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REDDIT

401K rolling over, use monthly divy to buy VTI / S&P?

H
Mar 2, 2025 · 02:08

In the process of rolling over an old 401K to a Traditional IRA and it’s just over 80K.

Random thought that came to me, what if I took that and bought something that pays a monthly divy (O / Main , something pretty reliable but not super risky). Then take that monthly divy to buy either VT/VTI/SPLG or something on those lines

O would be roughly 350+/- a month starting off and continue to grow based on their divy increase. That equates to 4200 a year and growing that’s then put into a market etf

Am I crazy in thinking something like that could in the long run be better than just throwing it all into VT/VTI/SPLG and letting it chill ?