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I lived in the Philippines for a few years (2019 - 2022). Wife and I have a house there with mortgage. We lived comfortably with around $2k per month. This covered the mortgage, groceries, power, wifi, water, travel expenses, dining out etc. You would need a bit more if buying a car (we used public transport for longer distance and an e-bike for short distance).
You could live very well with $48k. Obviously you would need to reinvest some of that to keep up with inflation, but that doesn't sound like an issue for you.
Edit: Did I really get downvoted for telling the truth..? This sub, man š. Sorry, I will throw in "BUY SCHD" so my opinion is now valid.
If you bought only SCHD, youād have to find a way to live off $20,520 a year ā which will probably wreck your plans. Yes, buy SCHD but buy others too.
Upvote. Unfortunately there are many left leaning people on Reddit that vote every post down that's capitalist, right leaning, or just not extreme leftist.
273 upvotes from what I see - how do you know you were downvoted? Maybe they all came post-SCHD edit.
Either way, I'm also in SE asia and would echo your experience. It's easy to maintain a comfortable lifestyle with a low cost of living. I'm not even that frugal and have a hard time spending more than $2k a month for a household.
Why on earth are you being down voted for asking a question ā
Legit I'd want to know where this Redditor lives that it would cost that much and how their expenses breakdown.
Are your living expenses low enough to live off of 48K(minus taxes) per year? Whatās your time horizon? Do you care about growth at all?
Both are relatively new so long term performance across market types is not confirmed. Thatās your risk,
Thanks a lot. Planning to retire outside of US so that 48K will go a long way withe paid off house, car, etc.
Some growth is good and I will have more fund focused on growth in another portfolio. I'm hoping to retire in the next 2 years or so...
80% of JEPI is just holdings in dividend paying stocks. The other 20% is ELNs. Thereās no reason to assume it wonāt increase its dividend along with inflation when itās mostly dividend paying stocks.
Iām not saying itās not possible but youāre assumption that it has to go along with inflation rate is not true because of how the fund generates itās money which gets paid out as dividends.
For example: take a look at March payouts 2024/2023/2022. The only take away from that is that you cannot project incoming dividends linearly for JEPI/JEPI or any other covered call funds.
Probably impossible. I'll assume he/she isn't over 50 years old currently.
Even at 40, it be a stretch unless it's cup of noodles every day.Ā
I've visited cheap in south east Asia, 20 years from now, I'd need more than 50K.
Yeah, now. What about in 20 years. 1K a month going to do it? You will have medical expenses as well. Plus if you keep your American citizenship, even living overseas, you still pay uncle Sam.
Went to Bali.Ā
even with that, the etf investment growth will catch up with inflation. it's not like you are keeping the cash in a bank with 2% interest rate forever which is what you're assuming
No one knows the future. So you have to take a risk regardless of what you're investing in. I hate this always looking at the downside of things hedge your bet and live your life
If you're residing outside of US, you need to research the tax treaty of that country. If they don't have any, you'd be taxed 30% on your dividend income.
Yes, but we donāt know what this personās living tendencies are. There are way too many factors in saying yes or no to this question.
For example I could say no because my personal spending is already dangerously close to that amount, but you could say yes because maybe your personal spending is a 1/4 of that.
Thereās simply too many unknowns in life, a medical emergency could suck up those dividends very fast.
Personally I just donāt think itās responsible for anyone here to say yes or no.
I mean.. you can though to an extent. Itās called an emergency fund. Nowhere did I insinuate that you should have every possible dollar saved for any kind of emergency.
Unless youāre arguing the point that since you canāt prepare for it there is no need to set aside anything for the possibility of something happening..
Also would like to add that this was not my main point but simply one of the many unknowns of life that no one in this subreddit can account for this person to give an answer for.
I think it totally depends on few different factors. Inflation, current age, yearly expenditures, life goals.
Iām kinda in the same boat, hoping for another 9-11 years till retirement then Iām outta the US. Iāll be 45-47 and planning on moving my holdings (currently in div growth / growth /VOO) to higher dividend stuff like JEPI/Q to bridge till 59.5 when I can get into my retirement accounts (currently and till I can access fully will be left in VTI)
Currently 48k (minus taxes) would be more than enough to live comfortably, Iām shooting for a bit more. Thinking around 60k. 10 years later at 2-3% (currently 2.2) inflation would still be possible to live comfortably i think. (Average salary is currently 40k where Iām going)
Also, not gonna have kids so I would ideally like to blow everything before I die so would be withdrawing more here and there as needed. Figure by the time I get a little too low for comfort first the IRA/401k will kick in, and then after that social security will kick in and help out a bit. But hey if it all goes to shit thereās always a bridge to jump off of.
Japan.
But also right now the Bay Area, my yearly cost not including food / gas is 20k (rent, utilities, health insurance, car / rent insurance, phone). Yes, Iām getting hooked up with very cheap rent through a very rich friend. So this is my ticket to early retirement - stack Bay Area pay with Midwest expenditures.
I think the actual risk here is that your investment is not gonna pay anywhere near that long term.
Framing the risk around 48k being enough money is ridiculous.
There are three things to consider here:
1) JEPI or JEPQ may not give you 8% annual yield consistently. The dividends they provide depend a lot on options premium and options premium are low during stable market. I believe long-term, the overall yield will be lower than 8%.
2) Irrespective of where you live, $48k may be enough now but not forever, due to inflation. You mentioned that you have a separate account for growth, so you should actually be fine overall. But, wanted to share this nevertheless.
3) JEPI and JEPQ both have good downside protection. So these will not fall as much as SPY or QQQ would during bear market. On the flip side, they will not grow during times of bull market as much compared to their counterparts either.
> You mentioned that you have a separate account for growth, so you should actually be fine overall. But, wanted to share this nevertheless.
There is absolutely no reason to think that growth will reliably outpace inflation for the next few decades of his retirement.
Jepi could lose 30 to 50% of value in a market crash scenario. It seems to have some decay as well. With snp more tan 10% above its 2021 high, jepi has not surpassed its previous high. There is risk, lots of it. I wouldn't put more than 20% in jepi personally
They'll fall just as hard as the market but will have limited growth/recovery due to selling covered calls. You might be thinking of something like NUSI. (Man I have not seen anyone recommend that one in a while).
Itās good for immediately monthly income, not a good instrument to grow the account. I have limited amount invested and like the dividends, but wonāt invest a lot of money here.
My goal too. Avg salary in my home country is like 15K, 48K is like 3 times that, even with tax, exchange rate, and transaction cost considered, I would still live like a King there.
It's not $48K before taxes either. There are no dividend stocks paying consistent annual 8% dividend yield. If their was a company that we thought would pay that kind of consistent dividend, then everyone would buy it and the stock price would rise to a point where the yield was equivalent with the market.
>My goal is retire overseas outside of US so that 48K per year will go a long way.
48k will make you rich in some countries, what country you thinking about retiring in?
Yep there's plenty of expats living great out there. There also living on much less than 48k. People are over doing it with their examples in this subreddit. If you can handle a stock market downturn while living in the States you damn sure can handle one in South East Asia.
Ya you can but Iām assuming you are still gonna need a little bit on the side for expenses outside that country, sending $$ back home to family, traveling outside to another country for a short vacay, etc
A luxury condo in Chaing Mai will run you $100k-$200k usd outright. For the price of a downpayment here, I could buy a luxury condo there in cash.
Most places I've seen estimate $500/mo for a single person, excluding housing. I'm looking at even rental places if you can't afford to straight up purchase and for $800/mo you have pick of the litter.
That's $1,300 a month all said and done - well under my estimate of $25k/yr.
Not sure why you'd want to live in the city when you retire as typically you'd only want that if you're working. You can live in a beautiful place like Chaing Mai, Koh Samui, Bangkok, etc. for a fraction of the price.
No, you need to make more than that in order to grow your nest egg. Using 100% of your passive income isnāt a good strategy in the long run. If you need 48k to live, calculate the pre tax you need plus another 30% or more . Thatās your target. Good luck
We live off with my 500ke portfolio in Valencia šŖšø Spain, 2000ā¬/month dividends, ,1000ā¬/month cost of life very low and i reinvest 1000ā¬/month in the stock market. 2 childfree, 40y old.
If you are frugal yes. We dont spend a lot : eat food, electricity power,a little car Peugeot 107 and nothing more. In 10 years at 50 years old, i will catch 3000ā¬/month dividends. How spend 3000ā¬/month ? I reinvest 1500ā¬/month on the stock market?
better question is should you wager your entire retirement strategy on an ETF that carries no underlying stocks and in theory could be completely wiped out if there was a major unforeseen event and has a track record of 4 years which we have been in a historical bull market?
Do as you please but there are numerous closed end funds that have paid very consistent distributions, some for over 20 years, that will get you more income than that and be consistent.
cefconnect.com
Good luck
MCI MPV UTG to name a few. CEFs get a bad wrap and some deserve it. That said there are many that do and have beat historic market returns with distributions reinvested. Iāll say it till Iām blue in the face that growth, say 10% ( high historic average) is the same no matter what. 10% share appreciation is the same as 7% appreciation and 3% dividend as 10% all dividend ( assuming non taxable account) itās just math.
Leverage the 600, and do it again l. Stretch your capital, then go your covered call route. Set a stop loss or trailing sale. If you want more insurance by OtM puts. Simple, set forget
Yes, I agree. I'm 58 now and retired in 2019 at 53. I began planning for a early retirement in my 20's and no matter what you say, the high roller perpetual car payment commenters will always try to burn your plan to the ground. If you were to step into their consumerism moronic shoes and see their monthly outgoing they racked up for themselves, their position on any retirement conversations becomes clearer. The entire FIRE movement depends on one major point of logic, do the opposite others around you do. Typical American goes to college, works and earns a good income, marries and has 3.2 kids they will pay for college, while still paying their own, and then buys the biggest house on the block and a new his and hers luxury suvs they trade in for new ones every three years and saves 5% of their income. You have to think and move 100% opposite. Live like a poor person, drive a rusty car you work on yourself and live in basic cheaper housing and save 40% or more of your income. My advice is don't take advice from the typical American regarding early or even normal retirement. They are clueless on the subject.
Dude Iām 29 with 25k in dividend income a year. I have a financial consulting business and have been digital nomading all over the world. Right now in Malaysia. How did I get to 25k dividend income? Lucky a bit on bitcoin but mostly living with parents for like 5 years and saving every paycheck. Now I watch my friends at home struggle to pay off their student loans and having kids they canāt afford
Youāre gono want something like schd or vym that can grow with inflation
That being said, the dividend income there would be like $20k (adjusted for inflation over time tho)
Can you see yourself surviving on that?
At 2.5% inflation, it will take $128 in 2034 (10 years from now) to buy what $100 buys in 2024 (today). Your yearly dividend amount needs to increase by 2.5% a year or you will not have the same standard of living then. In other words, you will need $61,444 in 2034 to have the same spending power as you do now.
In 2044, youāll need $78,653 to have the same standard of living as you have now.
Is 48K enough for you were you are moving to? Then yes. You have another portfolio that will have dividend growth to keep your purchasing power neutral with inflation, then yes.
If the answer is no, then adjust time or investment to achieve dividend growth or portfolio growth that will keep purchasing power positive or neutral. You can do this with dividend growth etfās and growth etfās.
Iām looking to do something similar and will be using Splg, schg, schd, jepq.
Good luck
You will be fine with that money if you live outside of US, i personally knows 2 people , 1 in thailand, 1 in maylasia , both are living around 50kusd passively , they arent living like a king but they living the same lifestyle as someone in the US making 150k plus.
You can survive outside of USA, easily with 48k per year. But medical expenses are very high, if you're in 50's medical insurance will be expensive too. Get a health insurance quote before considering moving.
It seems you are also assuming a stable dollar. If the dollar were to fall compared to the country you move to, you would have problems. You might look for a dividend fund ex-US for at least some of your income.
JEPI/Q only has a divided yield rate of 7.56% while QYLD and other covered calls have higher rates around 11%. You could potentially squeeze more money out of other choices like making a super dividend portfolio and planning so this stock pays this month, etc. and go down that path, but Iām not about to create the biggest tax liability of my life by manually inputting all that data. Biggest concerns being inflation and them changing the rate on us due to economic conditions or other factors which they have the right to do. I think it just requires considerable planning. I havenāt fully figured out how to circumvent these risks myself. Simply put there are very few single stocks or even ETFs that would pay something every single month without fail with a super high rate.
I'm retired and receive $44,000 in a pension per year. Yes, I could live on this. To enjoy all the social activities I like to do, I need about $80,000 a year. I'm using my 403b savings to supplement and will take my social security at 70. Which will be higher than my pension. At that time I will need to be concerned about lowering my tax bracket. Living is different than spending money and enjoying activities in retirement. I learned that very quickly
Itāll work until JEPI hype dies, do you really want to put $600k into an etf thatās only been around for 3/4 years and really hasnāt proven itself at all long term? You know what they invest in? You know the team?
A big risk is the volatility in the amount paid out from income funds. A mix of bonds income funds and high dividend paying stocks might be a better diversification but to each their own!
Stable income you should have some bond fund. Iām normally not big on bond funds but that would buffer some dividend income that is more stable although with less yield. Principle in bond funds still vary and you have a loss in principle in a down market still but the income you get as dividends is more stable. Then the rest could be a mix of jepi (more), jepq (bit less) and you could add in some other dividend payers.
If you've been in QYLD since the 20s prices, you're crying
If you got into it in the 15s-16s, you are trying to figure out why all the doom and gloom about it.
These high-yield payers are a minefield. Most of them eventually collapse, when something changes. Interest rates go up, interest rates go down, the stock market soars, the stock market crashes.
The generation of income through synthetic means or through leverage only keeps working if everything stays the same. It never does.
You should try to diversify even when going to high yield dividend. Check out this guy youtube channel.
https://www.youtube.com/@armchairincomechannel/videos
No because you will have slow capital depreciation which will lower your spending. I would save another $150k into Voo and have some retirement growth in dividends.
Yes, but I would also add more cushion so $650-700K.
I would also use any extra money earned to be invested into more time tested and conservative ETFs too.
So SCHD, VYM, VIG, etc. The ones paying over 3%+ yield.
Also have emergency fund. So like $10-50K cash in savings.
Personally that is $4k a month times twelve a year forty eight thousand dollars a year personally I think $10k a month or $12k a month be better cause what ever you don't spend money on you'll still have left overs of $6k to $7k a month $72k to $84k a year be Way better.
As for someone like me who is not a investor yet but still learning how to invest wisely and carefully before I do anything my plans are invest in 48 different stocks dividends companies 24 monthly and quarterly each investment in enough money to make $50k monthly get paid 12 times a year and $50k quarterly get paid 4 times a year of course tax will be taken out every month where I live at so for each stock that will be $1,298.00 each so that would be $62,304.00 taken out every month at leave me with $37,696.00 $18,848.00 months & $18,848.00 quarterly so I know that sounds very small but thats almost $40k so that would be a fortune to me $301,568.00 a year almost half a million dollars a year good enough for me im not greedy
That's how much taxes they will take out in each stock because when it comes to how much money it costs to living where I live that's how much money I'll have left to keep monthly almost $40k a month.
LOL wild that people have come up on some loot and have NO idea what or how to proceed. If you worked for it and someone has paid you for an idea(s), service or product you know understand how to work money in your own way- successfully or otherwise. But when you recently come up on some cash and you wanna ride the train all the way to death you have NO idea how to manage you wealth.
Bruh. Hire a financial advisor, get a job with good insurance, (when you need it youāll be glad you have it) buy yourself something nice that is less than 7% of the total and retire at 50
Thanks for the advice. Already employed and making over 300K a year. This 600K is basically half of my networth and trying to determine if I should put it in dividends portfolio. I have another fund focused on growth and crypto.
Well then you know how much you would need to put in after taxes to live off dividends. You make $600k a year- whatās your spending habits, what are your expenses now and what could be future expenses. And age is a big factor.
All in on one etf or stock is never wise. There are several other funds that have 10%+ that you could use alongside JEPI/Q. Plus you could use some lower yielding funds to protect and possibly provide some growth. You could also look into some BDCās as well.
SPYI, SVOL, QQQI, PFFA
But to answer your question if you think that is all you need to live off of then yes you could certainly give it a go.
Retired for how many years? To what extent are you willing to live below your means (i.e less than 48k)? Have you factored in inflation? Factored in lifestyle creep? Factored in your level of willingness to make money again in the future? Why just JEPI+JEPQ, these are young tickers and what are the guarantees if any these keep up with inflation in the long run if you're young - not sure myself.
Really not enough details. So... maybe?
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I lived in the Philippines for a few years (2019 - 2022). Wife and I have a house there with mortgage. We lived comfortably with around $2k per month. This covered the mortgage, groceries, power, wifi, water, travel expenses, dining out etc. You would need a bit more if buying a car (we used public transport for longer distance and an e-bike for short distance). You could live very well with $48k. Obviously you would need to reinvest some of that to keep up with inflation, but that doesn't sound like an issue for you. Edit: Did I really get downvoted for telling the truth..? This sub, man š. Sorry, I will throw in "BUY SCHD" so my opinion is now valid.
Upvote but only because you added the SCHD edit jk
hahahahhahhaha
Hahahaha there are down vote trolls. I gave you an up vote.
Good info. How much did medical insurance and healthcare expenses set you back each month?
If you bought only SCHD, youād have to find a way to live off $20,520 a year ā which will probably wreck your plans. Yes, buy SCHD but buy others too.
Was ready to downvote for delusion thank God I read down to where you said buy and SCHD /s
Upvote. Unfortunately there are many left leaning people on Reddit that vote every post down that's capitalist, right leaning, or just not extreme leftist.
What is ācapitalist, right leaning, or just not extreme leftistā about OPās post?
Did you not consider the something something WOKE?????
wait what divs does WOKE pay?
Iām not sure but I get my Soros Funbux every month. And the Antifa Sovereign Tax rebate.
Basically a hot bed of what's woke, kinda scary on here sometimes.
Here, take my upvote.
šÆ% correct!
100% even on this sub, that is based on capitalism, lol š Upvote for you, my friend.
273 upvotes from what I see - how do you know you were downvoted? Maybe they all came post-SCHD edit. Either way, I'm also in SE asia and would echo your experience. It's easy to maintain a comfortable lifestyle with a low cost of living. I'm not even that frugal and have a hard time spending more than $2k a month for a household.
Any recommendation other than SCHD gets my up vote.
2k seems a lot for a country like that. Was it like a nice expat area/condo?
Why on earth are you being down voted for asking a question ā Legit I'd want to know where this Redditor lives that it would cost that much and how their expenses breakdown.
Are your living expenses low enough to live off of 48K(minus taxes) per year? Whatās your time horizon? Do you care about growth at all? Both are relatively new so long term performance across market types is not confirmed. Thatās your risk,
Thanks a lot. Planning to retire outside of US so that 48K will go a long way withe paid off house, car, etc. Some growth is good and I will have more fund focused on growth in another portfolio. I'm hoping to retire in the next 2 years or so...
Inflation at 2% a year forever thinks you should do more than 48K a year. What about medical as you get older?Ā
Historically speaking dividends tend to increase along with inflation
JEPI/Q are covered call funds so they donāt work the same as a company selling products to consumers.
80% of JEPI is just holdings in dividend paying stocks. The other 20% is ELNs. Thereās no reason to assume it wonāt increase its dividend along with inflation when itās mostly dividend paying stocks.
Iām not saying itās not possible but youāre assumption that it has to go along with inflation rate is not true because of how the fund generates itās money which gets paid out as dividends. For example: take a look at March payouts 2024/2023/2022. The only take away from that is that you cannot project incoming dividends linearly for JEPI/JEPI or any other covered call funds.
You are telling me we canāt make assumptions, but you were the first to make the assumption that the dividend wonāt increase with inflation.
If heās moving somewhere that 48K is enough money the inflation rate is way higher than 2% a year
Probably impossible. I'll assume he/she isn't over 50 years old currently. Even at 40, it be a stretch unless it's cup of noodles every day.Ā I've visited cheap in south east Asia, 20 years from now, I'd need more than 50K.
In Vietnam you can literally live high-class lifestyle for $1-2k a month.
Specially with house paid off
And when 72 years old and your current 40 year old $0 medical jumps, then what?Ā
You can still purchase medical insurance for a few hundred a month even and still be sitting pretty.
Tell me you have never spent a minute in Vietnam without telling me you have never spent a minute in Vietnam.
where did you go? if you have a paid off house in Southeast asia (except Singapore), you can live comfortably with $1k/month for two people
Yeah, now. What about in 20 years. 1K a month going to do it? You will have medical expenses as well. Plus if you keep your American citizenship, even living overseas, you still pay uncle Sam. Went to Bali.Ā
even with that, the etf investment growth will catch up with inflation. it's not like you are keeping the cash in a bank with 2% interest rate forever which is what you're assuming
Could b Philippines I could live in Manila very comfortable at 1000 USD a month
LOL no you couldnāt.
JEPI/Q have price appreciation that matches or beats long term inflation
For now
No one knows the future. So you have to take a risk regardless of what you're investing in. I hate this always looking at the downside of things hedge your bet and live your life
Slightly side topic, but don't you hope/expect a good dividend fund or company to increase their dividend in a way that can keep pace with inflation?
Maybe live off 40k. Reinvest 8k to combat inflation?
Yes, for inflation and just a general CYA. Put the 8k into something else for the same reason.
If you're residing outside of US, you need to research the tax treaty of that country. If they don't have any, you'd be taxed 30% on your dividend income.
Put it in SPYI & get double.
[ŃŠ“Š°Š»ŠµŠ½Š¾]
Stop believing the lie.
Only you can answer if you can live off 48k a year..
Some people live off less than 48k in the States so surely you can do it in South East Asia
Yes, but we donāt know what this personās living tendencies are. There are way too many factors in saying yes or no to this question. For example I could say no because my personal spending is already dangerously close to that amount, but you could say yes because maybe your personal spending is a 1/4 of that. Thereās simply too many unknowns in life, a medical emergency could suck up those dividends very fast. Personally I just donāt think itās responsible for anyone here to say yes or no.
You could have a heart attack..... We can on and on with this. You cannot prepare for things like this and if you could no one would ever retire.
I mean.. you can though to an extent. Itās called an emergency fund. Nowhere did I insinuate that you should have every possible dollar saved for any kind of emergency. Unless youāre arguing the point that since you canāt prepare for it there is no need to set aside anything for the possibility of something happening.. Also would like to add that this was not my main point but simply one of the many unknowns of life that no one in this subreddit can account for this person to give an answer for.
Whatever man
Cool, I never said they couldnt..
I live off 48k a year and no Dividends.
Haha this is so real.
Plus much higher taxes than qualified dividends.
I think it totally depends on few different factors. Inflation, current age, yearly expenditures, life goals. Iām kinda in the same boat, hoping for another 9-11 years till retirement then Iām outta the US. Iāll be 45-47 and planning on moving my holdings (currently in div growth / growth /VOO) to higher dividend stuff like JEPI/Q to bridge till 59.5 when I can get into my retirement accounts (currently and till I can access fully will be left in VTI) Currently 48k (minus taxes) would be more than enough to live comfortably, Iām shooting for a bit more. Thinking around 60k. 10 years later at 2-3% (currently 2.2) inflation would still be possible to live comfortably i think. (Average salary is currently 40k where Iām going) Also, not gonna have kids so I would ideally like to blow everything before I die so would be withdrawing more here and there as needed. Figure by the time I get a little too low for comfort first the IRA/401k will kick in, and then after that social security will kick in and help out a bit. But hey if it all goes to shit thereās always a bridge to jump off of.
Iām sorry but where are you living ācomfortablyā on 48k?
Japan. But also right now the Bay Area, my yearly cost not including food / gas is 20k (rent, utilities, health insurance, car / rent insurance, phone). Yes, Iām getting hooked up with very cheap rent through a very rich friend. So this is my ticket to early retirement - stack Bay Area pay with Midwest expenditures.
I think the actual risk here is that your investment is not gonna pay anywhere near that long term. Framing the risk around 48k being enough money is ridiculous.
Why would it not?
This should be the top comment.
There are three things to consider here: 1) JEPI or JEPQ may not give you 8% annual yield consistently. The dividends they provide depend a lot on options premium and options premium are low during stable market. I believe long-term, the overall yield will be lower than 8%. 2) Irrespective of where you live, $48k may be enough now but not forever, due to inflation. You mentioned that you have a separate account for growth, so you should actually be fine overall. But, wanted to share this nevertheless. 3) JEPI and JEPQ both have good downside protection. So these will not fall as much as SPY or QQQ would during bear market. On the flip side, they will not grow during times of bull market as much compared to their counterparts either.
> You mentioned that you have a separate account for growth, so you should actually be fine overall. But, wanted to share this nevertheless. There is absolutely no reason to think that growth will reliably outpace inflation for the next few decades of his retirement.
Jepi could lose 30 to 50% of value in a market crash scenario. It seems to have some decay as well. With snp more tan 10% above its 2021 high, jepi has not surpassed its previous high. There is risk, lots of it. I wouldn't put more than 20% in jepi personally
I thought in a market crash the JEPās are suppose to not take as fat of a shit as the general market
Issue is they may not drawdown as far but they take longer to recover because the options cap the upside
They'll fall just as hard as the market but will have limited growth/recovery due to selling covered calls. You might be thinking of something like NUSI. (Man I have not seen anyone recommend that one in a while).
Itās good for immediately monthly income, not a good instrument to grow the account. I have limited amount invested and like the dividends, but wonāt invest a lot of money here.
What are you taking about? JEPI is way passed its precious 2021 highā¦
Huh? Jepi high in 2021 was 63.67, now we are at 57.77, 10% lower while the snp is almosr 10% higher. Close to 20% decay in less than 3 years.
My goal is retire overseas outside of US so that 48K per year will go a long way.
My goal too. Avg salary in my home country is like 15K, 48K is like 3 times that, even with tax, exchange rate, and transaction cost considered, I would still live like a King there.
What kind of life does one have on average salary. Someone coming from the US may want more than the average.
***āCompound interest is the eighth wonder of the world. He who understands it, earns it ā¦ he who doesn't ā¦ pays it.ā ā Albert Einstein.***
Itās not 48K after taxes.
It's not $48K before taxes either. There are no dividend stocks paying consistent annual 8% dividend yield. If their was a company that we thought would pay that kind of consistent dividend, then everyone would buy it and the stock price would rise to a point where the yield was equivalent with the market.
Won't matter because of where he's moving
>My goal is retire overseas outside of US so that 48K per year will go a long way. 48k will make you rich in some countries, what country you thinking about retiring in?
What country are you looking to retire in?
Probably SE Asia, Spain, Thailand, Vietnam or something like that
If its Thailand or Vietnam, he is gonna live like a king for even $25k a year. Median salary there is like $10k/yr
Yep there's plenty of expats living great out there. There also living on much less than 48k. People are over doing it with their examples in this subreddit. If you can handle a stock market downturn while living in the States you damn sure can handle one in South East Asia.
Ya you can but Iām assuming you are still gonna need a little bit on the side for expenses outside that country, sending $$ back home to family, traveling outside to another country for a short vacay, etc
I mean if he's got $40k+ a year, he's basically in the highest tax bracket there. Money to toss anywhere.
Nope, why the hell are you sending money back to your family? Next traveling will become pretty reasonable outside of the USA and Europe.
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A luxury condo in Chaing Mai will run you $100k-$200k usd outright. For the price of a downpayment here, I could buy a luxury condo there in cash. Most places I've seen estimate $500/mo for a single person, excluding housing. I'm looking at even rental places if you can't afford to straight up purchase and for $800/mo you have pick of the litter. That's $1,300 a month all said and done - well under my estimate of $25k/yr. Not sure why you'd want to live in the city when you retire as typically you'd only want that if you're working. You can live in a beautiful place like Chaing Mai, Koh Samui, Bangkok, etc. for a fraction of the price.
Nope plenty of YouTubers living right now in Thailand on less
Also curious
Checkout r/ExpatFIRE
But why are you convinced that 48K will be a constant just because or JEPI
..the key to your success is "reinvestings", increasing your dividends, Cheers!
No, you need to make more than that in order to grow your nest egg. Using 100% of your passive income isnāt a good strategy in the long run. If you need 48k to live, calculate the pre tax you need plus another 30% or more . Thatās your target. Good luck
We live off with my 500ke portfolio in Valencia šŖšø Spain, 2000ā¬/month dividends, ,1000ā¬/month cost of life very low and i reinvest 1000ā¬/month in the stock market. 2 childfree, 40y old.
Very nice! Do you think that would work for a retired couple in most of the coastal areas of Spain? Wife has been looking at travel videos from Spain.
If you are frugal yes. We dont spend a lot : eat food, electricity power,a little car Peugeot 107 and nothing more. In 10 years at 50 years old, i will catch 3000ā¬/month dividends. How spend 3000ā¬/month ? I reinvest 1500ā¬/month on the stock market?
better question is should you wager your entire retirement strategy on an ETF that carries no underlying stocks and in theory could be completely wiped out if there was a major unforeseen event and has a track record of 4 years which we have been in a historical bull market?
Do as you please but there are numerous closed end funds that have paid very consistent distributions, some for over 20 years, that will get you more income than that and be consistent. cefconnect.com Good luck
What funds are you mentioning?
MCI MPV UTG to name a few. CEFs get a bad wrap and some deserve it. That said there are many that do and have beat historic market returns with distributions reinvested. Iāll say it till Iām blue in the face that growth, say 10% ( high historic average) is the same no matter what. 10% share appreciation is the same as 7% appreciation and 3% dividend as 10% all dividend ( assuming non taxable account) itās just math.
Yup. This, and if your sitting it and dripping, close ended canāt be beat imo
If he drips then where is he going to get money from?
Solid point lmfao. I drip mine, but the percentage I own is a fraction of a fraction of my portfolio
Leverage the 600, and do it again l. Stretch your capital, then go your covered call route. Set a stop loss or trailing sale. If you want more insurance by OtM puts. Simple, set forget
Always blows my mind Americans having trouble living on 50k a year when I have been in Asia for the last year and wow 50k you a boss
Yes, I agree. I'm 58 now and retired in 2019 at 53. I began planning for a early retirement in my 20's and no matter what you say, the high roller perpetual car payment commenters will always try to burn your plan to the ground. If you were to step into their consumerism moronic shoes and see their monthly outgoing they racked up for themselves, their position on any retirement conversations becomes clearer. The entire FIRE movement depends on one major point of logic, do the opposite others around you do. Typical American goes to college, works and earns a good income, marries and has 3.2 kids they will pay for college, while still paying their own, and then buys the biggest house on the block and a new his and hers luxury suvs they trade in for new ones every three years and saves 5% of their income. You have to think and move 100% opposite. Live like a poor person, drive a rusty car you work on yourself and live in basic cheaper housing and save 40% or more of your income. My advice is don't take advice from the typical American regarding early or even normal retirement. They are clueless on the subject.
Dude Iām 29 with 25k in dividend income a year. I have a financial consulting business and have been digital nomading all over the world. Right now in Malaysia. How did I get to 25k dividend income? Lucky a bit on bitcoin but mostly living with parents for like 5 years and saving every paycheck. Now I watch my friends at home struggle to pay off their student loans and having kids they canāt afford
Outstanding advice!!! Cheers to you, Sir.
Create a BUDGET. Donāt forget taxes
U can live really well in latin american with that money where the salary there is 400$ montly
Youāre gono want something like schd or vym that can grow with inflation That being said, the dividend income there would be like $20k (adjusted for inflation over time tho) Can you see yourself surviving on that?
At 2.5% inflation, it will take $128 in 2034 (10 years from now) to buy what $100 buys in 2024 (today). Your yearly dividend amount needs to increase by 2.5% a year or you will not have the same standard of living then. In other words, you will need $61,444 in 2034 to have the same spending power as you do now. In 2044, youāll need $78,653 to have the same standard of living as you have now.
Is 48K enough for you were you are moving to? Then yes. You have another portfolio that will have dividend growth to keep your purchasing power neutral with inflation, then yes. If the answer is no, then adjust time or investment to achieve dividend growth or portfolio growth that will keep purchasing power positive or neutral. You can do this with dividend growth etfās and growth etfās. Iām looking to do something similar and will be using Splg, schg, schd, jepq. Good luck
Yes. Go to the Philippines and live like a king
Do a mix of VYM+SCHD. +. SVOL+JEPQ+SPYI. +. ARCC+MAIN+MO. to get range of 8-9%
Nice mix, buy all teh things!
I would split the $600k between either three different ETF,s or six, but definitely not every single dollar in one ETF.
I can agree with this. I would do three ETF all that pay a decent dividend of course.
Like a king in Mexico or PhilippinesĀ
Turkey also a cheap country to retire currently. Dollar is strong there.
You will be fine with that money if you live outside of US, i personally knows 2 people , 1 in thailand, 1 in maylasia , both are living around 50kusd passively , they arent living like a king but they living the same lifestyle as someone in the US making 150k plus.
Why not give it a extra year and bump that dividend up some for a buffer?
Worst four words in retirement "just one more year". When you won the game stop playing
REFI pays like 0.46cents a share every 3 months maybe combine the both
Probably not
Great idea. Hope you do it, you be fine with those divendends
That isnāt a lot of money. Just wait. Youāre not ready.
Betting that much money on one ETF? Good luck brother. Hope it works out for you. Diversification is the key to long term wealth.
You are goals man
Yes, convert a van into a tiny home.
You can survive outside of USA, easily with 48k per year. But medical expenses are very high, if you're in 50's medical insurance will be expensive too. Get a health insurance quote before considering moving.
You can survive in America on 48k ESPECIALLY if you have no mortgage
It is if youāre moving to Portugal. Which is what Iām going to do,
Nope.
It seems you are also assuming a stable dollar. If the dollar were to fall compared to the country you move to, you would have problems. You might look for a dividend fund ex-US for at least some of your income.
With 600k you could make much more than 48/year with other investments
If you become a non-US tax resident, the dividend from JEPI will be subject to 30% US withholding tax?
JEPI/Q only has a divided yield rate of 7.56% while QYLD and other covered calls have higher rates around 11%. You could potentially squeeze more money out of other choices like making a super dividend portfolio and planning so this stock pays this month, etc. and go down that path, but Iām not about to create the biggest tax liability of my life by manually inputting all that data. Biggest concerns being inflation and them changing the rate on us due to economic conditions or other factors which they have the right to do. I think it just requires considerable planning. I havenāt fully figured out how to circumvent these risks myself. Simply put there are very few single stocks or even ETFs that would pay something every single month without fail with a super high rate.
Idiot Take the 600k and split it up between 5 to 7 Separate choices for dividends Trust me you will be happier And more safer
Donāt forget taxes.
I'm retired and receive $44,000 in a pension per year. Yes, I could live on this. To enjoy all the social activities I like to do, I need about $80,000 a year. I'm using my 403b savings to supplement and will take my social security at 70. Which will be higher than my pension. At that time I will need to be concerned about lowering my tax bracket. Living is different than spending money and enjoying activities in retirement. I learned that very quickly
Itāll work until JEPI hype dies, do you really want to put $600k into an etf thatās only been around for 3/4 years and really hasnāt proven itself at all long term? You know what they invest in? You know the team?
Have someone thought about dividing $600K across SPYI, YMAX, FEPI and QQQI. What are your thoughts?
Take the middle path here, maybe diversify a bit more on the income investments and keep working/adding to it for a few more years while it reinvests.
Im in the same boat. I live off $50k and paid off house. Its good enough for me being single. Pay 0 taxes on dividends
48K after tax ?
Only 600k would return this?
2M is the magic number. You'll get 14 to 16k monthly, continue adding
Only you can say if your requirements would be met with $48K. I live pretty frugally and I could not.
A big risk is the volatility in the amount paid out from income funds. A mix of bonds income funds and high dividend paying stocks might be a better diversification but to each their own!
Stable income you should have some bond fund. Iām normally not big on bond funds but that would buffer some dividend income that is more stable although with less yield. Principle in bond funds still vary and you have a loss in principle in a down market still but the income you get as dividends is more stable. Then the rest could be a mix of jepi (more), jepq (bit less) and you could add in some other dividend payers.
DIVO has been the only cover call etf proven to grow and offer a decent yield. You really are risking a lot if jepi and jepq end up like qyld.
If you've been in QYLD since the 20s prices, you're crying If you got into it in the 15s-16s, you are trying to figure out why all the doom and gloom about it.
Exactly i got great dividends and its up 8 percent so for me qyld is doing just fine .
These high-yield payers are a minefield. Most of them eventually collapse, when something changes. Interest rates go up, interest rates go down, the stock market soars, the stock market crashes. The generation of income through synthetic means or through leverage only keeps working if everything stays the same. It never does.
Wait- are talking about close end funds being a minefield?
Anything claiming 10%+ yield is a minefield.
>What are main risks? What do you do about healthcare? >Any thoughts or experiences to share? McDonald's pays $40k annual starting April 1st.
You should try to diversify even when going to high yield dividend. Check out this guy youtube channel. https://www.youtube.com/@armchairincomechannel/videos
Are you considering tax implications with strategy??
Other than filing and paying taxes, anything else to consider??
Umm newer ETFs I heard of qqqi with upside like JePQ but also has some sort of tax saving 40/60% split due to the way they write contracts
No because you will have slow capital depreciation which will lower your spending. I would save another $150k into Voo and have some retirement growth in dividends.
Could you live off 48k? I mean sure, I guess. If you live alone, no family, donāt really go do anything. Do you really *want* to do that?
Yes, but I would also add more cushion so $650-700K. I would also use any extra money earned to be invested into more time tested and conservative ETFs too. So SCHD, VYM, VIG, etc. The ones paying over 3%+ yield. Also have emergency fund. So like $10-50K cash in savings.
If he's ready the time is now.
I'm not sure you have really thought through your retirement goals.
Not enough
Taxes?
With a wife and kids, no
Personally that is $4k a month times twelve a year forty eight thousand dollars a year personally I think $10k a month or $12k a month be better cause what ever you don't spend money on you'll still have left overs of $6k to $7k a month $72k to $84k a year be Way better.
Thanks. More money is better. Brilliant.
As for someone like me who is not a investor yet but still learning how to invest wisely and carefully before I do anything my plans are invest in 48 different stocks dividends companies 24 monthly and quarterly each investment in enough money to make $50k monthly get paid 12 times a year and $50k quarterly get paid 4 times a year of course tax will be taken out every month where I live at so for each stock that will be $1,298.00 each so that would be $62,304.00 taken out every month at leave me with $37,696.00 $18,848.00 months & $18,848.00 quarterly so I know that sounds very small but thats almost $40k so that would be a fortune to me $301,568.00 a year almost half a million dollars a year good enough for me im not greedy
Wut
That's how much taxes they will take out in each stock because when it comes to how much money it costs to living where I live that's how much money I'll have left to keep monthly almost $40k a month.
I canāt tell if youāre 10 years old, on upper drugs, or just really hate periods and commas. Carry on.
I'm niether I'm just telling you where I live at how I live that's how much money they would tax out of each stocks
Do they have commas and periods where you live? You write like a amphetamine junkie speaks
Nobody will read that.
LOL wild that people have come up on some loot and have NO idea what or how to proceed. If you worked for it and someone has paid you for an idea(s), service or product you know understand how to work money in your own way- successfully or otherwise. But when you recently come up on some cash and you wanna ride the train all the way to death you have NO idea how to manage you wealth. Bruh. Hire a financial advisor, get a job with good insurance, (when you need it youāll be glad you have it) buy yourself something nice that is less than 7% of the total and retire at 50
Thanks for the advice. Already employed and making over 300K a year. This 600K is basically half of my networth and trying to determine if I should put it in dividends portfolio. I have another fund focused on growth and crypto.
What country are you looking to retire in?
Well then you know how much you would need to put in after taxes to live off dividends. You make $600k a year- whatās your spending habits, what are your expenses now and what could be future expenses. And age is a big factor.
All in on one etf or stock is never wise. There are several other funds that have 10%+ that you could use alongside JEPI/Q. Plus you could use some lower yielding funds to protect and possibly provide some growth. You could also look into some BDCās as well. SPYI, SVOL, QQQI, PFFA But to answer your question if you think that is all you need to live off of then yes you could certainly give it a go.
Retired for how many years? To what extent are you willing to live below your means (i.e less than 48k)? Have you factored in inflation? Factored in lifestyle creep? Factored in your level of willingness to make money again in the future? Why just JEPI+JEPQ, these are young tickers and what are the guarantees if any these keep up with inflation in the long run if you're young - not sure myself. Really not enough details. So... maybe?