Key insights
- An individual investor is considering investing $500 bi-weekly into dividend-paying stocks via Fidelity, aiming for $10k/year in passive income within 9 years until retirement. Given the existing portfolio's composition and time horizon, the feasibility of achieving the passive income goal is questionable, and the impact on U.S. equities is slightly negative due to potential misallocation of capital.
I have some questions
Recently, I started buying individual stock and I use Fidelity. I’m thinking that the day before payday I am going to sweep everything that’s in my checking account and put it into Fidelity and buy stock. $500 every two weeks. I am 9 years from retirement .
My 401k and brokerage is heavy for EFT, mutual funds, and metal and blue chip ( Microsoft, Apple etc). I have pension and emergency fund. Retirement should be fine.
What kind of individual stock would you buy? I was kind of looking at a stock that pays dividends. Thinking that could be a passive income when I get to retirement. Is it possible with 9 years to build a portfolio that gives a decent passive income? Decent like $10k a year so I can travel a little.
And if you have Amazon stock - sorry if it drops a smudge - they are losing that money that I am buying stock with :)