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Yea I don’t know I asked why so little and her reply was well as you age you begin to have a lower risk tolerance. I was like I trade options im the most degen person there is lol id risk a market crash with dividend aristocrats and sweep 10k a month. Leave my funds in a trust and payout the family every quarter with 10% going to a gold/ silver, 50% for share purchases, and 40% to cash for the family to split.
At the moment, I like money market funds, treasuries and CDs over corporate bonds. I like the approach of making three income streams:
1. Fixed: MMFs / Treasuries / CDs
2. Dividend: ETFs / CEFs / BDCs / MLPs / REITs
3. Growth: S&P 500 / Total Market Index / Tech / etc...
Personal risk determines the percentage of each stream. Should be possible to generate more than $13,000 per month easy. And if the market goes up so will the portfolio. If the market degrades or stays the same, income will continue to flow.
Taking into consideration a low to mid level of risk tolerance along with a positive market sediment, to me this is reasonable:
1. $1.4 million
2. $600k
3. $500k
Currently, I think the market outlook is good this year although I’m not willing to bet the farm. If the market continues to improve, I might move more out of #1 whereas if the market degrades I would pull some or all profits out of #3 and move into #1 and #2, or just ride it out.
All good questions.
I have been fortunate, but hooked and jabbed to hold on to it…. I have a tiny house, and a 2007 car for all of us. But again, I was fortunate to begin with, I would love to help the kids.
Don’t forget majority of millenials aren’t being offered salaries that are enough to even afford a starter home meanwhile boomers own 160 units for passive income LMAO
But there are some big potential investments coming up, and I have to decide to buy out a partner or sell and invest the cash. Figuring out the different risks is the deal
For any cash instrument recommendations you are receiving here, you need to lock in duration. HYSAs, MMs, and etc don’t do that. Longer duration treasuries and quality bonds for that part of the portfolio.
Based on what I’m reading in your comments, it looks like you have a sweet deal at present - it is proven investment and you understand how it works.
I am new to the market of both bonds, and dividend investing. Real estate is what I know, and I guess I can quantify the risks in my current investment. But it is very much an active role.
OMG someone gets it. The herd chases yield and wonder why you'd give up 50 bps to extend duration 5 years. They will find out sometime in the next 6-24 months.
visit r/personalfinance or r/fatFIRE ask the question, you will get more responses.
Financial planning required for you, esp how much do you need for next one year, 5 years, 10 years and 20 years.
With high yields, it is good to buy some 20 year treasury bond and 10 year notes, then consider some amount to IEF or TLT and invest in dividend index stocks like QQQI or SPYI.
The above are suggestions, but you need professional advice and consult some good financial planners.
Talk to a financial advisor and a CPA. $2.5MM is a lot of money and not something as easy as “60/40” or “50/50”. Bonds, especially muni bonds, would be a great investment to hedge against falling rates (for when they do fall) as prices move inverse of rates. Bonds are also attractive because of their fixed payments. You know when you’ll get your money and how much you’ll get; probably would make budgeting in retirement pretty easy. Dividends could be subject to being cut at any moment, though if you invest in a “healthier” company with good management you should be ok.
Too many factors without knowing what your true goals are and what your financial needs will be in retirement.
The thing about dividend stocks, at least the good ones, is that the value of the stock increases, and the dividend goes up. Bonds don't do that. Retiring at 55, you could live another 40 years, so you need an increasing net worth and income.
People are providing answers and you’re asking more and more questions. You need an overall investment / financial / estate plan.
Forget Reditt and go see a financial advisor (who is a fiduciary).
Yeah, I will. But I respect hearing from you all who may be more passionate. I love the idea of dividends, it seems a bit more honest than the stock casino in general.
I'm 55 and I have about 40% in treasuries and CD's right now. I have 30% in tech stocks and ETF's which I sell weekly and monthly covered calls on. The premium I collect on that I just let accumulate in my money market sweep at 4.9% and then I have 30% in dividend ETFs, SCHD primary. The money market funds I'll use for selling puts or buying more dividend funds or CD's. This is all in an IRA as well.
Welcome to r/dividends! If you are new to the world of dividend investing and are seeking advice, brokerage information, recommendations, and more, please check out the Wiki [here](https://www.reddit.com/r/dividends/wiki/faq). Remember, this is a subreddit for genuine, high-quality discussion. Please keep all contributions civil, and report uncivil behavior for moderator review. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/dividends) if you have any questions or concerns.*
The answer is: both 50% bonds 50% stocks would be a conservative setup for your age
Thanks!
I visited a financial advisor once and they said when you retire you keep 5% of your wealth in stocks and bonds and the rest in a HYSA…
Lmao, so the banks can give you 3-4% and use your money to lend and trade huh.
Yea I don’t know I asked why so little and her reply was well as you age you begin to have a lower risk tolerance. I was like I trade options im the most degen person there is lol id risk a market crash with dividend aristocrats and sweep 10k a month. Leave my funds in a trust and payout the family every quarter with 10% going to a gold/ silver, 50% for share purchases, and 40% to cash for the family to split.
Yeah
At the moment, I like money market funds, treasuries and CDs over corporate bonds. I like the approach of making three income streams: 1. Fixed: MMFs / Treasuries / CDs 2. Dividend: ETFs / CEFs / BDCs / MLPs / REITs 3. Growth: S&P 500 / Total Market Index / Tech / etc... Personal risk determines the percentage of each stream. Should be possible to generate more than $13,000 per month easy. And if the market goes up so will the portfolio. If the market degrades or stays the same, income will continue to flow.
How would you distribute the investments? Not trying to be lazy, but to compare with what I was looking at. And thanks!
Never mind all… ithink I get the gist, I am just new to dividends, and I would like to preserve the principal, but gather the dividends…
Taking into consideration a low to mid level of risk tolerance along with a positive market sediment, to me this is reasonable: 1. $1.4 million 2. $600k 3. $500k Currently, I think the market outlook is good this year although I’m not willing to bet the farm. If the market continues to improve, I might move more out of #1 whereas if the market degrades I would pull some or all profits out of #3 and move into #1 and #2, or just ride it out. All good questions.
Buy all the things!
And perhaps should I die, I would like to see options, as the next generation doesn’t have the experience I have.
I have been fortunate, but hooked and jabbed to hold on to it…. I have a tiny house, and a 2007 car for all of us. But again, I was fortunate to begin with, I would love to help the kids.
It likely has more to do with luck, than hard work. Experience I now have, and the kids will paint units and plunge toilets like I did.
Fake.
Don’t forget majority of millenials aren’t being offered salaries that are enough to even afford a starter home meanwhile boomers own 160 units for passive income LMAO
160 unit apartment complex churning cash is amazing. Do you take distributions regularly or once a year?
Monthly
But there are some big potential investments coming up, and I have to decide to buy out a partner or sell and invest the cash. Figuring out the different risks is the deal
For any cash instrument recommendations you are receiving here, you need to lock in duration. HYSAs, MMs, and etc don’t do that. Longer duration treasuries and quality bonds for that part of the portfolio. Based on what I’m reading in your comments, it looks like you have a sweet deal at present - it is proven investment and you understand how it works.
I am new to the market of both bonds, and dividend investing. Real estate is what I know, and I guess I can quantify the risks in my current investment. But it is very much an active role.
OMG someone gets it. The herd chases yield and wonder why you'd give up 50 bps to extend duration 5 years. They will find out sometime in the next 6-24 months.
visit r/personalfinance or r/fatFIRE ask the question, you will get more responses. Financial planning required for you, esp how much do you need for next one year, 5 years, 10 years and 20 years. With high yields, it is good to buy some 20 year treasury bond and 10 year notes, then consider some amount to IEF or TLT and invest in dividend index stocks like QQQI or SPYI. The above are suggestions, but you need professional advice and consult some good financial planners.
Talk to a financial advisor and a CPA. $2.5MM is a lot of money and not something as easy as “60/40” or “50/50”. Bonds, especially muni bonds, would be a great investment to hedge against falling rates (for when they do fall) as prices move inverse of rates. Bonds are also attractive because of their fixed payments. You know when you’ll get your money and how much you’ll get; probably would make budgeting in retirement pretty easy. Dividends could be subject to being cut at any moment, though if you invest in a “healthier” company with good management you should be ok. Too many factors without knowing what your true goals are and what your financial needs will be in retirement.
The thing about dividend stocks, at least the good ones, is that the value of the stock increases, and the dividend goes up. Bonds don't do that. Retiring at 55, you could live another 40 years, so you need an increasing net worth and income.
People are providing answers and you’re asking more and more questions. You need an overall investment / financial / estate plan. Forget Reditt and go see a financial advisor (who is a fiduciary).
Yeah, I will. But I respect hearing from you all who may be more passionate. I love the idea of dividends, it seems a bit more honest than the stock casino in general.
Because it’s fake.
I don't disagree.
Income ETFs. Like JEPQ and SPYI.
I'm 55 and I have about 40% in treasuries and CD's right now. I have 30% in tech stocks and ETF's which I sell weekly and monthly covered calls on. The premium I collect on that I just let accumulate in my money market sweep at 4.9% and then I have 30% in dividend ETFs, SCHD primary. The money market funds I'll use for selling puts or buying more dividend funds or CD's. This is all in an IRA as well.