Need advice on investments

$500k will generate $20k annually at a 4% safe withdrawal rate. You are cutting it close. It might work if you reduce withdrwals after claiming SS. There is nothing magic about dividend stocks versus selling shares they often underperform and simply force you to take taxable distributions (assuming this isn't in a tax advantaged account)
You have nothing saved for retirement. Why not keep this $ untouched and let it grow to give you more cushion rather than immediately start milking it.

Downvote?

The man specifically asked about income.

I guess he could do some bitcoin or maybe short some Iraqi dinars?

He is looking for 4% yield from his post.
SCHD is 3.57% and will likely grow over time.

I guess he could buy a 4% treasury bond IF income is his only goal.

He did not say it was a 401k/IRA/etc.

We had something similar with an inheritance that wasn’t that big but big enough. We want to earn the most we can with as little risk as possible as this cash will be used for college for the kids or any opportunities that arise.

We moved to a Fidelity account where the MM holding fund generates about 4.3% now virtually risk free. Then allocated about 40% into two ETFs - growth and value. It hasn’t been quite a year yet and we’re up enough to fund my 15 yr olds car without any loss of principal cash.

We could’ve dumped the whole thing into the S&P or QQQ but didn’t want the volatility or risk as this chunk should be enough to cover big expense items through me find getting ready to retire.

ETA…after reading your post our situations are different as retirement is another bucket and we should be good there. We’re treating this as bridge money.

Keep all of it invested. At age 56, with no retirement money means you should make this a priority, regardless of how you invest it.

I would recommend s&p500 and would not use it for income anytime soon. You need more money working for you. Good job on not having debt other than your mortgage.

Is it absolutely necessary to have income from the money now? You mention rental income and could consider buying another rental. If paid off, you could generate enough cash flow. I will say that insurance has skyrocketed the past few years, so be sure to consider all costs to estimate cash flow if you go this route. Your tax returns are a good resource for real cash flow Info since you already own a rental.

QQQ covered calls is great advice. During earnings season you’ll get even higher premiums based on volatility. I’ve been doing this for 20+ years with great success.

Covered calls on QQQ is interesting; sounds a bit risky (which is what I am trying to avoid) but I will investigate.
I am starting a business since I was laid off last year because I was devoting too much time to caregiving before my parent died. So I will need some kind of income for the first year; I can take a little risk but not too much. Would like to work another 8 to 10 years and retire. Am scared of putting all my money in the market because I think it can easily go down from here.

Exactly. The number of shares you own doesn't drop.

Yep. If you “feel” the market might bump up a little the next week, write some $515 calls. Obviously you won’t make as much on the premiums, but will make more if you get called out at $515. $2/share @ 500 shares

quote:

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Am scared of putting all my money in the market because I think it can easily go down from here.

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But as long as you own the shares, you can continue making income on them, even if the Nasdaq enters a bear market.