QQQI is suitable for income generation in a retirement portfolio, but its high distribution yield reflects options strategies and potential capital return rather than guaranteed total investment returns.

do you think using QQQI and SPYI as income funds by allocating 40% of the portfolio, and VOO and QQQM for the remaining 60%, is a good option?

For those who don't know, QQQI and SPYI are very good exchange-traded funds for generating income. I actually like the idea of combining QQQI and SPYI for income with VOO and QQQM for long-term growth, especially at age 55 when you have the option of early retirement.

One of the things I like most about QQQI and SPYI in particular is that they give you dividend-like payments every month, which is almost tax-free income, at least initially.

However, there is one important distinction. A 13% distribution return is not the same as a 13% investment return, and it does not automatically replace the 4% rule. These funds generate income through options strategies, and some distributions may include a return on capital.

Their payouts can also fluctuate, and the funds may lose value during periods of market downturn.

For example, if 40% of a $1 million portfolio yields a 13% distribution return, that's about $52,000 per year, or 5.2% of your total portfolio, before accounting for distributions from VOO and QQQM.