For years, I mainly judged my investment portfolio by how much it was growing. If the market dropped, I could continue investing and wait for things to recover. My salary paid the bills, so there wasn’t much pressure for my investments to generate income.
That changed when I left my full-time job in September 2026. Now, I need my portfolio to do two things: generate enough income to help support my lifestyle while continuing to grow over the long term.
After reviewing my October investments, I’ve been reminded that receiving investment income doesn’t necessarily mean I’m making money. Some parts of my portfolio are doing what I want them to do, while others haven’t worked out as expected, particularly when I look at the unrealised losses sitting alongside my dividends and options premiums.
Here’s how my portfolio looked at the end of October, what worked, what disappointed me and what I’m thinking of changing.
My Portfolio at the End of October 2026
Here’s how my portfolio was allocated as of 31 October 2026.
| Investment category | Allocation |
|---|---|
| Growth ETFs — CSPX and VALU | 55.41% |
| Option income ETFs | 25.04% |
| Individual stocks | 17.83% |
| Cash | 3.17% |
| Open options (market-value liability) | −1.59% |
| Dividend and interest accruals | 0.13% |
| Total net asset value | ~100% |
More than half my portfolio is still invested in growth ETFs. That might seem surprising considering I’m trying to generate USD 10,000 a month in investment income, but I haven’t given up on long-term growth simply because I no longer receive a salary.
One area I need to watch more carefully is my options exposure. At the end of October, I had eight short put contracts across seven positions. If all were assigned, I would need approximately USD 116,000 to purchase the underlying shares at their strike prices.
That’s a substantial potential obligation compared with the cash available in my account. My exposure to individual stocks could increase quickly if several puts were assigned around the same time.
What Worked: Growth Investments and Investment Income
I’m Still Keeping CSPX and VALU
One decision I’m comfortable with is continuing to hold CSPX and VALU. These are accumulating ETFs, meaning dividends are reinvested within the funds rather than paid directly into my account.
CSPX gives me exposure to large US companies, while VALU provides broader global exposure, including developed and emerging markets. I hold them for potential long-term growth rather than monthly income.
At 45, I need to think about what my portfolio might look like 10 or 20 years from now, not just how much cash it can generate next month. That’s why I’m keeping growth investments alongside my income-producing holdings.
That balance between growth and income remains important to me.
My Portfolio Is Generating Meaningful Income
Another encouraging part of my investment journey is that my portfolio has been generating income through dividends, option income ETF distributions and selling options.
Here’s how September and October compared.
| Income source (USD) | September | October |
|---|---|---|
| USD dividends/distributions, after tax | 1,192.26 | 942.83 |
| Hong Kong ETF distributions | 581.62 | 581.00 |
| Total distributions, after tax | 1,773.88 | 1,523.83 |
| Options income | 3,110.30 | 2,243.52 |
| Combined income | 4,884.18 | 3,767.35 |
My combined income declined from USD 4,884.18 in September to USD 3,767.35 in October. Both distributions and options income were lower, although I don’t expect investment income to be consistent every month.
An options premium can be outweighed by losses on the shares I end up owning.
For me, the bigger question isn’t whether I can generate a good income figure in one month. It’s whether I can continue generating income without taking on losses that outweigh what I’m earning.
My Savings Give Me Financial Breathing Room
One decision I’m particularly glad I made was setting aside enough savings to cover at least two years of living expenses before leaving my full-time job.
These savings are separate from my investment portfolio, which means I don’t need every month’s investment income to cover my household bills. If markets fall or my options strategy generates less income than expected, I have some flexibility.
For me, those savings are an important part of being able to invest without a regular salary..
What Didn’t Work: The Losses Behind My Investment Income
It’s encouraging to see thousands of dollars coming in through distributions and options premiums. But those figures don’t tell the whole story, especially when some investments are sitting on substantial unrealised losses.
BTCI: High Distributions, But a Significant Unrealised Loss
BTCI is one of the option income ETFs I’ve been holding to generate cash distributions. While it has been paying me regularly, the value of my holdings has also fallen significantly.
As of 31 October 2026, my BTCI position looked like this:
| BTCI position | Amount |
|---|---|
| Cost basis | USD 31,328.58 |
| Market value | USD 22,099.02 |
| Unrealised loss | −USD 9,229.56 |
| Unrealised loss on cost | −29.46% |
| Total distributions received, after tax | USD 3,865.12 |
| Total return including distributions | −USD 5,364.44 |
| Total return on cost | −17.12% |
My BTCI holding was down 29.46% on price. Including USD 3,865.12 in distributions received after tax, my total return was still a loss of USD 5,364.44, or 17.12%. The payouts softened the loss, but they did not erase it.
Nevertheless, this experience has made me more careful about evaluating income ETFs based on their distribution yields alone. Receiving monthly cash is useful, but I also need to consider what’s happening to the capital I’ve invested.
VST: When Selling Puts Leads to Share Assignments
Another example is VST. Some of my put options were assigned in September, leaving me holding shares that subsequently traded below my cost basis.
At the end of October, the position stood at:
| VST position | Amount |
|---|---|
| Cost basis | USD 29,063.54 |
| Market value | USD 27,674.00 |
| Unrealised loss | −USD 1,389.54 |
The unrealised loss was similar to September’s USD 1,393.54.
This is one of the risks of selling put options. Collecting premiums can be attractive, but when a stock falls below the agreed purchase price, I may end up owning shares worth less than what I paid. If several puts are assigned around the same time, a significant amount of capital can also become tied up in individual stocks.
I’m not planning to stop selling options altogether, but I need to pay more attention to the possible downside rather than focusing mainly on the premiums I could collect.
What I’m Thinking of Changing
I’m not planning to overhaul my portfolio overnight. However, after reviewing my investments, there are a few areas I want to approach differently.
First, I want to focus more on total returns rather than distributions alone. For my option income ETFs, I’ll look at the cash I’ve received alongside changes in the value of my holdings. A fund offering attractive monthly distributions isn’t necessarily a successful investment if its capital value keeps declining.
Second, I want to be more careful with options exposure. Having USD 116,000 in potential share purchases from my open short puts is a reminder that I need to look at my combined exposure rather than assessing each trade separately. Before opening new positions, I want to consider what would happen if several stocks fell and I faced multiple assignments.
Third, I want to reassess my individual stocks. This is particularly important for positions I’ve held after assignments or significant price declines. Instead of holding a stock simply because I want to recover my purchase price, I need to ask whether I would still want to own it today.
Finally, I want to maintain a balance between growth and income. I’m still comfortable holding CSPX and VALU alongside my income investments. Not every holding needs to pay me cash each month, especially when I still have many years of investing ahead.
These are changes I’m considering in how I manage my portfolio, rather than trades I’ve already completed.
What I’ll Be Watching Going Forward
Since leaving full-time employment, monthly investment income has become an important number for me. But I don’t want it to be the only measure I use to judge my portfolio.
Going forward, I’ll pay closer attention to my options income, cash distributions, unrealised gains and losses, total portfolio returns and exposure to individual stocks. I also want to monitor whether my portfolio allocation is becoming too concentrated in certain investments.
Ultimately, I’m interested in whether my portfolio can help support my living expenses without steadily shrinking in value. That’s a more useful measure of long-term success than simply tracking how much cash arrives in my brokerage account.
My Portfolio Is Still a Work in Progress
Leaving my full-time job has changed how I look at investing. Without a regular salary, I need to think more carefully about the income my investments generate and the risks I’m taking to achieve it.
October’s review reminded me that a portfolio can produce meaningful income while still carrying substantial unrealised losses. My goal is still to generate USD 10,000 a month in investment income, but I don’t want to reach that number by taking risks that could undermine the portfolio I’ve spent years building.
For now, I’ll continue balancing growth and income, reviewing my investments and sharing the results, including the ones that haven’t gone according to plan.
Disclaimer: This article shares my personal investment experience and is not financial advice. Investing and options trading involve risks, including capital losses and share assignments. Income and returns are not guaranteed.
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