Reallocating Funds. How should I invest for the next 10 years to retire early?
Goal: Retire in 10 years, living modestly on dividends
I began investing in March, 2020. Had about $60k in my savings account and knew nothing about investing. Got bored during Covid and started my investment journey, just randomly picking individual stocks.
In June of 2020, I read an article about Mercedes-Benz partnering up with a company that I had never heard of before to power their automated driving functions. At the time, my thought was if a company like Mercedes-Benz trusts this company, I should as well. So at the time, I randomly invested $500 in the company, NVDA. Over the next few months I would buy a few hundred dollars worth here and there. As of yesterday, I had invested a total of around $27000 over the years, and the value had grown to about $136000. I had accumulated 1,152 shares after the splits. Yesterday, I sold 850 shares for $102,000.
Now, my goal is to retire in 10-15 years. This will give me 20-25 years of service towards my pension. I currently make $104k a year, which should equate to about $4500 for my pension when I reach retirement age. I have no debt and no kids.
So my goal is to re-invest the $102000 in safer ETFS with the goal of converting these to income based investments when I decide to retire at 45 or 50 years old. I currently invest $1k per month in my brokerage, $1k a month in my 403b, $585 a month in my rothIRA, and $100 in my 457b.
If you were me, with my goal of retiring in 10 years, how would you go about doing this?
My current thought is this: Invest $50k in voo, $30k in VGT or IYW, and invest $20k in JEPQ. (I know I will owe around $13k in taxes for the gains on NVDA). Then I was thinking that I should stop investing in my 403b, and instead invest $2000 per month in additional JEPQ and let it drip. Ive run the numbers on dripcalc and even if there is no dividend growth and JEPQ stays flat, this initial $20k plus $2000 a month for 10 years should leave me with around $49000 annually in dividends before taxes, which would be plenty to live off of in SE Asia, where I plan to move. My investments in VOO and VGT could sit there and compound. With the addition of my pension and hopefully SS, I should be set for life when I reach 60 years old, with a monthly income around $7k not including the gains in my Roth and from VOO/VGT in my brokerage that I would likely convert to SCHD when I reach 60 years old as well.
Thoughts? Should I invest the $2k per month in VOO/VGT instead of JEPQ for the next 10 years to focus on growth and not have the tax burden? Should I continue investing in my 403b to lower my taxable income even though my goal is to gain as much income as possible to live off of from the ages of 45-60?