First I'm only a few years from FRA, time has a huge advantage.
I haven't really picked a target passive income. Don't need to,
we won't spend all we can generate.
I can't get my wife to stop working.
I have a property I sold, that generates $12,000 a year in interest.
I have 6 or 7 REITs that generate about $27,000 a year in Dividends. (preferreds)
Another fund that generates over $20,000 a year in dividends.
So without trying to generate income, it is happening.
A family member wanted to borrow money to buy a property, I told wife if she wants to do it she needs her name on the deed. After purchase the property was sold on a contract. After a few years the family member wanted out. We happily got a little discount and started collecting all the interest, $12,000. Started at 11%, I renewed it at 8%.
As the market rose, I looked at REIT preferreds as a bit of a bond proxy, a little diversification
from VTSAX. So now I have the $27,000 in dividends.
Kinda fell into those, the REIT account was my play account and then it got serious.
The last fund is mostly tax deffered accounts.
I'm in a low tax bracket so no taxes on the dividends or interest.
3-1/2 years I'll get $20,000 in SS, a few more years and the wife will gets another $16,000.
So you see why I haven't picked a target passive income, we will never spend the money
that will be generated.
And, I still can't get my wife to stop working.
I have two college kids, we're making sure they work enough so we can max fund their Roth IRAs.
Putting them through college and and getting them a good start in retirement funding is priority now.
I suspect I'll be a loser on the tax bill, so I may sell all the REITs and move them in to my tax deferred accounts where they probably should be for many people. I've had an extremely low
tax bill, so having them in taxable accounts hasn't hurt me, buy next year may be different.
After looking this over, I'm going to put 110% and up not fired.