The ETFs I'll Use To Turn $130,000 into $100,000 a Year in Dividend Income

"This individual Redditor, who posted in r/dividends, is looking at how to create some wealth through passive income. Their plan, for better or worse, is to take the $130,000 they have in free capital and create a dividend-focused portfolio that can generate at least $100,000 per year in earnings. It goes without saying that this is not a small amount, and I would immediately ask them how they intend to do this because $130,000 is a lot of money for someone's income,"

"Let's assume, just for a moment, that they invested all of this money into the S&P500, which has returned an average of 11.8% percent in the last 10 years, you'd only be earning around $15,340 per year in interest, which would undoubtedly compound, but you're not getting anywhere near the six-figure mark anytime soon. For this reason, entering the dividend world and looking beyond traditional dividend stocks like Verizon and Pepsi will be necessary."

Dividend investing has regained popularity among new investors seeking passive income. An investor with $130,000 aims to generate $100,000 annually from dividends, an unrealistic target without high yields. Investing $130,000 in the S&P500 at a recent 10-year average return of 11.8% would produce about $15,340 yearly, far short of six figures. Achieving a six-figure dividend income requires pursuing higher-yield strategies and looking beyond traditional dividend names. Specialized ETFs that generate double-digit yields by selling options across major indexes, such as QQQI or SPYI, represent one suggested pathway.

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