SargeX wrote: Hey Rook
Thanks for the comment.
I'm certainly not a financial advisor (although I do know more than most of them :-) and this is stockhouse, so take this comment with a grain of salt.
I think generating $125k with a $2M portfolio would be really tricky as you'd need an average yield of 6.25%. As an example, our portfolio which includes the two REITs has an average yield of 5.64%. REITs can be risky on the divy cut side so I wouldn't recommend them for your case..
I took our main spreadsheet and reduced the holdings to what I would be comfortable recommending (see below) and the averqge yield is 5.33%. On $2M, that would be $106.6k. This assumes an equal weighting in each holding. You should also note that this has quite a heavy weighting in midstream/pipelines and has a bank covered call ETF.
On the inheritance front, all we are doing is gifting the kids the money which is tax free. Our case is very simple as we don't attach any strings to how they use it, what happens to it if the couple splits up, etc.
For us, it's a fantastic way to share our good fortune as we get to see the dough being put to good use and get to see their gratitude. As an aside, they have mainly beien using it to pay down their mortgage and both are getting really close to be mortgage free at 37 and 39 years old.
Good luck with all of it and just let me know if you have any other questions.
Sarge
Stock table:
| STOCK | | Yield% |
| BCE | | 5.94 |
| BNS | | 5.92 |
| CPX | | 5.40 |
| EMA | | 5.47 |
| ENB | | 6.42 |
| FTS | | 4.28 |
| PPL | | 5.59 |
| RY | | 3.89 |
| T | | 4.85 |
| TD | | 4.06 |
| ZWB | | 6.86 |
| Avg Yld | | 5.33 |
555rookie555 wrote:
thanks for the free tutorial on DIY investing in retirement. I know there are a lot of factors but I'll ask anyway. My wife just started her psychology practice two months ago and we are now entering a stage of life where we will have extra cash, so we are currently setting our goals to 1) eliminate primary mortgage debt and 2) build our best egg up to the levels we wish to retire on.
My question is, using a similar strategy that you use, would you consider a $2 million nest egg target to be able to produce $125,000 retirement income reliably through market turbulence?
Also, is there a tax benefit to paying early inheritance? I currently know a few older guys that are structuring their inheritance and would be interested to hearing ideas how best to pass on their wealth. Thanks in advance for sharing, I really appreciate hearing how experienced people are handling their investment strategy.