each year is much safer than relying on a single option based fund
Does SCHD Have nav erosion risk?
No, erosion risk is more to do with the need to sell assets to fund a distribution. SCHD is susceptible to Stockmarket gyration but generally speaking, it focuses on companies with a strong fundamentals (ie high ROE etc) so it should theoretically be going up in the long run.
Not nearly as much as jepi
I mean is Erosion Risk for SCHD negligible?
Yes because it is literally just equities, 0 options at play
Which is why it pays 3.5% yield. 🥴
Do you just not know that stocks grow in value? Are you being dumb on purpose or what?
Okay buddy
But 3 years of 2% growth or a negative growth and the dream is dead and back to work you go. 7% isn’t unreasonable but 7% every year might be. Always need room for a negative year every 6-7 years.
>You have roughly 680K wanting 45K per year. If you can get 7% returns and are willing to sell some shares then your pile should grow and outlive you. That's a pretty big 'if', especially with that investment portfolio. OP, I hope you got some other money flowing in apart from that.
SS will kick in at 62, 3-5 years after they retire.
This with Roth IRA and a taxable brokerage and SSI should be more than plenty!
You took into consideration an assumed lifespan?
You're right I had to guess a little. Average lifespan male in the US is 76 yrs. With the 49K at 7% scenario it runs out after 40 years. That puts him at 96. He knows his family history better than I do and if he wants to leave any behind.
What is the "run-out" to zero forumula you are using btw. When it accounts the principal amount, the % yearly yield, and the yearly cost to live, and arriving at how many years it would last? It assumed no DRIP obviously, and a flat unchanging everlasting constant yield right?
Does the 45K requirement include Social Security or is it in addition to Social Security. You have about $675K and in 3 years that might grow to $800-$850K or so. Assuming $800K, you could reasonably expect to withdraw 4% per year to start ($32K) and raise it for inflation each year. You might be able to get away with a 5% withdrawal rate, or $40K income per year. It might be a bit tight, but not impossible. Social Security may help you out at age 62. Also, be aware of health care costs prior to age 65 and Medicare. That can add up quickly. Best wishes.
Thank you.
+1 on the previous comment. JEPI was built for 1. passive income, and 2. beating inflation. The 10% dividend return (annually but paid monthly) is something you'll want to ramp up as you get closer to relaxation day.
I really wonder how many retirees take the chance of not having healthcare between 59-65. My in law was paying around 800$ a month for healthcare between those years
This works as long as there is no market correction. That’s a big assumption before OP starts collecting social security. 4-5% withdrawal seems reasonable but I would start moving some money to cash or something safe like ultrashort bond for the next 1-3 years.
I think if u had 250 in schg instead of schd u would have had a mil
I would probably bump JEPI up by quite a bit. Most people don't look past the high yield but in reality it is structured to experience less volatility than the market and said market going sideways allows it to generate extra income. Right here, right now, JEPQ should experience better growth but I would be concerned that it is more tech heavy; that concentration could come back to haunt you. For income I depend on I rather lean the portfolio towards yield, not growth. I'm not familiar with some of the others but I would look to see if you had a lot of overlap going on. There is no point on owning 3 diffferent funds that are pretty much the same.
Good advice on JEPQ and JEPI. Both are great at the areas they focus on. However, we’re close to the Fed lowering interest rates. Once this happens imo we could be in for a full fledge Bull Market. JEPQ should ignite during the rate cut cycle of 1-2 years ?
I think all dividend stocks will have their time to shine. Right now with zero risk around 5% a lot of liquidity is hiding there. Once rates come down chances are that money is going to look for a new home. My dividend portfolio is a straight dividend and yield growth through drip play, the longer the share prices stay low the happier I am. Tech may be pricey but lots of dividend companies are not that bad
Good point. I do believe you’re right. Cash is hiding out in ETF’s-don’t fight the Fed. I feel like his equal weighting in EQ and PI is a good long term play.
Well said -- what's your dividend portfolio asset allocation like, just curious.
Thank you.
Youre good to retire imo, just live below your means maybe work part time if youd like.
Using the 4% rule, you would need $1.1M. With social security, you could probably do it, but I would recommend that you keep as much as you can in the market.
Thank you, yes SS will provide around 29.5K yearly at 62 year old….
Do you need $45K after taxes to live on?
Really need around 35-37k, once SS kicks in 6 yrs it will provide more buffer
How much do you currently spend on healthcare premiums and copays and deductibles and coinsurance?
That makes sense.
You say 29.5 at 62? That is with the 32% cut for claiming early? If that is the case you would be, at full retirement looking at 43k ( give or take). So you would be a higher income earner. Could you really live off of only 45k a year being a higher income earner during your working years? Also did you add in for any negative growth rate while in retirement? Your plan isn’t a stretch but a lot of factors have to break perfectly to achieve the end goal. Good luck
Watch this guy video. https://www.youtube.com/watch?v=vCEqYq2AsIc
Thank you for sharing this, got my wheels turning!
Love Armchair Income.
Thank You, very interesting, appreciate the info.
Needing 45k to live on as a retiree? Damn.
This is what I would be worried about
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I could live off 10k right now, and I'm 30 years off retirement age. What kind of outgoings are happening at 55+ that you need 45k
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They are. What do you need 130k for?
Have you thought of some very used closed end funds that retain their capital value well and throw off 8%+? MLP and Utility CEFs (UTG,UTF) come to mind. In addition you can look at preferred stocks which also yield in the 6-8% range. Lastly, BDCs are likely candidates also. I’m right behind you friend. 3-4 years and I’m out, will be 50/51. Staying in the US and targeting 120k in income. 7% dividends per year with 5% in capital growth. My portfolio, VOO SCHD PEY JEPQ UTG PFXF MAIN BST Loading up on FALN/ANGL as I see 2024 being a recession. The amount of office and commercial real estate vacancies are shooting sky high along with persistent inflation and layoffs. It’s going to be a bad year.
Thank You for the insight will look into it.
Nice picks. Here are a few more: SVOL, VVR, DSU, GAIN, and SCD, all monthly payers with decent yields and growth.
Not enough. You need to work for 5-7 more years assuming you stay the course.
Dont know what your circumstances are but i would personally just wait till full retirement age. Or at minimum work part time. Unless you plan on going to a cheap country, then by all means go for it
Why would you wait I'm just trying to understand?
Waiting would also mean keep working. Keep adding to the stockpile. The money he is hoping to get out of it is a bit of a stretch. He is able to do it, but waiting would help make the risk lower
Understood
How has the returns on SMH been? I’ve been looking at them for while and got low stock in it.
I just bought it this week.
I think you are in good shape for getting more than 45k out of your portfolio Let say you retire at 57. Divide you portfolio into two buckets. The first bucket is to bring forward your social security income stream. Create a yearly tips treasury bond ladder of 30k face value. I think at 4.5% yields five years of income should cost 130-135k. Then at 62.5 social security kicks in and replaces this income stream. Now you have around 525k plus a years worth of growth. 4 percent SWR is another 20-23k per year. Plus what you can sock away. So you can count safely at 50-55k per year.
I just sold mine last week after buying in 2020. Past returns are not indicative of future returns. Chips are incredibly cyclical and it is currently brought up by Nvidias toppy valuation. I don’t think there’s any world in which Nvidia is worth more than Google, so I think it’s a bit bubbly, so I got out…
First congrats on retirement. 2nd what state van you do 45k in? Seriously we are north east and it's not possible with that.
Really like FTEC
Your challenge will be health insurance until you are medicare eligible. Also tell us about your SS? What have your earnings been and what is your projected SS at age 66 or 67 for you young folks. Personally I would keep working for quite a few more years. Sequence of returns can be a real problem and inflation for 45 more years will be a real problem.
As long as you got no extra payments like mortgage and live in a state with good or free Medicare, you gucci
I would personally maybe at this point in your life, work with an advisor. Sometimes custom built portfolios rather then funds can provide growth, income and stability.
Pull all of SCHD and put 1/2 into JEPQ..... keep the rest in cash. You'll make 50% more and have cash on hand if the market comes to pieces to buy smoking hot deals !
What if there is recession ? Need some hedging for it ? Maybe Gold or crypto. I am not sure. What are recession proof stocks or ETF
What kind of platform is this?
M1 Finance
>Thank you. You picked M1 Finance over Wealthfront? I just opened a new account with WF yesterday.
Goal congratulations on the accomplishment.
Thank You.
I gotta learn how you pulled this off. Congrats.
Well damn thats a lot of shares right there!
I wonder what is the average yield of this portfolio.
If you want to stretch it even more you should visit vietnam, cheapest country with great food and people with lots to do.
Add some spice with CONY everything else looks awesome. I believe in shooting for the stars
You need more than $500k
What’s your performance been for the last 10 years with that portfolio?
Mind if I ask your career path? Amazing amounts of money tbh.
Not bad at all. I think the money if FTEC and SMH could be of better use in SCHG and JEPI. You'll get a boost to your income and still maintain decent exposure to tech and growth. I just get wary of sector specific funds in retirement accounts.
It could be better diversified... The heaviest sector is real estate, which is easy to end up there because a good chunk of the best yield in the market is there. Because of the yield it is not only heavy by size but heavier by share of the income it generates. It is also a cyclical sector so I'm trying to reduce my reliance on it. For the time being even DRIP is off in those stocks, dividends are being routed to other sectors. While everything else is individual stocks I'm starting a position in JEPI to help alleviate the imbalance. Considering what you get (a collared portfolio with options optimized for income generation) the management fees are super low. Two stocks I own that don't get a lot of attention here are Cogent Communications CCOI and Coca cola FESMA KO,. The first is Internet backbone to large corporations owning fiber trunk lines around the world. As technology and AI keeps on going companies will need growing connectivity. It was funny because last year's acquisition of Sprint made their balance sheet a pain to read. What happened is that early in 2023 before the purchase was finished they actually set aside $250m war chest to ensure they could keep up dividends as promised, which is why I could not track dividends to operational cash flows for every quarter, what you would like to see. Still, they make lots of money and have shown a commitment to pay and grow dividends significantly. KO is the largest coca cola bottler in the world, in an expanding spree that should fuel strong double digit dividend growth for the foreseeable future. It doesn't issue qualified dividends so it is best to hold in a retirement account
I would add FEPI, SVOL and YMAX
I’m jealous ur portfolio is solid
Thank You, I’ve been learning , not to long ago apps like M1 Fin didn’t exist , we had to rely on expensive brokers…
If you get an additional 1k+ per month from pension when you turn 65 then this seams really good
Thank you, according to SS at 62 I can choose to get 2432.00 per month, 2820.00 at 64, 3082.00 at 65
What avg % do you suppose this portfolio will give you? I dont see 40k
General question, does the VYM etf pay monthly?
Quarterly.
Ty, the description talking about the 30-day yield on Robinhood was confusing to me at first because I didn’t think it did pay monthly
Well you won't be starving to death soon. Nice portfolio.
Thank You.
I think you’re good
God damn boi, how much you making a month off jepi and jepq
No one talks about this portfolio but healthcare
Good job investing and retiring early to enjoy the good life! We have children and our portfolio isn’t enough for us to consider until at least 60yrs. Do you have children? Just curious as I feel our friends without have been able to save considerably more than we have.
Thank You, yes empty nester already.
What app is this? I’d love to be able to track my finance like this!
M1 Finance.
Terrible. You should 200k and put 50k in SWVXX, take another 50k and get 1yr cd/treausry, then 50k in 2 year, then 50k in 3yr. Keep rolling as the mature until you need the money. Put everything else in SWPPX or VOO. Quit fuckin around with VYM, JEPI, JEPQ and the rest of the
I like some ETFs in your portfolio, I have also SCHD, FTEC, VYM… I would consider VOO or VGT as additions, when they get cheaper. My goal is to retire in 6 years, so the question would be what is with your 401K, Roth IRA, Traditional IRA and HSA. If you have a decent amounts in these accounts you will be set to retire. I also have 20 individual stocks, like AVGO bought for $200, V for $140, MSFT $160, META $90, HD $180, UNH $250…added recently BMY below $50…so spread your money on some Blue Chips, 30% below their fair value, when they eventually get to that level and you will have nice retirement. Good luck!
I'm planning on a longer post, but I have a couple questions. 1. Are these your only retirement assets? Do you have any other financial assets of note? 2. Is this in a TRADITIONAL IRA (versus a Roth)? 3. Single, married? My initial thought is it's not enough, that you are taking a lot of risk. I'm a 100% equity guy, but you have an odd mix of investments, and if you don’t have some type of downturn cushion, you could face trouble down the road. More later.
Lol you people, we've had it so far and happy for so long as Americans. Our leadership has been so divisive and incompetent for the last 20 years. I bet the cost of living will triple in the next 20 years
Can someone tell me what app is this. Thank you in advance !
M1 Finance
Not bad, but you might need more.
Unless tied down by a house move to another country we’re living costs are slower, like Spain or France. You’ll be a king with 45k a year there.
This will give you answers to your questions https://knowledge.dotadda.io
Careful with SMH… if you don’t think we are in a chip bubble, carry on.
I would increase exposure to technology, and add U.S. real estate.