He Retired on $172,000 Per Year in Dividends from Monthly & Weekly Dividend ETFs...

About this video

• Video Title: He Retired on $172,000 Per Year in Dividends from Monthly & Weekly Dividend ETFs...
• Channel: Marcos Milla
• Speakers: Marcos Milla, Brad (Income Architect)
• Duration: 46:51

Overview

This video features an interview with Brad, also known as the "Income Architect" on YouTube, who shares his journey into income investing and how he achieved early retirement by generating $172,000 annually from dividends. He discusses his investment strategies, favorite ETFs, lessons learned, and insights into navigating the current market.

Key takeaways

• Achieved Early Retirement with Dividend Income: Brad retired early, living off approximately $172,000 per year in dividends from his investment portfolio, without relying on Social Security.
• Hybrid Investment Approach: While focused on income generation, Brad employs a hybrid strategy, maintaining a growth portfolio alongside his income-producing ETFs.
• Favorite Income ETFs: Brad highlights QQQI by NEOS, KGLD by Curve, and TDAC by Tap Alpha as his top income ETFs.
• Importance of Due Diligence: Brad emphasizes the critical need for investors to conduct thorough due diligence on their investments to avoid potential pitfalls, citing examples of funds that have underperformed.
• Shift from 4% Rule: Brad believes the traditional 4% rule for safe withdrawal in retirement is outdated, suggesting that an 8% withdrawal rate can be sustainable with current ETF yields, backed by substantial dividend distributions.
• Consideration of NAV Erosion: For retirees withdrawing income, Brad stresses the importance of avoiding ETFs with significant Net Asset Value (NAV) erosion, preferring a balance of yield and capital appreciation.
• Leveraged ETFs as Satellite Holdings: Brad views leveraged ETFs as potential "satellite" holdings to boost income, but advises caution and a smaller allocation compared to core holdings.
• Preference for Monthly Dividend ETFs: While he receives dividends daily from various sources, Brad prefers the simplicity of monthly dividend ETFs for easier budgeting in retirement.
• Learning Through the Pandemic: Brad attributes his in-depth understanding of options and covered calls to the time and resources available during the COVID-19 pandemic lockdowns.
• Following Market Trends: He advises investors to follow prevailing market trends, such as AI, while also recognizing the need to adjust their strategies as trends evolve.