For years I have paid money managers and mutual fund managers to underperform, all the while charging healthy fees for their expert "super secret" management techniques. I am educated and have been a market follower for 25 years, but, as often happens, family and career have taken priority over managing my money.
I have reached a point where I can now begin to manage my own accounts and will do so. I have decided I will pursue dividend stocks with some covered call writing and cash secured puts. I am 100% cash today. My journey will begin with S&P 500 Dividend Aristocrats. I heard an interesting statistic that it is typically the 2nd, 3rd, and 4th quintile of yield in the Dividend Aristocrats that perform best, so I will start there.
Eventually I would like to build out my portfolio so that dividends will replace 100% of my income and option writing can be fun money for vacations or other such expenses.
Goal 1: 100% income replacement from dividends, $110,000 per year
Goal 2: $1,000 per month for fun costs from option premiums
Since I can reasonably expect another 20 to 25 years of work, Goal 1 is a moving target. As my income goes up my goal will follow. Goal 2 may change with time, but I would like to achieve that before aiming higher.
Dividend Income Current: $0
Option Premium Current: $0
I do not know if I will ever reach my goals, but I do know that without a plan, I certainly will not.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.