The 58-year-old investor retired in 2021 with a portfolio worth $4.8 million. He now makes $170,000 a year in dividends and interest. “Retirement isn’t paradise, but I have zero regrets and I’m up $1.2MM since retiring, despite spending plenty during the past 3.5 years,” he said.
The investor advised others not to focus too much on yield and avoid spending from their dividend income while accumulating. “It’s just math. And the time/patience needed to accumulate, which in my case was about 35 years.
Just a tip: paying for random expenses with small amounts of dividend while you are accumulating is a great way to choke your future wealth,” he explained. Some of the key holdings in the investor’s portfolio include:
SPDR Portfolio High Yield Bond ETF, which provides exposure to USD-denominated high-yield debt and generates monthly income.
Dividend income strategies for retirees
Janus Henderson B-BBB CLO ETF, which focuses on collateralized loan obligations and yields over 7%. Janus Henderson AAA CLO ETF, which invests in high-quality collateralized loan obligations and yields over 6%. JPMorgan Equity Premium Income ETF, which invests in large-cap U.S. stocks and sells call options.
JPMorgan Nasdaq Equity Premium Income ETF, a high-yield covered call ETF that pays monthly dividends and has a yield of about 9%. NEOS S&P 500 High Income ETF, another high-yield covered call ETF that pays monthly dividends. The Virtus InfraCap US Preferred Stock ETF, which invests in preferred stocks of US companies and has a dividend yield of more than 9%.
The investor’s experience shows the power of patience and disciplined investing in generating substantial dividend income. With the right strategies, it’s possible to build a robust portfolio that provides significant passive income in retirement.
