While not exactly theta based, wanted some feedback.

This year I’ll hit 63 as will my wife. We are both still working. Combined salaries and bonus 350-400.

We have about 1.8 in traditional IRA’s. 1.6 of that is self directed. Another 300 in other stuff. She will have a 2.5 a month pension from a previous employer starting at 65. SS for both of us would be 7 a month at 65 if we took it

House and car are paid for (I have a company car that would of course go away but the other car is pretty new and paid for).

So, I’m mostly a covered call guy. I’m thinking of moving about 1.2M of the self directed IRA into monthly paying ETFs. Across the SP, Nas, Russell, REIT, maybe an overseas fund, and a sector based fund or two, a bond fund of good quality paper etc.

With 1.2M in that type of allocation and with it growing in a tax less environment, I could generate 10K a month just to build as cash position to live off while my real income goes to 0 as my wife and I retire.

While I’m living off that and SS, start doing my RMD while my income is low, to minimize the tax bracket hit and pay a lower rate as I convert the IRA to Roth

I’d still have about 600000 in common stock. Currently holding Lilly, NBIS, CHV and MU.

Leaving out: more or less 300k in other investments that are just stuff I have or my wife has, like stock we got while working for companies etc.

The core question: critique the ETF income producing strategy. I’d be as diversified as possible but basically giving away most of the growth. The other is going too hard for yield and eroding NAV as a result. So I’d be trying to balance out yield vs long term NAV.

Anyway, your comments would be appreciated. I didn’t name specific funds because I wanted to hear views on the idea first. The above, with SS and the pension would be about 20 a month pre tax at 65. I might hold off on taking SS until I complete the majority of my roll to Roth with the traditional IRA.