A $2.5 million portfolio requires a 7% blended yield to generate $174,000 annually, exceeding current Treasury rates.
A $2.5 million investment portfolio needs a 7% yield to produce $174,000 in annual income, outpacing the 4.5% yield on 10-year Treasuries. Schwab U.S. Dividend Equity ETF (SCHD) and JPMorgan Equity Premium Income ETF (JEPI) are used to achieve this target through a multi-asset strategy.
Current Treasury yields and federal funds rates fall short of the required 7% return, pushing investors toward higher-yielding ETFs. JEPI and its Nasdaq counterpart offer 9% yields but come with capped upside and distribution risks. Over 20 years, a disciplined rebalancing approach may outperform static high-yield strategies.
The strategy aims to support a $14,500 monthly spending goal for retirees, balancing yield, diversification, and long-term portfolio stability.