I'm pretty much in the same boat as the OP. The frog analogy I read about in a book (written by a member here) hits home. I've been trying to find another job but finding it hard to land something new.
I've thought about this but didn't know where to start (unlike the Bogleheads 3 fund portfolios). Can you share what you're investing in for cashflow and is that in your taxable accounts?
Yes, I can tell you exactly what I am invested in (keep in mind its a work in progress).
19.37% .... Eaton Vance Tax-Advantaged Global Dividend Income (ETG)
19.30% .... Eaton Vance Tax-Managed Diversified Equity Income (ETY)
19.19% .... Eaton Vance Tax-Advantaged Global Dividend Opportunities (ETO)
19.18% .... Eaton Vance Tax-Managed Global Diversified Equity Income (EXG)
19.18% .... Eaton Vance Tax-Advantaged Dividend Income (EVT)
02.23% .... John Hancock Tax-Advantaged Dividend Inc (HTD)
01.52% .... UBS ETRACS 2xLeveraged Closed-End ETN (CEFL)
00.02% .... Cash
The ETG, ETO, EVT, and HTD are all "normal" equity CEFs, i.e. they have about 80% us/foreign stocks and 20% in preferreds/bonds. They all use leverage (around 20%-30%).
ETY and EXG are both option income CEFs trading against the s&p 500 and msci all world idx, respectively. These do not use leverage. Also note they have a high return of capital because of the options strategy, i.e. this is non-destructive ROC.
The last one, CEFL, is a 2x leveraged ETN based on the YYY index which is an index of CEFs, roughly 70% bond CEFs and 30% stock CEFs. The YYY index gets rebalanced every year and is based on discount to NAV, yield and liquidity of the CEFs.
Anyway, my newest addition is HTD which I plan to put a substantial amount into and bring it into line with the other CEFs. For the 2x levered fund, that one has some risk to it so I will probably leave it around 1.5% to 2% of portfolio. In the near-term future I plan to add MORL and BDCL which are 2x levered ETNs based on mortgage REITs and BDCs. Those will also be maxed out at 1%-2% range.
Doing all that will probably use up all my money for the rest of the year and next year. Most of it going into HTD.
I am probably one of the poorest people on these forums. I only make $60k a year as I work for a state government. The benefit though is I'm vested in a pension that will be worth around $1 million or so if I keep working another 15 years until I am 55. If I were to quit now and then start collecting on pension at 60, it would still be worth around $500k or so annuity. Actually given the interest rates are so low I am probably low estimating it.
Anyway, I would like to retire at 45. I'll have 20 years in the pension then. My investments above are all in my taxable account and throw off monthly income around $2,150ish ($25.8k something total). My current living expenses are around $28k including taxes. If I retire early I'm strongly considering expating in various inexpensive countries. In which case I'm sure I could live very comfortably off of $2k a month... i.e. I could early semi-retire right now but not completely retire as I do not have enough cushion to offset a recession just yet. I'd need to find a part-time telecommute IT job.
Oh yeah, I also have 401k (100% vanguard target retirement income fund) and Roth IRA (100% vanguard managed payout fund).