How I Plan To Invest $700,000 To Pay Bills With Dividends Forever

Summary

• A portfolio of $700,000 is large enough to produce an annual dividend income that matches the national average individual income of $64,000.
• I prioritize high-yield investments like BDCs, REITs, MLPs, and option ETFs to achieve a substantial income stream, accepting less capital appreciation in exchange for higher income.
• A diversified portfolio of 15 holdings, including tech-heavy funds and income-focused assets, can replace a job income, providing financial security and flexibility.
• This strategy isn't for early retirement, but to replace an active job income. This results in investors achieving time abundance for personal projects and reducing dependency on traditional employment.
• The sample portfolio provided sports an average weighted yield of 9.2% and outperformed the S&P 500 over the course of 2024.

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An Unconventional 'Retirement'

Notice how the title of this article specifically says to 'replace my job' and doesn't say to 'retire' with dividends forever. I think there's a major misconception that investors have when they read the word 'retire' because it's usually

Analyst’s Disclosure:I/we have a beneficial long position in the shares of STK, EPD, ARCC, CLM, O, MAIN, MO, BST, EIC, FEPI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.