The maths is simple: divide the income you want by your portfolio's yield. The hard part is choosing a yield you can rely on for decades.
Updated October 31, 2026 · fund data as of October 30, 2026
| Yield | $500/mo | $1,000/mo | $1,500/mo | $3,000/mo |
|---|---|---|---|---|
| 2% | $300,000 | $600,000 | $900,000 | $1,800,000 |
| 3% | $200,000 | $400,000 | $600,000 | $1,200,000 |
| 4% | $150,000 | $300,000 | $450,000 | $900,000 |
| 5% | $120,000 | $240,000 | $360,000 | $720,000 |
| 6% | $100,000 | $200,000 | $300,000 | $600,000 |
| 8% | $75,000 | $150,000 | $225,000 | $450,000 |
| 10% | $60,000 | $120,000 | $180,000 | $360,000 |
Before tax. Formula: annual income ÷ yield.
| Mix | Allocation | Blended yield | Needed for $1,000/mo |
|---|---|---|---|
| Growth-tilted | 50% SCHD / 30% VYM / 20% BND | 3.0% | $403,769 |
| Balanced income | 40% SCHD / 30% JEPI / 30% BND | 4.8% | $250,417 |
| Higher income | 40% JEPI / 20% DIVO / 20% SCHD / 20% BND | 5.9% | $204,708 |
Weighted trailing yields as of October 30, 2026. Illustrations, not recommendations.
Try your own numbers in the portfolio builder, or see which months you get paid in the income visualizer.
At 10% the required portfolio looks small, but that income usually comes from option premium or credit risk, doesn't grow, and can come with a falling share price. Over a 25-year retirement, inflation cuts the buying power of a flat income by more than half at 3% a year. A lower yield that grows is often worth more than a high yield that doesn't.
$1,000 a month before tax isn't $1,000 to spend. Qualified dividends may be taxed at 0% or 15%, but option income and bond interest may be taxed at your full rate. See the tax guide. Many retirees also keep one to two years of spending in cash-like funds such as SGOV, so they never have to sell in a downturn.
About $300,000 at a 4% yield, $240,000 at 5%, or $200,000 at 6%, before tax.
About $450,000 at 4%, $360,000 at 5%, or $300,000 at 6%, before tax.
Yes, with enough capital, but most retirees combine dividends with other income such as Social Security, and a portfolio that also grows.