At 34, I’m aiming for $50K a year in income—here’s how I’m planning to achieve it

A Reddit poster is 34 years old and is hoping to create an investment portfolio that will produce $50,000 in dividend income.

Here’s how the poster is doing so far, along with some tips on how to achieve this goal — or how to set your own investment income objectives and make them a reality. 

Steps to achieving $50K a year in dividend income

The poster explained that he already has around $877,000 invested and that his portfolio is currently producing $37,450 per year in dividend income. He’s earning around a 4.32% yield, and his goal is to get the amount of dividend income he receives up to $50K. 

His plan to do that is to continue to invest aggressively to get his account up to around the $1.2 million mark, so his holdings should give him the desired $50K a year. He said that while he received some of the money he already has invested from an inheritance, he has lived on a very small percentage of his income and has been investing thousands each month in order to get to the point he is at. 

He also said that he has not been chasing huge yields, but instead is investing in assets that pay a reasonable dividend and that he feels like he can confidently hold for the long haul, including a high-yield dividend ETF, as well as stock in companies like Amazon, Nike, Telekom, and Allianz. 

He’s going to stay the course with this plan until he hits his target or a portfolio producing $50K per year in income — and potentially even beyond.  

Can anyone achieve this goal?

The Redditor here was able to jumpstart his investments with an inheritance, which he said accounts for around 30% of the amount he put in. He also earns a good income in order to be able to save enough to amass $877K by the age of 34.

However, anyone can build a solid portfolio of dividends that gives them monthly and annual income. That’s especially true if they are willing to work to increase their earning potential so they have more money to invest and if they are willing to live frugally as this Redditor does in order to be able to invest. 

The key to doing this is to live on a budget that prioritizes buying assets that will help you produce passive income, and to make sure you build a diversified portfolio that gives you the dividend yields you are looking for without exposing you to too much risk. Since the poster here is pretty young, he can easily afford to take on a little more risk, including by buying shares of individual stocks, but that definitely requires more investing knowledge than just putting your money into an ETF that tracks the performance of the S&P 500. 

If you want to build a dividend portfolio of your own that produces $50K in income — or any substantial amount of annual income — it’s important to get the financial advice you need if you are not sure where to get started.

A financial advisor can help you create a personalized plan so you can make sound investments and understand the full implications of your choices, including the risk you are taking on, the tax treatment of your investments, and how your choices to focus on dividend investing will affect your ability to grow your wealth. 

This kind of professional advice can help you to make the best choices for your needs, so you can set yourself up for a secure future. 

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