Boost Your Retirement Income

“What if I told you that you could Double your Dividend Income for Retirement almost instantly and with almost very little risk beyond what you are presently doing ? “

What if I told you that you could Double your Dividend Income for Retirement almost instantly and with almost very little risk beyond what you are presently doing ? Would you be interested?

So you have save for many years and invested in ETFs or Mutual Funds . You feel like you have amassed a real good chunk of money for your retirement but now you are finally retired and you find yourself on a somewhat meager income to fund your retirement. You could just start selling each year to fund your retirement but that still means you are not only living off of savings but each year your income from savings will decline.

Let’s say you are above average and you have reached what you thought would be a comfortable amount for retirement. You have one million dollars to fund your retirement. You have retired at 63 years of age. Congratulations! But now that you have retired you are panicking. Your social security is $1,500 per month and your “Investments” are only provide you with an additional $25,000 per year or about $2,083 per month in income. That’s a combined income of $3,583. Not too bad but that amounts to $43,996 per year. Your working salary was $100,000 a year before retirement so you have to find ways of making due with your new reduced salary.

You could withdraw $60,000 a year to make up the shortfall. Unfortunately that means your retirement fund will be depleted in about twenty years. By 83 years of age you will be out of money and depending solely on your social security.

There is another way ! Why not consider becoming a Dividend Income Investor (DII). Dividend Income Investing means you only (or mainly) invest in individual stocks that have higher than normal dividend yields. While there are no set rules I personally try not to invest in stocks that yields  below 5% with the exception being a group of “foundation stocks”. My over all goal is a 9% yield on my portfolios.  Yes, it is very achievable and I myself can attest to it. I have done so for many years now.

By converting your Bond Funds, ETFs and Mutual Funds all into individual stocks you are accomplishing a few things that you could not before. You have eliminated the “Middlemen” ( Fund managers) , recurring broker fees and you are now free to invest in companies that meet your goals.

Just maybe you don’t feel comfortable with the 9% – Well okay, even at 6% you have doubled your income.

$1,000,000 x 6% = $60,000 per year. + $18,000 social security = $78,000 per year

$1,000,000 x 7% = $70,000 per year. +$18,000 social security = $88,000 per year

$1,000,000 x 8% = $80,000 per year. +$18,000 social security = $98,000 per year

$1,000,000 x 9% = $90,000 per year. +$18,000 social security = $108,000 per year.

I know that if you have never managed your own investments it can very very daunting. The investment community has worked hard to convince us that the stock market is so complicated and scary that only they, after you pay them, can invest your money for you. They try to over complicate things even further by trying to convince us that you must have your money invested in several types of investment vehicles to be properly divested. None of this is even remotely true. Why do you have to have a portion invested in foreign stocks for safety when most large American corporations are global? Why do you have to invest in bonds. They say they are “less risky” than stocks but I can find no evidence of this what so ever. Unless they can convince you that you are not capable of purchasing stocks and managing them yourself, they cannot make money. I am here to tell you other wise. Buying stocks is simple.

Please consider following us and reading our articles to learn how to purchase and manage your stock portfolio your self. We try very hard to make our articles not only educational but simple. By keeping things simple more can understand and follow along.

Most of you can at a minimum double your retirement income and a good percentage of you can even triple your retirement income.

Previous Articles you may Interested in:

The Difference Between Dividend Growth and Dividend Income Investors

Risk Mitigation

Making Money from “Sin Stocks”

Ever Heard of the 4% Rule?



Please feel free to share you thoughts and comments with us.




Ever Heard of the 4% Rule?

“Don’t Play by the Rules of Others ! “

Don’t Play by the Rules of Others !

The 4% Rule states that in order to make your savings last you should not withdraw more than 4% of the total amount saved. But for Dividend Income Investors does this rule apply? Dividend Income Investors don’t let someones silly and arbitrary rules interfere with our financial lives !

Let’s say you earn just over $100,000 per year in income and you have saved $1,000,000 dollars for your retirement – under the 4% rule you will be allowed to withdraw a yearly income of $40,000 from your savings account to live on. So when you add the average Social Security payment of $14,000( $28,000 for a couple) to it this gives you a total retirement income of $54,000 ($68,000 for a couple) . Not bad but really not a great amount, especially for an individual or couple that was used to bringing in over $100,000 per year in income pre-retirement. This means you have to reduce your living expense by $32,000 to $46,000 per year to make ends meet. Having been talked into investing into a mix of Bonds, Index Funds, International stocks for their “safety” you are lucky if your total return even keeps up with the 4% rule over the course of your retirement. This would be the subject of another article but these investment vehicles serve the person that sold them to you more than serving you.

The Dividend Income Investor (DII) on the other hand wants a little more out of life. As a DII investor you know you can beat this 4% rule by investing in income generating stocks of 6-10% giving you a higher income and still allowing for growth of your portfolio to keep up and even exceed inflation levels.

In our example the Dividend Income Investor has the same parameters as the average 4% rule person above. That is , He or she currently earns about $100,000 per year in income, and will get the identical amounts of Social Security. He or she has amassed $1,000,000 in savings but the difference is because they have applied the Dividend Income Investors principles to investing they know they are currently generating over 8% in dividends per year ( I am personally just under 10% in my own accounts so yes it is a reasonable assumption).

This leads me to the rate of withdrawal I plan to take personally which is 6%. An why not? I am earning well over the 6% in Dividends each year. In fact not only can I take the 6% but my style of Income Investing still allows a portfolio growth of almost the entire 4% rule !  At $1,000,000 you could safely withdraw $60,000 per year and when added to the Social Security gives you a combined income of $74,000 (Single) to $88,000 (Couple). A much more reasonable amount to cut expenses back in retirement so that you  do not have to drastically change your lifestyle.

But wait, there’s more ! Remember, you are  not withdrawing your entire yield so your portfolio is still growing and compounding on the almost 4%  of Dividend yields you are not withdrawing. This allows you to not only grow your portfolio but allows you to increase the amount of withdrawals to keep up with inflation. Your  retirement will not decrease your lifestyle but will enhance it over the course of your lifetime. Using the example above your portfolio your nest egg should grow to $1,040,000 the first year and to over $1,080,000 the second year so as you can see there is a built in “adjustment” for inflation. That extra $80,000 would produce $600 per month more based on the 9% yield.This is just in two years.  This would help ensure you can adjust your income to cover potential inflation over the years.

The moral here is to not let someone Else’s rules dictate your life. We have to take charge of our on lives and our own finances because only we know the direction we want to take in life.


Thoughts or Comments? Please share your own personal experiences with us !


Everyone Should Have a Taxable Brokerage Account

“Would you quit working just because the government taxes your income “

Do you have a Taxable Retirement Account ? Have you even thought about opening one?

Most people are content with their 401K’s, IRAs (Individual Retirement Accounts) or other Tax deferred accounts. All these a a good thing to have but I believe everyone should open Taxable Brokerage Accounts as well.

Limiting ones savings to only a Tax Free account is a huge mistake. It places restrictions on how much you can save. What if you have a windfall of Income one year ? Without a place to put it you might be tempted to view it as “free money” and waste it on things that will not provide future income for you. And if you are following the Dividend Income Investing philosophy and its “Golden rule of Dividend Investing” you are a “Sinner” !

Think about it – Would you quit working just because the government taxes your income – the answer is more than likely No. But thinking about it a little bit more there are still tax advantages to having a Taxable Investing Account. While tax laws constantly change consider these tax advantages even within a taxable account.

Some Dividend income is taxed at a more advantageous rate:

  • Long Term Capital Gains ( Investments held more than a year)
  • Qualified Dividends
  • Stocks that increase in value are not taxed until sold
  • Stocks that are inherited  and not sold establish a new “cost basis” for the benefactor.
  • The Income produced in the Brokerage account does not have Medicare and Social Security taxes taken out like your earned income.

Regardless of the tax consequences though I believe it is foolish not to establish a taxable account because it helps you save even more than you would normally. It also gives you liquidity just in case emergencies arise and helps prevent you from raiding your non taxable accounts.

When you are retired you will be forced to make RMDs ( Required minimum Distributions) from you retirement accounts. What if you do not need all the money that you are required to withdraw? What I plan to do is simply roll it into my taxable account.

Taxable Investing or Brokerage accounts are also a good place park medium term savings for future investments – say buying a home, a business venture or other type of investments. But again remember – If you don’t have to spend your Principle – then Don’t do it !

What are your thoughts ? Do  you have taxable accounts in addition  to your retirement accounts ? Please share below !


The Golden Rule of Investing

What is the “Golden Rule of Investing”?

What is the “Golden Rule of Investing”?


 “Think of all money you earn as a Potential source of Future Income”  

Don’t think in terms of how much money you have or have saved but rather how much money you can generate from what you have.

In other words, when you receive your pay check, of course you have to pay your bills. And some bills you will always have – electric, water, gas, phone, mortgage but those that you don’t is where you can get the money to finance your future.  A great example is your car. A lot of people buy a car – and of course they buy into the marketing that owning that luxury or high priced sports car is more fulfilling somehow. But what you need to consider how much future income did you give up for that little bit of prestige you got from the fancy car? That extra $ 10,000 or $20,000 you spent just stole from your future income source.  When you make purchases, no matter how small or large you should think about the true cost.  Now if you had kept in mind my Golden Rule you hopefully would have come to the conclusion that you were better off with the lower cost car and saved yourself that $20,000 dollars. If you had then let us see what it would have done for you.

Each one thousand dollars if invested at 8 % yielding stocks would provide you with $80.00 per year in income or $6.66 per month for the rest of your life.  It may not sound like much but consider that was just the one thousand. Now, let’s multiply those thousand dollars by twenty. That creates an income stream of $1,600 per year or $133.33 dollars per month! Could you use that extra $133.33 per month for the rest of your life? But wait, it doesn’t stop there! Because of “Compounding” your income stream will be constantly growing also! Most stocks pay their Dividends on a quarterly basis so we will see what happens over time to your income based on quarterly payments of Dividends.  Even though I like to express Dividend Income in Monthly Income because I believe most of us can relate to that better, the reality is that most companies pay their Dividends on a quarterly basis. So we invested in this company (we will call “Company A”) and it is paying its dividend each quarter of $.40 per share (I will explain how dividends work in more detail in a later chapter) we would earn $400 the first quarter. If you used that money to buy more shares,  your shares would increase by 20 shares so in the next quarter your dividend income would be $408.00, 2nd quarter it would be $416.16, 3rd quarter it would be $424.32 and the 4th quarter it would be $432.80! On an annual basis your income would now be $1,729.73 per year or $ 144.14 per month. This is a monthly increase of $10.81 per month!  So as you can see not only will the money you saved provide you with a monthly income for the rest of your life it will also grow and provide you increases in income for the rest of your life ! Don’t worry if you don’t understand how dividends work or the how the math works as we will be discussing that later on. The important thing for now is to understand that by investing money correctly (and not spending it unwisely) your money can grow to provide you with an income stream so that you will never have to worry about money again and insure a bright future for you and your family.

“Don’t ever spend a Cent if you are not forced to”!  – If you spend it – you lose it, but if you save it, it will pay you for the rest of your life!

Investing by not spending money is a Mind set. Place signage everywhere for you to remember if you have to – Place a sign in your office, put notes on your computer, or even in your purse or wallet if you have to , to remind yourself your goal of not spending money unnecessarily.

Think in terms of accomplishing small goals to work towards your main goal.  If you want to save $50,000 to invest – well that seems like a task that is very hard to accomplish for most of us. But if you think smaller it becomes much easier. I like to save $1000 at a time. When I reach that $1000 goal I invest it. Do that 50 times and you have reached your goal.

Another way of thinking about this is every dollar you spend unnecessarily now will cost you a lifetime of income. Spending $100 today will cost you about $16 per month in income at retirement or will reduce your income by $200 per year in retirement! That might not sound like a lot, but how many hundreds of dollars do you spend unnecessarily each year? Smokers or expensive coffee drinkers can easily spend $4 a day or $1,500 a year on their habit – that equates to 15x$100 or $240 per month in retirement income or $2,800 per year in income – Your habit for 10 years could cost you $2,400 per month or $28,000 per year in potential retirement income.  As you can see, your choices today can have “Compounded” effects on your future! This is just one small item that I used for an example, take a moment and try to reflect on your habits and determine just where you are potentially spending your future unnecessarily. Most of us will be surprised as to just how much money we are spending on things we really don’t even need.


So, in summary we should all think in terms of any money we have as being a vessel to earn future income. When you spend it ( yes, I realize sometimes it is absolutely necessary) we lose the ability for our money to generate income. Always remember the “Golden Rule of Investing” prior to making a purchase and realize what you are really giving up to buy that sill fad or knickknack that will probably add little or no value to your life.

Thanks for reading and be sure to share your thoughts and comments with us.


What is a Dividend Income Investor?

Dividend Income Investing is suited very well for Retirees.

You will discover that there are various philosophies when it comes to investing, in fact, probably hundreds or even thousands of variations on investing styles.  For our purpose of this blog  we will ignore many styles and investing in non stock portfolios such as bonds and treasuries. Some people prefer stocks that considered Value Stocks; others prefer Growth Stocks and some like Dividend Growth stocks. The Dividend growth area is where I started (in reality, I was probably more like a nomad trying to find my way around in the big investing desert) Over the years I have evolved into what I like to call a Dividend Income investor. My primary focus is producing current income.  I like to see the income rolling in each month. It serves a couple of purposes for me

  • Produces tangible Income results on a monthly basis that I can use if I need to.
  • Provides a secure platform in a declining market for me
  • Keeps my results at a steady pace. – I know how much I will earn each month on a minimum amount, that is if I have $500,000 dollars invested with an average Dividend Yield of 8 % then I know that I will receive $40,000  per year or $3,333 dollars per month minimum ( If you are reinvesting that money then it will be steadily increasing) ( No, this is Not unrealistic because I am actually generating 8-10% in my own portfolios!)
  • You can predict your income growth over periods of time.

If you use one of the other investing styles your focus is in other areas – you might be looking for your stocks intrinsic value to increase. You have to determine that a stock is undervalued, and then hope that eventually other investors see the opportunities that you saw and bid up the price of the stock for you to make your money.  For me, all I have to do is determine that the stocks I pick will be able to continue their Dividend Payouts.  If they do, using the example above, I know the minimum I will make off my investments will be $40,000 that year. Of course there could be other increases. If I am reinvesting the Dividends the income compounds, Companies could raise their dividends or traders might discover that a stock is a good bargain and drive up the price so that your investment appreciates in value.

Dividend Income Investing is suited very well for Retirees.  As a retiree your income will be limited to just social security and a pension or a 401K (if you are lucky). The majority of people will receive a check for about $1,200 per month (in today’s dollars) when they retire. That’s only $14,400 per year in income to live off of ($28,000 on average for a couple). This is not comforting at all. In fact it is depressing, especially if you don’t bother to do anything about it. There is good news however, for those of you that are reading this blog you will now have the knowledge to turn a depressing situation into one that is filled with happiness and joy.

This blog will show you ways of achieving a comfortable income in your retirement years.

Already an investor with a significant amount of savings but not earning enough income from it to retire ? Well this style of investing might be something you will want to consider.

After converting one of my portfolios to the Dividend Income method this past year I doubled the income that was being generated each month. This not that difficult to achieve as almost anyone can do it. To learn how you can do it I invite everyone to follow along with this blog and we learn the ins and outs of Dividend Income Investing and how it can help you achieve not only a better retirement but maybe even retire much sooner than you ever dreamed of !