Income Investing Results - July

[Flieger]

I'm taking a page out of dickoncapecods book and changing this to a monthly thread as the original is over 540 posts now. I'll repeat post #1 as reminder, then post June month end results to start off July!

I thought it might be interesting to have a thread that those folks that have chosen Income Investing to fund retirement might share experiences, plans, investment decisions, and results so far if you so chose to divulge. This isn't intended to debate the investment choice/style as that has been done in other threads. This is for people that, at least for the time being, have made this strategy as their primary choice of income. I, for example, have a portion of total portfolio invested this way, while also continuing to have a smaller portion in Growth as "more" hedge to inflation. I'll start in the next post!

 

[COcheesehead]

Total portfolio return YTD 4.34% Sitting at an all time high.
YTD investment income $175,841
The grand total of our income YTD is about $20,000 higher since I track 16 income sources like credit card rewards, eBay sales, etc. Income that will be taxed YTD is approximately $43,000.
All numbers through Friday the 27th and include expense withdrawals YTD.

 

[Tacitus]

I'm taking a page out of dickoncapecods book and changing this to a monthly thread as the original is over 540 posts now. I'll repeat post #1 as reminder, then post June month end results to start off July!

I thought it might be interesting to have a thread that those folks that have chosen Income Investing to fund retirement might share experiences, plans, investment decisions, and results so far if you so chose to divulge. This isn't intended to debate the investment choice/style as that has been done in other threads. This is for people that, at least for the time being, have made this strategy as their primary choice of income. I, for example, have a portion of total portfolio invested this way, while also continuing to have a smaller portion in Growth as "more" hedge to inflation. I'll start in the next post!

It is a very good thread. But must acknowledge as per Waynew examples that total performance or at least sustainablility of income must also play a factor. Otherwise it is simply portfolios providing highest yields, which can be reckless. But again good thread.

 

[dickoncapecod]

EARLY CALL EXERCISE. And I thought I was so smart !
Over the past month, I sold July 3 expiry calls against NLY. I was hoping that I would be lucky and keep the call premium as well as catch to 70c dividend that goes ex tomorrow 6/30. Luckily, I realized an early call was a possibility, so I sold seriously in-the-money strikes. My AVERAGE purchase price of NLY was 18.99. So when my 18.50 calls were exercised, I only earned net 8c each. But when my (larger position) 19 calls were exercised, I earned 39c each. It was net worth doing, but my dreams of sharp players leaving me 70c/share dividend sugar plums proved just to be just dreams!
Regards, Dick

 

[Surewhitey]

Today's plan...
We're getting ~$50k from dividends, CD's & treasuries in taxable accounts which is ~40% of funds. Tax deferred is ~60%.

Being 55&61 this year, if we cut loose early, we will be in a good place to qualify for ACA subsidies or Roth conversions. Being so young and flexible with how we pay for life, we'll likely go with the ACA... A silver plan is ~$250/mo based on KFF website. DW will likely want to upgrade to gold or platinum though.

Our future RMD's won't be crazy high as far as I can calculate as we'll increase our withdrawals from the deferred accounts after 65 or so.

 

[Flieger]

It is a very good thread. But must acknowledge as per Waynew examples that total performance or at least sustainablility of income must also play a factor. Otherwise it is simply portfolios providing highest yields, which can be reckless. But again good thread.

My bold. This is what I am mostly focused on. If i can maintain my basis (or close) while generating my needed income to both cover expenses and re-invest to increase "income" for inflation concerns, that is my strategy and goal.

Flieger

 

[Flieger]

Here's my 1H25 Div result (Monday's Divs are showing in Fidelity already). I'll update the June month end Basis situation after Monday's close as.... anything can happen! (Currently showing down 1.9%, which includes my income withdrawals).

Flieger

 

[Flieger]

So, June month (and 1H25) end results.

Div's look pretty much as expected. I have a difference of about $300 in my multiple spreadsheets that I have to reconcile ($60,506 vs $60,809). That's what happens when you have multiple tracking/spreadsheet systems. It's close enough for Gov't work (as long s DOGE doesn't check it out ).

Cost Basis is not too bad. Down 1.7%, but that is after/including the living expenses income I withdrew in 1H25, which wound up being more than I had originally planned.

If I ignore that (which I know I can't do and is not 100% accurate as I would have earned more), I would be up 2.6% for the 1H25. While I underperformed the S&P and Total Market overall with my Total Portfolio according to Fidelity. I also think that IF I had not withdrawn for my Income, I would have been re-investing which would have closed the gap even more - actually quite a bit more as I withdraw a good amount....

My hope and desire is to at least stay even-steven on my basis, while increasing my "Income" (Div's) to account for inflation each year. Considering the volatility, I'm going to consider that I didn't fare too poorly for the first half of 2025 (1H25).

For now I am going to continue my Income Strategy and see where it takes me in the 2H25.

Div's for June (in post #7 as well)

Cost Basis at June Month End - 1H25 (Includes Income W/D's):

Div trajectory chart:

Flieger

 

[Flieger]

Looks like we may be in for a rough start to July....

Flieger

 

[Waynew]

June 2025 Results (Dividends only; not options income) came in strong. I updated my spreadsheet with the dividends from the money market funds but did not include any interest received, as it is not worthy of consideration. I also wanted to see if StockRover came in with a rational forecast. It wasn't bad but their income estimate for June appears to be a bit high. I will know better when I see the June 2025 statement.

This is what StockRover is forecasting based on current holdings. As you can see, June is higher in this "future projected income" than the reality.

 

[Flieger]

Sold JBBB and JAAA (total of $134k). Waiting for good entry on my mid July Ex-div plays.

Flieger

 

[COcheesehead]

Today's plan...
We're getting ~$50k from dividends, CD's & treasuries in taxable accounts which is ~40% of funds. Tax deferred is ~60%.

Being 55&61 this year, if we cut loose early, we will be in a good place to qualify for ACA subsidies or Roth conversions. Being so young and flexible with how we pay for life, we'll likely go with the ACA... A silver plan is ~$250/mo based on KFF website. DW will likely want to upgrade to gold or platinum though.

Our future RMD's won't be crazy high as far as I can calculate as we'll increase our withdrawals from the deferred accounts after 65 or so.

I’ve looked at and bought ACA policies for a few years now. I had a gold initially and now HSA compliant bronze plan. In my opinion paying the higher premium is just prepaying for medical expenses you may not incur. Having the HSA, I get to bank the money, get a nice tax write off and have a piggy bank for the future, triple tax free as long as I keep good receipts, I can use the funds for anything. So far that plan has worked and we are nearing the end of ACA eligibility.

 

[Surewhitey]

I’ve looked at and bought ACA policies for a few years now. I had a gold initially and now HSA compliant bronze plan. In my opinion paying the higher premium is just prepaying for medical expenses you may not incur. Having the HSA, I get to bank the money, get a nice tax write off and have a piggy bank for the future, triple tax free as long as I keep good receipts, I can use the funds for anything. So far that plan has worked and we are nearing the end of ACA eligibility.

The tax advantages for self funding vs company funding is less as company funding doesn't pay the SS & Medicare taxes in addition to your income tax. Self funded is after tax monies and only reducing your income tax. Either way, it's a good plan.

 

[COcheesehead]

The tax advantages for self funding vs company funding is less as company funding doesn't pay the SS & Medicare taxes in addition to your income tax. Self funded is after tax monies and only reducing your income tax. Either way, it's a good plan.

My response was assuming company funded was in the past.

 

[DuluthGA]

@Waynew You commented you have Robinhood to help show the kids the difference in it and other platforms. Are the differences in favor of Robinhood or the more traditional (Schwab.Fido.etc)?

 

[YellowSubmarine]

I am a fresh convert to sole income investing. I will maintain my growth oriented stocks, but all new revenue (coupons, dividends, interest and bond maturities) will be invested for income. In the past 19 months of this fresh paradigm, my income from securities (16k/mo) has increased 39%. I have many muni zero coupon bonds that do not show up in this cash flow until maturities. Upon maturity, I will invest in dividend producers or potentially higher yielding coupon bonds.

 

[Flieger]

I don't want to get out to far over my ski's but feeling pretty good about now.

Overall, even considering my "retirement income" withdrawals which are much higher now than they will be once SS kicks in for me, I am just about back to my start of year portfolio value. Take this out and I am up almost 3% YTD. Fingers crossed it holds!

Flieger

 

[Waynew]

@Waynew You commented you have Robinhood to help show the kids the difference in it and other platforms. Are the differences in favor of Robinhood or the more traditional (Schwab.Fido.etc)?

Robinhood is a clumsy and low value solution. I haven't tried it on my iPhone, but on the web it doesn't compare with any real platform. Their statements are terrible as well.

 

[COcheesehead]

Woke up to a new all time high. I think every day this week was a new one. Today the portfolio hit one of those big even numbers. So in celebration I will drink coffee, take the dogs for a walk and we might attend the parade downtown. So in reality life is the same.

 

[YellowSubmarine]

Same here but I got shuffleboard this morning and the parade is two blocks from the club. Can't miss the crowds or the sounds from that distance.

 

[Tacitus]

Most everyone must be making ATHs! Yield hunters, divy players, indexers, bitcoin, frequent traders, buy and holders, etc. Future, though am not a timer but ongoing investor, also imho looks very good. (Betcha Fed will ease this month too). Going to a BBQ later, think now will take a walk and maybe order another pair of sunglasses. Future looks so bright better have the shades. Nameste.

 

[Flieger]

Nice video from AI today on ARCC (BDC). Pros and Cons section is well done.

Flieger

 

[aja8888]

Nice video from AI today on ARCC (BDC). Pros and Cons section is well done.

Flieger

Thanks for the link to the Great video!

 

[Flyfish1]

Q1 and Q2 income from investment accounts is $199K and change. Of course not all of that is withdrawn and that does not count money market accounts, real estate ,etc. Perhaps more importantly, investment income is up 8.8% YOY to date. I would have reinvested more this year, but we had some CapEx home improvement projects and as mentioned previously my wife decided to blow the engine in her Audi.

 

[Flieger]

Just posted this months Div chasing trades on another thread but wanted to include here. Will update later on the Net result.

Flieger