Dividends income to pay for college
I have $125k saved in IRA for my kids education. My son is currently Jr. in high school so from next year, we will beed funds to pay for his college. My 2nd son is freshman in high school so in a couple of years, his expenses for college will be coming.
Since I don’t have any other sources to pay for my kids college expenses, I was think of building a high yield portfolio in IRA account as shown in the picture to pay for college expenses. I understand that I need to pay taxes at withdrawals which I am ok - but I don’t expect to pay extra 10% penalty as this withdrawal will be used for funding college expenses only.
My 1st son’s tuition expenses are going to be around $16k and he’ll be commuting to college as we’re only 30 minutes from a state university- this way we can save on extra room/boarding/meals expenses.
With that in mind, is this a good idea to proceed with this strategy?
My goal is to basically to maintain 50-60% of capital in my core positions and use extra income from covered call/income focused ETFs to pay for ongoing college expenses. So after 5-6 years if my portfolio value is for example $50k and my kids’ education is paid for, then that’s a win for me.
Am I dreaming or this a legit strategy?
I have $125k saved in IRA for my kids education. My son is currently Jr. in high school so from next year, we will beed funds to pay for his college. My 2nd son is freshman in high school so in a couple of years, his expenses for college will be coming.
Since I don’t have any other sources to pay for my kids college expenses, I was think of building a high yield portfolio in IRA account as shown in the picture to pay for college expenses. I understand that I need to pay taxes at withdrawals which I am ok - but I don’t expect to pay extra 10% penalty as this withdrawal will be used for funding college expenses only.
My 1st son’s tuition expenses are going to be around $16k and he’ll be commuting to college as we’re only 30 minutes from a state university- this way we can save on extra room/boarding/meals expenses.
With that in mind, is this a good idea to proceed with this strategy?
My goal is to basically to maintain 50-60% of capital in my core positions and use extra income from covered call/income focused ETFs to pay for ongoing college expenses. So after 5-6 years if my portfolio value is for example $50k and my kids’ education is paid for, then that’s a win for me.
Am I dreaming or this a legit strategy?