A 7.4% blended yield from midstream pipelines and mortgage REITs can generate $40,800 annually to delay Social Security claims.
A $550,000 portfolio targeting a 7.4% blended yield delivers $3,400 monthly, or $40,800 annually, to cover expenses until Social Security benefits begin. The strategy aims to bridge the gap for retirees delaying claims past age 62, when benefits are reduced by up to 30%.
Delaying Social Security increases benefits by roughly 8% per year until age 70, creating a permanent raise. A 3.5% yield portfolio would require $1,165,714 to match the same annual income, highlighting the trade-off between risk and capital efficiency.
High-yield holdings like AGNC, yielding 13.4%, carry significant risk, including a 25% dividend cut in 2020 and a book value below its current share price.