Step 4

Spreading capital for income

Edit the amount, allocations and yields to estimate cash income from dividends and covered calls.

Example: $100,000 income mix

  • 40% broad index ETFs (growth, low cost)
  • 25% dividend growth stocks
  • 15% higher-yield income ETFs
  • 20% T-bills or cash (stability and opportunities)

Only write calls on stocks you are happy to sell, and keep any single stock to a size you can afford to lose.

Illustrative only. Dividends can be cut, prices fall, and premium varies with volatility. Allocation must total 100%.