"Is your retirement close? There's nothing to fear. There are ways to make your retirement financially secure and comfortable. Even if you have only 3 years before retirement, it is possible to build a passive income stream. You can achieve the monthly goal of earning $5,000 in dividends if you invest right. The first step is to start with high-yield exchange-traded funds (ETFs)."
"You'll need to build an investment portfolio of dividend ETFs and single-stock focused funds to generate $5,000 per month or $60,000 per year. I'm assuming you'll have $500,000 saved up for retirement, which means you'll need to achieve 12% average annual yield to generate $5,000 each month. You can allocate about 80% of the capital towards diversified ETFs with an annual yield ranging between 12% to 15% and put 20% of the retirement funds into ETFs that focus on single stocks."
"You can allocate 40% each in NEOS NASDAQ-100 High Income ETF (NASDAQ:QQQI) and NEOS S&P 500 High Income ETF Say you invest 80% of $500,000, which is $200,000 each in the ETFs. In order to retire in 3 years, you need at least a 12% average annual yield on your investment. QQQI exceeds your 12% objective with a yield of 14.56% . It has an expense ratio of 0.68% and holds 100 stocks."
A $500,000 retirement portfolio can generate $5,000 per month by targeting a 12% average annual yield, producing $60,000 annually. Allocate 80% of capital to diversified, high-yield ETFs and 20% to single-stock-focused ETFs to balance steady income and higher-yield opportunities. Recommended allocations include two high-yield diversified ETFs receiving roughly 40% each, such as NEOS NASDAQ-100 High Income ETF (QQQI) and NEOS S&P 500 High Income ETF. QQQI yields about 14.56% with a 0.68% expense ratio and holds 100 stocks. The strategy emphasizes dividend ETFs and single-stock funds to build passive income within three years.
Read at 24/7 Wall St.
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