Most retirement investors chase yield without realizing the account holding those dividends matters as much as the dividends themselves. Six carefully chosen funds at a blended 9.1% yield can turn a Roth IRA into a tax-free income machine, but getting\u2026<\/p>\n
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A Roth IRA that generates $4,850 a month in retirement sounds like a big target, but the bigger advantage is where that money goes on your tax return: nowhere. WIth qualified withdrawals, that $58,200 in annual income is tax free.<\/p>\n
However, this generally takes place after age 59\u00bd, with the account open for at least five years. Outside a Roth, most income from REITs, BDCs, and option-income funds<\/a> will count as ordinary income. Inside one, the yield you see on the fund page is the yield you keep. This article builds that income from six distinct holdings and one planning number: a 9.1% blended yield.<\/p>\n Six Holdings Producing a 9.1% Blended Yield<\/p>\n The portfolio allocates 25% to JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ:JEPQ<\/a>) and spreads 15% across NEOS Nasdaq-100 High Income ETF (NASDAQ:QQQI<\/a>), Realty Income (NYSE:O<\/a>), Ares Capital (NASDAQ:ARCC<\/a> | ARCC Price Prediction<\/a>), Main Street Capital (NYSE:MAIN<\/a>) and Reaves Utility Income Fund (NYSEAMERICAN:UTG<\/a>).<\/p>\n At a 9.1% yield, you would need about $640,264 to generate around $58,200 a year.<\/p>\n Holding JEPQ QQQI O ARCC MAIN UTG At current payout rates, the mix yields about 9.5% including Main Street\u2019s supplemental dividends and 9.2% on regular payouts alone. Planning at 9.1% leaves room to cut distributions without falling below the monthly target. Turning a single investment into a predictable monthly check is the whole exercise in our free paycheck portfolio guide, which you can grab here<\/a>.<\/p>\n Where Each Dollar of Income Comes From JEPQ writes calls on Nasdaq-100 stocks<\/a> and manages $40.7 billion in net assets. Its monthly payouts this year ran from $0.47 to $0.70 per share, so the income check will change. QQQI paid $7.64 over the past year on shares near $56. In its fiscal year ending May 2025, between 94% and 99% of each QQQI distribution was classified as return of capital<\/a>. Inside a Roth, the tax label gauges how much of the payout comes from sources other than net investment income. Both funds cap upside in sharp rallies, though JEPQ still rose 20% over the past year and QQQI rose 18%.<\/p>\n Real Estate and Utilities Add Rising Payouts<\/p>\n Realty Income has raised its dividend for 115 consecutive quarters, keeps its portfolio 98.8% occupied, and raised 2026 AFFO guidance to $4.44 to $4.45 per share. Its shares fell 12% over the past month. Reaves raised its monthly payout to $0.21 from $0.20. It uses modest debt and can trade at a premium or discount to net asset value.<\/p>\n Private Credit Brings Floating-Rate Income<\/p>\n Ares Capital has paid $0.48 every quarter since 2023 from a portfolio covering 619 companies, with 71% of its portfolio at floating rates and non-accruals at 2.4%. Main Street pays $0.265 monthly plus a $0.30 supplemental, its twentieth consecutive quarterly extra. If interest rates fall, income from floating-rate loans<\/a> falls with them.<\/p>\n Payout Growth Separates a Durable Portfolio From a Fading One<\/p>\n Three holdings already show rising payouts. Main Street\u2019s regular monthly dividend rose from $0.24 in early 2024 to $0.265, and Reaves moved up from $0.19 over the same period. Ares Capital has held flat. Payouts that stay flat lose buying power each year inflation runs, so the lower-yielding holdings carry the job of keeping $4,850 meaningful in a decade.<\/p>\n Steps to Take Before Building This Portfolio<\/p>\n Map the funding path. Annual Roth contribution caps mean a balance near $640,000 usually comes from decades of compounding or Roth conversions<\/a>. If you convert, compare the tax bill at today\u2019s bracket with the tax-free income it buys later. Model how a Roth balance grows toward the $640,000 target with regular annual contributions and reinvested returns:<\/p>\n
\nWeight
\nCapital
\nCurrent Yield
\nAnnual Income<\/p>\n
\n25%
\n$160,066
\n11.1%
\n$17,838<\/p>\n
\n15%
\n$96,040
\n13.6%
\n$13,027<\/p>\n
\n15%
\n$96,040
\n6.0%
\n$5,780<\/p>\n
\n15%
\n$96,040
\n10.2%
\n$9,777<\/p>\n
\n15%
\n$96,040
\n7.8%
\n$7,526<\/p>\n
\n15%
\n$96,040
\n7.1%
\n$6,862<\/p>\n
\nNasdaq Option Premiums Fund 40% of the Portfolio<\/p>\n
\nStress test the income. Rerun the math using JEPQ\u2019s lowest monthly payout of the past year, $0.45, and Main Street without supplementals. Find out how far monthly income drops before it misses $4,850.
\nTrack total return alongside yield. Realty Income\u2019s shares fell 5% over the past year while JEPQ gained. Checking each holding\u2019s price and payout once a year shows whether the principal is holding up or quietly shrinking.<\/p>\n