Retiree Targets $6,700 Monthly IRA Income With 8.5% Yield on $940,000 Portfolio
Updated
Updated · 24/7 Wall St. · Aug 30
Retiree Targets $6,700 Monthly IRA Income With 8.5% Yield on $940,000 Portfolio
1 articles · Updated · 24/7 Wall St. · Aug 30
Summary
$940,000 is just enough to fund an $80,400 annual IRA payout if the portfolio yields about 8.5%, making an aggressive income strategy the only option for a 76-year-old already taking RMDs.
A 3% to 4% conservative portfolio would require roughly $2.3 million, while a 6% moderate-yield approach still needs about $1.34 million, leaving the retiree short of the income target.
The cited mix allocates 35% each to Ares Capital and Altria and 30% to PIMCO Dynamic Income Fund, producing a blended yield above 9% and a small cushion over the required withdrawal level.
That higher income comes with trade-offs: Altria faces long-term cigarette-volume decline, PDI's roughly 17% yield raises NAV-erosion risk, and static high payouts can lose purchasing power to inflation.
The report says retirees should recheck actual spending, compare portfolio income with the IRS RMD schedule, and model 10-year total returns before choosing current income over dividend growth.