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.
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