Generating income off $500k portfolio for non-retiree.

[COcheesehead]

I 100% agree with Exchme above.



No, I only utilize the free access. You can select month-month, and it will go to the start of the first full month of data (or that's what it appears to do).

Try the link I posted earlier, you should see the same:

https://tinyurl.com/ylhzukrm




Asking for a link is not "arguing" - it's trying to understand your data, and you still didn't provide a link. Can you do that? I think you'll find you can set it to earlier to get the start date as I described above (or at least include DEC, maybe missing the last few days of Nov).

I think you need to pay for day-to-day , but the month-month is free.



No problem, I won't. But as Exchme pointed out above, it hardly fits most people's idea of a conservative investment.

-ERD50

I posted a screenshot directly from your tool. Proof enough. You cherry picked, I did not. The tool only will take origin date data which is Jan ‘23.

I also stated when I made the recommendations that if income is the goal, here are some options. I use all of them to earn lots of coin. It’s up to the OP to decide if they are right for them.

 

[COcheesehead]

Is TSLY still a good but today? How would you know when to exit out of TSLY?

I bought more today.

 

[ERD50]

I posted a screenshot directly from your tool. Proof enough. ...

Without the link, I can't see what your inputs were. That is no 'proof'.

I think what's happening here will be obvious to the most casual observer.

-ERD50

 

[COcheesehead]

Without the link, I can't see what your inputs were. That is no 'proof'.

I think what's happening here will be obvious to the most casual observer.

-ERD50

Change the start year to 2023. Anyone can do it. That is the start of the data for TSLY. You will get the exact same results as my screen shot.
I think what is happening here will be obvious to the most casual observer.

 

[frank]

right now you can get 2k a month on cd/s at 500k paid monthly. after that it could go up or down. I have some that generate that on the amount you are talking about at credit unions.

 

[ERD50]

Originally Posted by ERD50 View Post
Without the link, I can't see what your inputs were. That is no 'proof'. ...

-ERD50

Change the start year to 2023. Anyone can do it. That is the start of the data for TSLY. You will get the exact same results as my screen shot. ...

Why would I "Change the start year to 2023."? For any investment that's only been around a short time, it is routine to use the data since inception. To choose any other date is going to be looked at as "cherry-picking" (though to be clear, I'm not assigning any motive to that, I'm just stating a fact, and that is what is causing the discrepancy in our graphs).

In post #20, I give links showing inception date of TSLY as Nov 23, 2022.

yahoo has data for TSLY going back to Nov 23, 2022.
https://finance.yahoo.com/quote/TSLY/history?p=TSLY

as does the NADAQ
https://www.nasdaq.com/market-activity/etf/tsly

Not sure where your Jan 2023 comes from. Links?

Originally Posted by COcheesehead View Post
No, I based it solely on your tool. It said I couldn’t use a November ‘22 start. There is no data that fits the 2009 start date. ....

You certainly can use a November ‘22 start, and I did - just like my 2009 (just what was in there by default), it restricts to the first full month of data, which is DEC 2022.

I provided the link (here it is again: https://tinyurl.com/ylhzukrm ) - that site has data going back to DEC2022 (you lose a few days in Nov w/o paying for day-to-day rather than the free month-to-month option).

And just to be crystal clear, here's a link with the start date at Nov 2022 - to show it can be done (same output as 2009 link, as it just resets the start point as I described):

https://tinyurl.com/ywo77e52 <<<< fixed link...

with the note: Note: The time period was constrained by the available data for YieldMax TSLA Option Income Strategy ETF (TSLY) [Dec 2022 - Sep 2023].

"Constrained", not "can't do it". My graph/data is based on that tool.


-ERD50

 

[pb4uski]

Enough!

 

[aja8888]

Enough!

Thanks, well stated.

 

[SnowballCamper]

+1 on this.

Yes. You could easily create a bond ladder with target maturity bond ETFs.

https://www.ishares.com/us/resources/tools/ibonds

An all Treasury ladder would yield 4.75%. So start with $24,000 in an online savings account and $476,000 in a 10 year ladder (2024-2033) that yields 4.75%.

Set up the online savings account to transfer $2,000 monthly to your friend's checking account to help with the rent.

When the 2024 ETF matures, transfer $24,000 of the proceeds to replenish the online savings account and invest the remainder in the 2034 issue.

Repeat annually.

Obviously rates will change but at 4.75% it would last for 96 years.

Speculating in stocks is certainly not the way for the OP to achieve the desired result.

 

[Fermion]

We are generating about this much off of our bond portion of a 401K that was rolled into a IRA and set up for 72T. It throws off $25,000 a year in interest and helps us meet the minimum poverty level for a silver ACA plan (pay $2.21 a month for a plan that would cost $1100 normally). It is the way to go IMO if you can live cheaply otherwise.

Age 53 and 54, so aways to go until SS, which in todays dollars will be around $38,000 combined if we wait until 67.

So your friend can probably make this work if they are in a LCOL area.

 

[DonnyMcJr64]

You can do a combo USHY/SPHY and get ~6% or app 3000-3500 a month very consistent and stable. Think of it as an annuity where you don't have to give away your $500k principal. Funds stay pretty consistent between $34-35 and $21-23 so your not likely to lose much if any principal and should net well above 2,000 a month after taxes. You may even want to let excess above what you need for cash-flow re-invest to boost your monthly dividends

 

[pb4uski]

^^^ And if we have recession then you are screwed. I think the OP is looking for more safety and less risk.

 

[Retired Expat]

We have done very well with rental properties. Rentals return approx 5-6_% a month net in spending money and appreciation (which only exists should we sell has us basically doubling our investment in 6 years But I use them as paycheck replacement.

 

[ychuck46]

I am trying to help a person generate $1500-2000 a month off their $500k portfolio - mainly to cover rent.
.
Income is $20k a year (yes, this has to change).

Why would your friend have ever gotten themselves into a situation that their rent is literally 100% or more of their total income? That is insane. Before you help them to increase their income they need to seriously look at changing their living arrangement. Any savings there are guaranteed versus swinging for the fences on investments.

 

[Exchme]

...No, I only utilize the free access. You can select month-month, and it will go to the start of the first full month of data (or that's what it appears to do).

Try the link I posted earlier, you should see the same:

https://tinyurl.com/ylhzukrm


I think you need to pay for day-to-day , but the month-month is free...



-ERD50

Thank you for the tip! I had never tried the month-to-month option in Portfolio Visualizer before. Your link brought up the data and the input, that made it clear how to select it.

 

[LadyIJ]

I am trying to help a person generate $1500-2000 a month off their $500k portfolio - mainly to cover rent.

I'm looking at these, mostly because I own them and it's what I'm familiar with.

DVY 4.01%
SCHD 3.70%
SWVXX 5.237% (Schwab cash)

More background...
This is the entire portfolio, about half is non-qualified, the rest is IRA money.
The person is 52.
Income is $20k a year (yes, this has to change).

I thought maybe a bond ladder?
Annuity? But then you're locked in, for better or worse.
Some sort of combination? Because of the persons age, growth is needed.

My thought is buy a condo with cash and get a better job, but at the moment, this person is stuck.

Any ideas?

I just want to say, actually doing amazing having saved that much money at that salary. Commendable - maybe should continue doing what he/she was doing!

 

[maestro]

Tell me more about this. It appears to be a covered call ETF trading only in TSLA that generates a huge monthly dividend. It would appear that if TSLA stock is going to gyrate up and down and not blast off, this might be a nice way to make money on the volatility.

However, if TSLA takes off the investor will not capture the same total return had he owned TSLA stock itself.

Have I got it?

Yes, you got it. And if Tesla craters, you have TSLQ to balance you if you're long. And if you want 'covered call strategy' in the 20 year Treasury, you have TLTW for income, All kinds of fun. Peace.

 

[Fermion]

Yes, you got it. And if Tesla craters, you have TSLQ to balance you if you're long. And if you want 'covered call strategy' in the 20 year Treasury, you have TLTW for income, All kinds of fun. Peace.

Really bad idea for safe money. What happens if TSLA drops 90% instead of 5%?

 

[COcheesehead]

Really bad idea for safe money. What happens if TSLA drops 90% instead of 5%?

I never said it was for “safe” money. I said if income is your goal…
It throws off a 54% dividend and if used properly can add some juice to your fixed income. I own it and have made good money off of it. It’s up again today.
Tesla isn’t going down 90% anytime soon either.

 

[ERD50]

Quote: Originally Posted by ERD50 View Post

...No, I only utilize the free access. You can select month-month, and it will go to the start of the first full month of data (or that's what it appears to do).

Try the link I posted earlier, you should see the same:

https://tinyurl.com/ylhzukrm

I think you need to pay for day-to-day, but the month-month is free...

-ERD50

Thank you for the tip! I had never tried the month-to-month option in Portfolio Visualizer before. Your link brought up the data and the input, that made it clear how to select it.

I'm glad it helped you out, and thanks for the acknowledgement.

That's all I was doing, trying to show posters that the free tool absolutely could be used for month-to-month analysis, you are not forced to start in JAN. And I took the time to publish the links, in an attempt to make it crystal clear and transparent. I don't understand why some posters appeared to be upset at that?

-ERD50

 

[pb4uski]

I never said it was for “safe” money. I said if income is your goal…

It throws off a 54% dividend and if used properly can add some juice to your fixed income. I own it and have made good money off of it. It’s up again today.

Tesla isn’t going down 90% anytime soon either.

If you go back to the OP, we are looking for a solution for a 52 yo who has $20k a year of income and $500k to invest for income.

The OP was thinking of a bond ladder or an annuity. That implies to me that the OP was asking for something low risk.

OTOH, COcheesehead is wealthy... $19k monthly of interest and dividends IIRC... so he can add juice like this, but I don't see it as prudent for the subject of this thread.

 

[Fermion]

I never said it was for “safe” money. I said if income is your goal…
It throws off a 54% dividend and if used properly can add some juice to your fixed income. I own it and have made good money off of it. It’s up again today.
Tesla isn’t going down 90% anytime soon either.

Never say never. Back when Covid first started I put out there what would happen if it spread past China and disrupted markets, could the S&P500 drop from the 300s to the 200s? Guess what, it did. Granted it didn't stay that way for long because of the massive massive stimulus packages but it did have that drop.

Musk plays a fairly high risk life and takes big gambles. If something big goes wrong and he isn't around, people might lose faith in Tesla and drop the valuation down to a more traditional number. I am not saying it is likely, but it isn't anywhere near 0% chance either.

 

[Qs Laptop]

I never said it was for “safe” money. I said if income is your goal…
It throws off a 54% dividend and if used properly can add some juice to your fixed income. I own it and have made good money off of it. It’s up again today.

I'm making a slow transition into fixed income securities. I do own 125 shares of TSLA itself. I bought 500 shares of TSLY to complement my stock holdings. I see it as a way to "own" more TSLA but with a monthly dividend paying component. Thanks for the tip COcheesehead.

Definitely not for conservative investors.

Tesla isn’t going down 90% anytime soon either.

No, and even if it goes down 20%, I'll still get the monthly dividends from TSLY. I'm holding TSLA for the next decade (or more) so I'm not too concerned with the up and down gyrations, which I anticipate will moderate as they continue to gain market share and more profitability.

 

[ERD50]

... ERD50's trick of setting an early date allows the program to search for the start date and he clearly has access to the higher tier.

And for a bit more clarity, over and above my recent post #45, you don't really need to use any "trick" (it's just easier that way).

The free version just doesn't give you access to partial month data. If you want to avoid the "Constrained Date" 'warning' message, simply choose start/end months that are covered.

So in the case of TSLY, if I choose DEC2022, and SEPT2023 (since we are currently mid-October, these are the first/last months of full data for that ticker), I get the exact same data/chart as if I use the 'trick' of setting an early start date.

link with DEC2022, and SEPT2023 start/end dates:

https://tinyurl.com/ymga6wjz

Portfolio Analysis Results (Dec 2022 - Sep 2023) Link PDF Excel

FYI: Getting a link to share from that site seems to be a bit tricky. After entering the data and clicking the "Analyze" button, click the "link" button in that "Portfolio Results" section. But that just copies the link to your copy/paste buffer, the URL in the address bar may still just be a generic 'results' header, it might not include the specific entries. So use that copied link. It seems to be automatically creating a short link now, I had been doing that manually - not sure if that is a site feature, or my browser doing that.

What I try to remember to do, to assure that links in my posts work for others, is to do a preview post, then copy/paste that link into a private browser window, so it isn't interacting with any of my history or cache or anything. I should see it as a poster would. Have fun with that!

-ERD50

 

[Sunset]

I just want to say, actually doing amazing having saved that much money at that salary. Commendable - maybe should continue doing what he/she was doing!

Person could have had a higher paying job and only now is in a low paying job or part-time.

Would also explain why the rent is 100% of income.

This person need another job !!