How to Generate $9,000 Annual Passive Income From $100,000 Using Covered-Call ETFs and BDCs
By
Ian Cooper
The bagel they save for the regulars. Don't skim, savour.
Summary
A retiree with $100,000 seeks $750/month ($9,000/year) in passive income through monthly-paying funds. The article discusses using covered-call ETFs and a business development company (BDC) to achieve a 9% blended yield, which exceeds what traditional S&P 500 index funds or bond ladders currently offer. The strategy is presented as a solution for retirees wanting predictable monthly checks to cover recurring bills without selling shares.
Key quotes
· 5 pulledA retiree with $100,000 in a brokerage account wants a predictable monthly check covering recurring bills.
The target is $750 a month, or $9,000 a year, a 9% blended yield.
That exceeds what an S&P 500 index fund or bond ladder pays today.
So the income must come from covered-call ETFs and a business development company.
A recent r/Dividends thread asked how to turn a six-figure rollover into rent and grocery money without selling shares monthly.
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