This is the Lowest Amount Needed to Live off Dividends! (How Much to Live off Dividends)

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  • Опубликовано: 21 сен 2024

Комментарии • 674

  • @Dividendology
    @Dividendology  Год назад +37

    Link to download my spreadsheets: tickerdata.com/
    Get a $50 coupon + 7 day free trial to Seeking Alpha: seekingalpha.me/Dividendology
    Join my free newsletter! dividendology.substack.com/

    • @he8535
      @he8535 11 месяцев назад

      40 years I'm definitely dieing before then

    • @andrewmorales5485
      @andrewmorales5485 10 месяцев назад +1

      I was wondering if it's possible to choose to invest in 48 different stocks dividend companies and invest enough money to make $5k to $10k in each of them so 48 times that amount that's $240k to $480k that's good enough.

    • @andrewmorales5485
      @andrewmorales5485 10 месяцев назад

      Or to make it easier invest enough to make 975 in 48 different stocks dividends companies holding

    • @jedimasterham2
      @jedimasterham2 9 месяцев назад +1

      Ideally $1 million, but $250k covers over $1,000

    • @andrewmorales5485
      @andrewmorales5485 9 месяцев назад

      @@jedimasterham2 I could make $250k four times a year I be very happy

  • @Mark99PERU
    @Mark99PERU 5 месяцев назад +447

    Drink every time he says dividends

    • @DeinoTV
      @DeinoTV 5 месяцев назад +1

      Hahahha

    • @FlorinBarbu-c1v
      @FlorinBarbu-c1v 5 месяцев назад +2

      I can’t keep up !!!

    • @xavierjones6852
      @xavierjones6852 4 месяца назад +10

      I did and now I have alcohol poisoning

    • @davidvitali7247
      @davidvitali7247 4 месяца назад +2

      Doo0nt feckin telll mi wha do do yu drunk wen he says dollars how bout dat lmao

    • @TheMrAssassinchillz
      @TheMrAssassinchillz 4 месяца назад +3

      It’s been 1 minute I already feel myself blacking out 😪

  • @blaytn
    @blaytn 4 месяца назад +304

    If I could afford a $1,000 monthly contribution to investments then I wouldn’t even need to click on a financial advice video lmao

    • @dr.bendover-md
      @dr.bendover-md 4 месяца назад

      Make more money.

    • @bassheadunion
      @bassheadunion 4 месяца назад +54

      its this kind of logic that will keep you poor, if you dont have the mentality to have "excess money" work for you rather than working for your money, then you will forever be a slave to the system. the rich are rich for many reasons, whether they inherited it or not, they all make their money work for them.

    • @thegreatyeetus4893
      @thegreatyeetus4893 4 месяца назад +17

      ​@bassheadunion and how much do you make? You sound like you were raised middle to high class.

    • @blaytn
      @blaytn 4 месяца назад +26

      @@bassheadunion Don’t get me wrong, I’m all for saving up, being frugal, and making my excess money work for me. But anyone who can feasibly have $1000 excess or even $500 excess a month is doing well enough not to understand the struggles of the “rat race”

    • @bassheadunion
      @bassheadunion 4 месяца назад

      @@thegreatyeetus4893 i wish this was true, my parents def do not have money, never taught me anything about life and i struggled hard, first marriage i was cash broke constantly and couldnt stay in a place even a year cuz of job loses and such. My second marriage now i have money and that is due to me investing my time and money into her since she had a better career path, we both had low credit scores 6 years ago, i was able to make our halfway decent incomes work to their maximum about 70-80k each, raised our credit while buying my first home, sold that less than 3 years later making about 300k, taking that money and using that to reinvest in crypto and etfs while also furthering her career, from a nurse to now an np, normally np makes up to 150k a year, shes specialized in wounds so i negotiated her first contract to 225k yr, we left that company less than a year and i negotiated her next company to over 300k, we left that company to a company we see growth with and are investing in so we are on track to over million in next year. All this is to say, i have always known it takes money to make money, what you do with that money makes a huge difference, having small goals with a plan and large goals with a plan is how you get there. Also i have not worked my union job in over 3 years i know just manage our money and goals. So please make a plan, if you are struggling, which i totally understand especially in bidens econmony, how can i make more money rn, is where i am working a job or a career and where will this career take me, the same goes for your spouse. If you need a career a union is always a good place to go, i never wanted to be in constuction but as a younger man that is what made financial sense and i dont regret it. If college is what you think fits as long as you have a clear line of site of the endgame then its not a waste of money. Hope this helps

  • @jas-ve7bg
    @jas-ve7bg Год назад +177

    Look a thousand a month would be ideal to contribute, but most of us that are just starting are probably looking at between 100 to 500 a month to start

    • @everlonggaming1966
      @everlonggaming1966 11 месяцев назад +45

      You guys have money left after you pay your bills? Wow

    • @LegDayLas
      @LegDayLas 11 месяцев назад +12

      @@everlonggaming1966 You should prob try creating less bills ;D

    • @everlonggaming1966
      @everlonggaming1966 11 месяцев назад +18

      @@LegDayLas this was ment to be a joke. But ill play along, i guess i could do without food, shelter, clothing, transportation, water, and power.

    • @seifeldin94
      @seifeldin94 11 месяцев назад +16

      ​@@everlonggaming1966Sometimes I feel as someone living in what some call a third world country with much lower income (difference currency rates compared to the dollar) that on average for life necessities we're doing better than the average american. I don't know why the average american is struggling so much and I wish things get better for you and for us as well.

    • @jonasstahl9826
      @jonasstahl9826 11 месяцев назад +10

      ​@@seifeldin94Because many Americans buy big cars and big houses. A truck or SUV are cool but cost much more than, lets say an Toyota Corolla.
      Same with house a 6 room house for a family of 4 is enough the but you dont need to have 2000 square foot, you can have the same amount of rooms with like 1300 square foot.

  • @mathewrandolph2301
    @mathewrandolph2301 Год назад +204

    In the DRIP scenario you're not allowed to withdraw money. You'd have to sacrifice some of that continuous compounding at some point if you wanted to live off dividends. After you reached that breakpoint you'd re-invest enough to keep you above. I would be interested to see that point at which you can begin to withdraw those dividends without losing purchasing power.

    • @Loft817
      @Loft817 Год назад

      That will be for your kids when you are dead

    • @pauobunyon9791
      @pauobunyon9791 11 месяцев назад +15

      Just take it all ....its not gonna affect your gains or losses. Then pass it on your portfolio to your kids and grandkids at an upgraded price and tell them to drip till they get old .

    • @mightymulatto3000
      @mightymulatto3000 10 месяцев назад +6

      There are capital gains to consider too. If I were to buy PMO at $8.60 per share and have about 9000 shares making $320 a month in dividend income; one has to wonder if my 9000 shares were suddenly worth $14.
      Do I realize a capital gains of $45,000 or not?
      My guess is that you absolutely have to sell some shares and simply reinvest when the security falls back to below $9 per share.

    • @accountbertolini7652
      @accountbertolini7652 9 месяцев назад +13

      You DRIP until the dividends pay enough for your retirement. After that, spendthe dividends on living expenses instead of reinvesting.

    • @marklefkowitz4385
      @marklefkowitz4385 8 месяцев назад +6

      Losing, not loosing, Junior

  • @JoseFlores-xh5cj
    @JoseFlores-xh5cj 11 месяцев назад +236

    My yearly goal is to work less hours than the previous year. Age 18 I was working 66hrs a week, by age 28 I was working 56hrs a week, by age 32 I was working 45hrs a week. In 2024 my goal is to just work 40hrs a week, thanks to dividends I'm able to spend less time at my job and more at home.

    • @sat_lok_
      @sat_lok_ 9 месяцев назад +23

      40 hrs a week is perfect man. It’s a good life balance. Soon enough you’ll be working even less or something that is not really stressful.

    • @AlphaRuledByVenus6978
      @AlphaRuledByVenus6978 6 месяцев назад +3

      ✊🏽I’m with you ,that’s why investing is important…On My Journey 🎉

    • @vDungeon
      @vDungeon 6 месяцев назад +10

      40 hours is still huge. But i see what you mean. ❤

    • @fredoman2683
      @fredoman2683 6 месяцев назад +1

      Do you mind sharing how you invested?

    • @JoseFlores-xh5cj
      @JoseFlores-xh5cj 6 месяцев назад +15

      @fredoman2683 I unload on ETFs on the month of September and October, historically the stock market tends to be red during those months so you're most likely to buy the stock when it's on its lowest point. I invested 10% of what I had saved up those 9-10 months, so it's about $7k a year, with a dividend yield of 11-13%. I'd saying I add about $700-$800 on dividend income every year, do it routinely every year starting when I was 20, by age 30 you can start having around $10k of dividends which where I live covers 5-6 months of utilities and groceries.

  • @bryanpilger4338
    @bryanpilger4338 11 месяцев назад +156

    You should never expect to live purely off of dividends. If you ever get to that point, then you are probably pretty rich either way and will live comfortably regardless. Your goal should be to invest so that your dividend income will complement any other sources of income that you are generating.

    • @LegDayLas
      @LegDayLas 11 месяцев назад +17

      If you are generating a source of income than you are not retired (unless ofc it is completely passive- ie you sold a book or some shit).
      The realistic goal is to live off dividends and asset sales combined long enough to reach death. If you live on dividend alone while that is amazing, it results in a very large account you take to your grave. Will be nice for your kids to squander it at least.

    • @thebes56
      @thebes56 11 месяцев назад +4

      Nailed it.

    • @sat_lok_
      @sat_lok_ 9 месяцев назад +5

      @@LegDayLasExactly. Let the kids enjoy it later while we enjoy a nice retirement on passive income.

    • @DTM45
      @DTM45 6 месяцев назад

      Good words.

    • @adamsc9049
      @adamsc9049 6 месяцев назад

      Nailed it!

  • @moudhaffarsaidi9457
    @moudhaffarsaidi9457 Год назад +506

    If I'm getting my dividends in USD then 700$ to 1000$ are more than enough. I guess you can retire much earlier if you decide to live elswhere, say mexico, Brazil or SEA

    • @veganonajourney
      @veganonajourney Год назад +16

      Hell yeah. Right on!

    • @nordicexpat
      @nordicexpat Год назад +22

      Malaysia here🇲🇾💰

    • @helciocampos
      @helciocampos 11 месяцев назад +5

      If I move overseas, do I have to pay tax in the USA and other places too?

    • @moudhaffarsaidi9457
      @moudhaffarsaidi9457 11 месяцев назад +9

      @@helciocampos I'm not american so I'm not sure. I heard you pay the US taxes even if you are working and living elsewhere, it is not the same with other countries. Check with the gouvernement websites you'll find something. In anycase, the taxes at some other countries are a fraction of what you pay un the US and the sum of taxes and living expenses is less than the cost if living in the US. That's my case anyway

    • @shaneomack5018
      @shaneomack5018 11 месяцев назад +2

      Spain 🙋‍♂️

  • @rafaelg.9962
    @rafaelg.9962 Год назад +146

    My strategy is much more casual: I contribute as much as I can, as wisely as I can of course reinvesting for now. The day I feel like retiring or am forced to I will suit myself to the funds I have available.
    But no doubt dividend growth and compounding are key elements to optimal results.
    Thanks for the videos!!

    • @RobT192
      @RobT192 11 месяцев назад +7

      Sounds like a plan bro, let your dividends reinvest until you retire and you'll be golden. I plan to turn off DRIP two years before I retire so I have a nice cash nest built up.

    • @JoshOwens04
      @JoshOwens04 7 месяцев назад +1

      If you don’t mind me asking. What type of account do you have these investments in and what are some good dividend stocks that’s have the qualities mentioned?

  • @Spawn223311
    @Spawn223311 9 месяцев назад +26

    These videos tend to be god level optimistic. They never take into account losses

    • @S-we2gp
      @S-we2gp 10 дней назад

      Yeah I’m fairly certain this is not close to the returns one is likely to get over a protracted period of time.

  • @yasaipicles6295
    @yasaipicles6295 Год назад +291

    Jesus 7.5k monthly cost of living... my guy needs to cut out those luxury car payments

    • @timothyyoung980
      @timothyyoung980 11 месяцев назад +3

      😂

    • @aaronburdon221
      @aaronburdon221 11 месяцев назад +13

      I know right. 2k a month max. I could stretch 1.2k if I had my own house.

    • @WhiteWolfeHU
      @WhiteWolfeHU 11 месяцев назад +40

      Given that’s 30 years In the future…. $4k a month now is nothing.
      $1500 living/bills
      $800 food
      $500 vehicle/insurance/gas
      Phone/wifi
      Taxes

    • @aaronburdon221
      @aaronburdon221 11 месяцев назад +28

      @@WhiteWolfeHU 800 for food? What the hell are you eating? Are you paying for a family of 5?

    • @christophershoemaker7189
      @christophershoemaker7189 6 месяцев назад +7

      It’s not a car.. it’s a 500k mortgage with probably 10k in property tax a year.

  • @JL-ho1tc
    @JL-ho1tc 5 месяцев назад +48

    You need about $800k to live off dividends comfortably.
    $800k invested into good monthly dividend paying ETF's will pay you upwards of $70k a year. give or take a few thousand. Before taxes.
    So if you don't try to live like a multi millionaire, and just wanna leave comfy, then $800k = $70k in yearly dividends is sufficient.

    • @Kevinw4040
      @Kevinw4040 4 месяца назад +4

      Which divi etf is gonna pay you 70k on 800,000$ invested?? I’m in schd and it’s gonna take more than that

    • @JL-ho1tc
      @JL-ho1tc 4 месяца назад

      @@Kevinw4040 schd is garbage.. It doesn't pay a monthly dividend.. JEPQ, JEPI, QQQY, JEPY.. You split up $800k among those four and you can live comfortably, no problem.

    • @jworthy9833
      @jworthy9833 4 месяца назад +3

      I’m interested in your theory- $70,000 is about 8.75 percent of $800,000.

    • @JL-ho1tc
      @JL-ho1tc 4 месяца назад

      @@jworthy9833 i have $569k divided up between JEPI, JEPQ, and QQQY and my expected remaning dividend income for 2024 is $88k. I'm single with no kids.. I can live easily off that.. I'm reinvesting the dividends so the monthly income will continue to grow with every dividend payment.

    • @-scott-3739
      @-scott-3739 2 месяца назад

      The 70 k is taxed?

  • @aze2099
    @aze2099 4 месяца назад +8

    However;
    1. Most people has a skewed view on how much they need each month. They think their current wage is the lowest they need to survive, and then some. But it's really way,way less. And if you start downsize your expenses you both can save up faster, and have a lower goal to reach.
    2. You don't start with "high" dividend shares. The dividend isn't really that high. You start with higher growth stocks, whether they give out a dividend or not. That way your money will grow faster, and when it gets close to start cashing out you can switch to dividend stocks.

    • @user-yb9hi3us4p
      @user-yb9hi3us4p Месяц назад

      Have a combination.
      Dividends are really free money, so even a few div stocks can give a little bit that you can invest in higher risk investments. That way if it goes bad you've not really lost anything.

  • @christophermyers6372
    @christophermyers6372 Год назад +34

    An extra $400 or $500 a month (after taxes) to supplement income would be more than enough for me to happy right now.

  • @Zerotragedy
    @Zerotragedy 11 месяцев назад +17

    I like the spreadsheet. Something to consider is you have a set amount of 2% inflation which is vastly understated. Generally people have assumed 3% is the typical inflation number however that would also be inaccurate. In reality, we have hit between 8-15% for the last 5 years and show no signs of slowing down.
    You may also want to mention in your video to utilize a Roth Ira so you do not have to pay taxes in earned dividends which would better pump your portfolio value over time.

    • @jonathanbauer2988
      @jonathanbauer2988 10 месяцев назад

      so if the tax rate is the same, for example 10% (I wish lol but just for examples sake) investing 100$ now in a 401k (tax exempt) and then paying 10% taxes when you retire, or investing 90$ now in a ROTH and paying no taxes when you retire actually returns the EXACT same amount of money, you have to run NPV functions to understand it fully but the reason to invest in both is not because ROTH is better its because you can assume that tax rates will go up with the US leaning more and more left every year for the last 30 years. If that switches then you will have wished that you had put more money into a 401k because withdrawing from roth if the pretend tax rate went down to 5% would mean you paid higher taxes on your income than you should have lol

    • @jonathanbauer2988
      @jonathanbauer2988 10 месяцев назад +1

      all im saying is that mathematically its exactly the same amount of money if your tax rate is the same. The reason is if you contribute 90$ to roth it means you would have been willing to contribute ~100$ (like 99 to be exact) to a 401k which after all the compounding amounts to the same exact income level when accounting for the same 10% tax rate. The benefit of both accounts is trying to switch which ones you are withdrawing from based on the tax rate, and also alot of employers match traditional 401k which means that one is usually more worth it.

    • @jonathanbauer2988
      @jonathanbauer2988 10 месяцев назад

      I am trying to find the name of the video that explained this fully but it was really good because I used to be obsessed with ROTH and just didnt understand the math behind it. I still love them and have that dream of having a massive family roth account which never gets taxed lol, but if its just for retirement purposes its of the same value (if tax rate stays the same)

    • @Zerotragedy
      @Zerotragedy 8 месяцев назад

      @@jonathanbauer2988 A Roth IRA you will not have to pay taxes after you retire as long as you wait until 59 1/2. This goes for contributions and earnings. So the Roth Ira would come out ahead and they are not the same. You can research this for yourself

    • @jonathanbauer2988
      @jonathanbauer2988 8 месяцев назад

      no you just arent doing the math right.@@Zerotragedy

  • @joeaitken8262
    @joeaitken8262 Год назад +22

    Food for thought, your cost of living will most likely increase over time not strictly by just inflation. Assuming you want to have a family i.e kids, house, etc that will dramatically increase the cost of living as you get older. Now I understand that not as easy to track then an average inflation value over time but something to be aware of.

    • @KO-gj9ug
      @KO-gj9ug Год назад

      COL really should be separated into segments and added together. Housing, for instance is static relative to inflation if you have a fixed rate loan and doesn't rise with housing inflation

    • @LegDayLas
      @LegDayLas 11 месяцев назад +5

      Having a house dramatically decreases your cost of living in your later years. Once it is paid off you cut a massive expense from your life. It's far harder to retire with an active mortgage or when renting.

    • @kfox9650
      @kfox9650 11 месяцев назад +1

      Just to add fuel for your fire here. Health insurance outpaces inflation. At least my area, its been 2-4 times inflation for 20+ years.

    • @Dailyproductions-g3n
      @Dailyproductions-g3n 9 месяцев назад

      Gold and silver are the hedge for inflation.

    • @bassheadunion
      @bassheadunion 4 месяца назад

      valid point but this is for retirement, so although those costs may increase, do you plan on having those kids living with you when you retire, do you plan on not having a house paid for or nearly paid for by then? probably not the case so although inflation increases cost you should be reducing many costs by retirement, no car payment, no house payment, no high credit card balances, and so on.

  • @imbrega7831
    @imbrega7831 Год назад +45

    Good video but isn't 9% way too much for the dividend growth projection? Since the calculation is considering really long periods of time, 20+ years, arenìt dividend growth stocks unable to hold that high grow rate for that long? Since they are bound to slow down, and I think the core of this calculation is all relative to the compounding effect of the dividend growth, 9% feels way too high. But yeah prove me wrong or try to explain it, maybe I'm missing something!

    • @t0bakken1337
      @t0bakken1337 Год назад +5

      So basically 9% of 100 = 9
      as the compound takes place those 100 will grow to let's say 300 and by then 5% of 300 is more than 9% of 100..
      The only thing is does is making the exponential curve a little less steep, but by then you would already have surpassed the Cost of Living ( hopefully )

    • @imbrega7831
      @imbrega7831 Год назад

      @@t0bakken1337 yes but the 9% is applied to each dividend payout so that's what makes it exponential, it's not applied to the start value, it's applied to the previous value. so my point is that 9% is way too high because the growth of the dividend is not gonna stay at 9% for 20 years

    • @FxAndrej
      @FxAndrej Год назад +7

      You're not wrong. Everyone and their dog talks about "high yield trap" (ie buying stocks for high dividends like 8%+ only to see it cut down later), but almost NOONE talks about "high growth dividend trap".
      I think you're spot on - extrapolating current high div growth into the far future is also quite risky. Most companies, as they reach a certain size, stop growing so fast. Graham talks about this in his book The Intelligent Investor

    • @sailingbrewer
      @sailingbrewer 5 месяцев назад +2

      I like how you were able to provide an example of a company that pays low dividends but you don't have an example of one that grows at a ridiculous amount and they increased the amount of their dividends. Think about it. How is that company ever going to make any money if one person giving him 12 grand a year is going to cost them 50-100 grand annually. It's not going to happen.
      Real estate is something that can provide you that kind of monthly income after paying off the mortgage which would be close to that $300k you would have put in. But with real estate you get tax write offs left and right

  • @johncalloway5093
    @johncalloway5093 5 месяцев назад +14

    If you're putting 100 percent of your dividends back into the investment, you'll never live off of them.

  • @DayZeroGaming
    @DayZeroGaming Месяц назад +2

    60,000 is the minimum amount required to get working wage dividends. High % ETF that goes slightly up in price as well every year would be multiplicative enough to grow expenentially each year. Let that 60k sit in these funds for 5 years and you will have a lot of money, close to 320,000, accounting for inflation and for market changes over year

  • @t0bakken1337
    @t0bakken1337 Год назад +13

    Things this lacks:
    - When you start to live off the dividend, you will no longer add DRIP or monthly contributions, this will result in cost of living catching up at some point, depending on the market..

    • @Dividendology
      @Dividendology  Год назад +3

      Cost of living will most likely not catch up actually, IF you are invested into dividend growth stocks. Dividend growth rates have historically been far above inflation rates.

    • @workertotraderjourney9007
      @workertotraderjourney9007 Год назад

      only if the dividend growth stock continues to growth and you get your money back in 30 years' time.@@Dividendology

    • @FxAndrej
      @FxAndrej Год назад +4

      @@Dividendology The risk with dividend growth stocks is that they might slow down at any time. e.g. when you start with a 2% yield, it grows nicely for 5 years, and then grinds to a halt, because the company can't grow just as quickly anymore. And of course, no one can predict far into the future with any accuracy. This is seriously worth exploring as a risk. Not every company is a superstar like Visa.
      Hence I advocate having 4%-7% safe yielders as part of the portfolio.

    • @Dividendsmattertoo
      @Dividendsmattertoo Год назад

      @@FxAndrejthis is true and why I mostly invest in ETFs

    • @suttsd
      @suttsd Год назад

      ​@FxAndrej not all companies. Looks at LOWs that have been growing dividends for over 40 years with a dividend growth rate still in the double digits

  • @nateums
    @nateums 3 месяца назад +1

    It’s 283k over 23 years of investing without any lifestyle and demographics variables - you’re welcome

  • @EffectsTV
    @EffectsTV 4 месяца назад +2

    The thing everyone needs to actually do things like this is a great start in life: Get a job while living with mom and dad, then invest 80% and enjoy the 20% doing with it as you please with the freedom of not worrying about bills. If you had a single mom like I did that only cared about lining her own pockets then avoid the job altogether.
    When my kids are old enough to work, I'll suggest it to them that I'll keep 50% of their paycheque and when they move out they can have all the money they gave to me.

  • @xeflatio93
    @xeflatio93 11 месяцев назад +26

    This is what you do:
    -Deposit 20K in your broker account
    - search for German car manufacturing companies stocks they offer 8% 9% dividen
    - use leverage to buy 150K in stocks and receive 12K in dividends yearly
    -move to any country that allows you to live with 1000 dollars a month

    • @EvilMmM
      @EvilMmM 7 месяцев назад

      WHAT! :O

    • @PaulS23
      @PaulS23 7 месяцев назад +1

      Don't you have to pay interest for leverage?

    • @glupshitto5019
      @glupshitto5019 7 месяцев назад +10

      lmao bro the interest on margin is at a minimum 13% you will lose all your money with this strategy lmao leverage isnt free money

  • @Red13.0
    @Red13.0 5 месяцев назад +1

    You need 2million invested at 4% dividend payouts a year, that’s 80k a year, if you manage to spend less then that a year then your income and portfolio will consistently grow each year and you’ll be able to have more dividends each year if you reinvest whatever dividends you reinvest.

  • @MrStillmans
    @MrStillmans Год назад +8

    Because of factors mentioned here, I recommended investing as much of your paycheck as possible instead of squirreling away smaller amounts.

    • @bighou2359
      @bighou2359 Год назад +2

      Enjoy pb n j for 40 years

    • @ndub4014
      @ndub4014 11 месяцев назад

      @@bighou2359
      and water. lol

    • @jamesleonard4713
      @jamesleonard4713 6 месяцев назад

      @@bighou2359 probably, lol. I would say, it's either that or sacrificing really hard for 5 years or so and then a steady approach afterwards. I know people who got involved with FIRE (financial independence retire early) and just really saved a lot over about 5 years, to get into the position to where they wanted to be financially. It definitely helps if you have a partner like a spouse or you can even get a bunch of buddies together to get it done. Couple I know, just decided they were going to only live off one salary. They banked the entire second salary. Both had 401ks at work, with matches. They went down to one car, cutting out payments and insurance. They then had side hustles, like they both were Uber drivers, where they took turns driving in the evenings and they banked 100% of what they made on that. At the same time, they bought and lived in houses they were fixing up to sell, 100% of the profits were banked. Now they had pretty good jobs, so they were saving a lot, between everything, they were banking well over 120K year, not counting the dividends on their investments or the profit selling a couple of houses. After about 5 years they scaled back, no more 2nd jobs or rough houses, because they had 7 figures in the bank.
      I'm little older, but I decided to work on it too. I was able to downsize my house and payoff of new place and then bank what I was already paying on a mortgage. Went down to 1 car, by moving closer to my work. Was able to more than double my saving rate, plus cut out a huge chunk of my expenses. Just retired a couple of months ago at 55. Wish they taught FIRE in high school, I'd have been financially independent a couple of decades ago.

  • @jordankendall86
    @jordankendall86 11 месяцев назад +23

    It appears to me that you should simply try to earn a market return of say 10% or possibly 12% in your dividend growth example, then switch to a higher starting yield in retirement. Either way, you want a good return no matter the strategy. Therefore whatever strategy employed, you still have to follow the principles of starting early and being consistent with investing regularly. I believe there may be a slight flaw in your analysis because when I tried to replicate your model, if the price growth is higher than the dividend growth, there are some interesting results. Essentially when price growth exceeds dividend growth, it is like buying an increasingly more expensive asset that still has the same cash flows. In your example of using a starting yield of 7.5%, if you drop the price growth to zero, then you would have sufficient dividends to cover your monthly expenses before the 30 years ends. Just saying. Might want to reevaluate your analysis.

    • @lez075
      @lez075 8 месяцев назад +6

      The problem with that strategy is the BIG tax implications that the "switch" has. If there were no taxes, then yes, build a growth portfolio in your 20s and 30s, begin switching in your 40s and switch all the way to dividend stocks in your 50s and 60s and probably to bonds in your 70s and 80s. BUT this is in a dream world, in the real world where taxes have to be paid, the best way is the start with a dividend growth portfolio, looking for 1.5-3% dividend yield and at the same time an average anual price increase of 8-10%. The idea is to never sell the stocks, therefore never paying capital gains and only paying taxes on dividends.

  • @gregsmith7828
    @gregsmith7828 4 месяца назад +1

    unless you lived in a major city. the 4k a month living expense shows you have debt .GET RID OF THE DEBT 1st

  • @justinkarnes3276
    @justinkarnes3276 5 месяцев назад +2

    Just out of curiosity, is a 9% annual dividend growth rate over 30 years, even a realistic thing to expect? Anytime I see that exponential growth line in a portfolio, I'm always very skeptical of it and that 9% annual growth rate for 30 years seems like something that is not sustainable or feasible

  • @blanktintin
    @blanktintin 6 месяцев назад +1

    Quit my job to, selling stuff from thrift shops, building guitars and basses to sell, going to make 60k to invest this year so I can get my time back with my partner. No debt, no house but sometime next year I’ll get her dream house built. Work is your best friend so get to it!

  • @h2t26
    @h2t26 4 месяца назад +1

    Taxes cant be ignored. It will effect you every step of the way. Also as another comment mentioned need to take into account how not reinveting later effects things. Finally lack of growth will hurt you. A balanced profolio is usually most pl best bet.

  • @aceangels7153
    @aceangels7153 Год назад +4

    Assuming no wife, no kids, no elderly parents, no extra medical expenses. If you ever get a divorce, half of your nested eggs are gone and child supports, real life is more complicated. You need to be very lucky and healthy to be able to retire much early

    • @aleccozi6458
      @aleccozi6458 Год назад

      No, just need to not make stupid decisions

    • @josephbranham5770
      @josephbranham5770 11 месяцев назад +2

      @@aleccozi6458 Meaning don't get married, don't have any kids, don't associate with your elderly parents, don't get sick and accumulate medical expenses...Like those stupid decisions???

    • @douglaskeen873
      @douglaskeen873 11 месяцев назад

      @@josephbranham5770 Getting married and having kids are stupid decisions, especially when the Welfare State encourages broken families to keep the family courts and support bureaucrats in business. Young men are better off staying single and focusing on wealth building rather than getting involved with women who know the power of the State to rob men for the benefit of both the State, and the woman, is on their side.

    • @jeremyvettech5562
      @jeremyvettech5562 4 месяца назад

      ​@@aleccozi6458Shh the adults are talking

    • @Spp235.
      @Spp235. 4 месяца назад

      @@jeremyvettech5562😂😂😂😂😂😂

  • @wemustdissent
    @wemustdissent 10 месяцев назад +3

    For it to grow you have to let it compound and to let it compound you have to reinvest the dividends at which point you are just generating taxable events for no reason. Much better in that case to use growth funds that do not generate dividends to avoid tax drag and then just live off of withdrawls.

  • @cloudedjourney
    @cloudedjourney 10 месяцев назад +7

    Do you have examples of stocks or ETFs that have a 7% growth rate and 9% dividend growth rate? That seems quite high over time.

  • @JoaoSantos-vo8gx
    @JoaoSantos-vo8gx 11 месяцев назад +3

    I don´t think this is a good comparation between high yield vs. high growth dvd. You used 2% price growth rate, 0 dvd growth rate and 7.5 dvd. yield, however, using ARCC as an example: 6.84% growth rate (1year) , 4.65% dvd growth (5years), and 10.09% dvd yield (fwd), there way more examples than arcc, like obcd, main, etc.

    • @thebes56
      @thebes56 11 месяцев назад

      Exactly. That's the kind I buy.

  • @lucauau
    @lucauau Год назад +20

    I think it would be significant to factor in the mix between dividend income and assets sales.. 😊

    • @markeh1971
      @markeh1971 11 месяцев назад

      Hi, seen several worked examples in the Uk where this ends up happening to keep an income going.
      How long do you intend living for and what are you going to be spending your money on when you are bed bound or don’t know what money is?
      Best to spend it in the early years of retirement while you can still enjoy it.
      And before you ask I don’t think I’ll make retirement but I do want to have money in place in case I do.
      Take care M

  • @halfbee7886
    @halfbee7886 9 месяцев назад +4

    Have you considered the possibility of cashing out some of those dividends for paying off your monthly expenses, instead of re-investing them? If so, how much are you allowed to cash out per month, in proportion to the size of your monthly dividends?

  • @papasmurf519
    @papasmurf519 Год назад +20

    Hey love the channel! I recreated your spreadsheet when you showed it in a previous video and made the % reinvested variable. I like to use 80% reinvested (assuming you pay 20% taxes on the dividend income and reinvest the rest.) It is interesting to compare to 0% and 100%. Anyway, great vid as usual!

    • @Dividendology
      @Dividendology  Год назад +2

      Thanks! And very cool!!

    • @exorgonic8780
      @exorgonic8780 11 месяцев назад

      Could you please post a link to your revised spreadsheet please?

    • @andrewmorales5485
      @andrewmorales5485 10 месяцев назад

      @@Dividendology I have a question is it possible to earn weekly dividend stocks company share like $5k a week

  • @dustinwagner5902
    @dustinwagner5902 11 месяцев назад +8

    So something people really don’t think about or understand is that a blend strategy is almost always the best strategy.
    The basis is your core is 50% and your core is usually 2-5 holdings that yield around 3-4% with the growth you note. But to top it off, you blend in 25% for high yields, and 25% for covered options.
    For 7 years my div growth has been 6% annually, my share appreciation has been 5% annually, and my income yield (dividends and premiums) is at 24%.
    This is a very moderate strategy that has layers of safety and aggressiveness to get you into retirement much earlier and keep you there!

  • @workertotraderjourney9007
    @workertotraderjourney9007 Год назад +5

    Thanks for sharing, it is so sad in real life that the tax is one thing stopping us from achieving it, and another carvet is that I doubt very much we can find something with a 9% dividend growth rate per year and the share price only growth of 7%, for those great dividend stocks their price growth rate is likely to be 15% plus. and to be diversified, we need to have at least 10 stocks and pays dividend like that. Do you see Pepsi Cococola still having a chance of growing its dividend like before, for the next 30 years? Building wealth through working on a salary job will really take a generation to complete. So that the dividend portfolio is really for the grandchildren instead of us, but again, before we pass anything on, it's going to be taxed a big chunk of it.

    • @lightnesskingpwnsyou
      @lightnesskingpwnsyou Год назад +1

      I think coca cola and other lookalike companies will be able to grow their dividend. As inflation goes up so does their prices, revenue, profit in absolute numbers.

    • @majorgear1021
      @majorgear1021 10 месяцев назад +1

      Correct. Even if you find stock with a good yield, the dividend can be decreased or
      just stopped at any time. There are no guarantees.

    • @scottcartwright9008
      @scottcartwright9008 5 месяцев назад

      ​@lightnesskingpwnsyou Bill gates owns 37 million shares of micro soft and he gets 75 cents dividend per share

  • @KO-gj9ug
    @KO-gj9ug Год назад +20

    Owning a home, which should be done before or around retirement, would also cut that projected COL in half by the terminal date

    • @ZacklFair
      @ZacklFair 5 месяцев назад +1

      Why would you want a house? Costs too much. You can travel for less.

    • @KO-gj9ug
      @KO-gj9ug 5 месяцев назад +6

      @@ZacklFair because your cost of living is next to nothing after that. Even if you dont live in it, real estate is one of the best assets to have. Unlikely you'll be traveling on the move forever

    • @alexs4392
      @alexs4392 Месяц назад

      @@ZacklFairyou can rent it out..

    • @totuudentorvi7781
      @totuudentorvi7781 Месяц назад

      And what if you never had a mortgage to begin with - and all the money that would have gone towards interest on a mortgage, you invested instead?

    • @alexs4392
      @alexs4392 Месяц назад

      @@totuudentorvi7781 where were you expecting to be living that whole time then

  • @vindex7309
    @vindex7309 4 месяца назад

    Depends on the roi for the dividend. If the minimum cost of living is $40,000 in today’s dollars and shares pay out like $0.26 per share, you’d need 38,461-ish shares. Assuming you invest in an established stock that would most likely be able to provide consistent dividends, that would prolly be like $100 per share… you’re looking at $3,846,000 for a $40,000 year on year return… then again, this is conjecture and not accounting for the cost of living rising from inflation year on year. You’d probably want even more to be able to reinvest the amount into more dividends to keep up. Also, dividends are not guaranteed. Even if you get preferred stock, the company does not have to pay dividends.

  • @jasonhouchins1230
    @jasonhouchins1230 9 месяцев назад +2

    23 years at $1000 a month.

  • @jeanmich6190
    @jeanmich6190 Месяц назад

    Something I don't understand, since you are looking for a very long time period investment say +20years or more wouldn't it be more interesting to invest in capital than dividend and when you want to retire sell all your capital and buy dividends?

  • @user-yb9hi3us4p
    @user-yb9hi3us4p Месяц назад

    Cost of living is incredibly hard to calculate and forecast.
    The more you earn, the more you spend. As a youngster our economy was rubbish and I spent a year or so on welfare. I actually had more spare income than when I started as although I was earning twice as much my standard of living increased.
    The more you earn the nicer the car, bigger the house, etc.
    I got to earning 100k and my friends on 50k were envious as to how much better their life would be. Except my standard of living wasn't really better than theirs, i just had more expensive stuff.
    Plus technology advances at a ridiculous rate so you'll want to upgrade.
    So allow more than inflation when forecasting what you'll need.

    • @user-yb9hi3us4p
      @user-yb9hi3us4p Месяц назад

      I'd also be very careful what inflation rate you use. It's good times at the moment but I remember in the 80s my parents mortgage rate was between 25-30%. We had a nice house but lived like paupers and needed handouts from the church to survive.
      Things turned and my parents are retired comfortably now but anyone under 30 has absolutely no idea how bad it can get

  • @brotheradamfromups
    @brotheradamfromups 8 месяцев назад +1

    That’s pretty motivating considering my cost of living is about $2000/month meaning the number will be even lower for me. The problem with this is that the working class does not have an additional $1000/month to invest.

    • @ivip40
      @ivip40 8 месяцев назад

      Try to think harder and calculate how much you should invest for $2000 monthly dividend after X years. On my first job I was paid ~$250 for 6 months and still managed to save around 10-15% a month to buy a car after paying rent and the utility bills. Not trying at all is worse than failing!

  • @tomjraumd
    @tomjraumd 7 месяцев назад +1

    I'm presuming you're ignoring taxes along the way? In order to reinvest all the dividends you'd have to outlay additional cash to pay the annual long term capital gains each year.

  • @eitan6740
    @eitan6740 2 месяца назад

    You're assuming a growth rate for this portfolio including dividends, starting at over 10.5%, and by year 23 over 15%, per year. Do you really think that's realistic?

  • @FigureFourNews
    @FigureFourNews 10 месяцев назад +3

    I am confused about one key detail of credit spreads that you touched on: a spread example of selling a PUT @ $50 and buying @ $45. If the strike price ends up being $49, wouldn't the 100 shares be put to you @ $50? How is it that you don't need the capital for 100 shares @ $50? And you mentioned the broker will *automatically* Sell your shares @ $49 once they're put to you...? But you buy the PUT @ $45, so why/how are they automatically sold back @ $49?? That little middle part of the credit spreads where they fall in between your spread and can ultimately be PUT to you has me stuck/confused.
    Thanks!!

  • @RutschnajaTeleschka
    @RutschnajaTeleschka Год назад +6

    I agree with your long run model but what would you do if you have another time frame with different sized bags? For example up to 7 years and an yearly investment bag size of 100k dollar. How would you play that? Let's keep the assumption of 5k dollar expenses on a monthly basis. Also add a 3 different tax options: 10%, 20% and 30%

  • @galaleiokrypto5298
    @galaleiokrypto5298 2 месяца назад

    most of everyone cannot afford investing 1000$ so no matter how you try to play the game... you aint gonna win.... you are almost better off buying something material and playing the buy and resell game.... like buying houses and doing some renos and reselling, provided you are in a good area.

  • @zyxwfish
    @zyxwfish Месяц назад

    What if you could put an initial lump sum of $300,000 into a high dividend stocks of let’s say 8-9% and then roll those dividends into a dividend growth stock?

    • @FutureDreamZz
      @FutureDreamZz Месяц назад

      It’s just risky tbh if you have 300k it’s more then enough to make a solid investment in growth stocks tbh. And then have some “high dividend” like 10 or 20 percent of your portfolio

  • @jimmyToyota1
    @jimmyToyota1 9 месяцев назад +1

    So what’s the amount?

  • @Defender0fDead
    @Defender0fDead Год назад +5

    Without a house payment who needs 4,000$ a month. If I pay off the house I would only need like 1,500$ a month

    • @workertotraderjourney9007
      @workertotraderjourney9007 Год назад

      spot on! I was going to say that too, but only if we manage to pay off any loan without really struggling, so to squeeze a few dollars extra each month, we need to stop spending too. so probably won't even need 1500 a month and retire earlier. Don't get me wrong, I enjoy watching this video as it creates positives for me. However, we are living in a sad world in which we(the working class) are paying debts from previous generations.

    • @republicunited2183
      @republicunited2183 Год назад

      We and future generations will pay debts due to Gov and socialist spending!

    • @KO-gj9ug
      @KO-gj9ug Год назад

      @@workertotraderjourney9007and yet our generation has accrued more debt than any past one

    • @shaneomack5018
      @shaneomack5018 11 месяцев назад

      I think the dude was just doing a generalized number clearly everybody’s dividends payments are going to be need to be different due to where you live and what life style you still want to pursue..

  • @ramoddjob
    @ramoddjob 3 месяца назад +1

    7.5% is quite a yield. Who's your financial advisor, the Madoffs?

  • @swordandscale
    @swordandscale 4 месяца назад

    Why would you settle for 6% dividends when you could just buy an S&P ETF and get double that?

  • @SensesReview
    @SensesReview 3 месяца назад +1

    Don’t forget taxes and inflation

  • @christo7105
    @christo7105 Месяц назад

    $4000 a month 🙂in NYC that is just the rent or your mortgage+ property tax+ maintenance fees etc...

  • @emiliocunich2365
    @emiliocunich2365 Месяц назад

    All scenarios are always too long, how about only have 10 years or 5? Would it be same?

  • @Burbun
    @Burbun 4 месяца назад

    I mean, it's gonna depend entirely on your costs, you can live on practically nothing with certain lifestyles, an American lifestyle, you have to add medical, and it'll be expensive, but if you own a modest home that's paid off you're looking at not much money. The best you can do dividend wise without losing balance (and thus income) over time is 6% but that's on derivatives, not investing directly in companies, that would be around 2.5%
    This guy's monthly cost of living of over 7k is 3x my salary

  • @Jason608
    @Jason608 5 месяцев назад

    So you're saying by year 23 you'll have a fund that both grows in price by 7% AND has a dividend yield of 5.39%. That's a bold assumption and the only way your prediction works. I think that's unrealistic

  • @Khobai
    @Khobai 11 месяцев назад +1

    to be fair you need to include inflation. thats an extra 8% you have to earn on top if we go by 2022 inflation numbers. After inflation and taxes you likely need 1 million dollars or more to reasonably sustain a comfortable lifestyle off dividends. If you have a part time job at least you probably only need half that.

  • @michaelsaxton9416
    @michaelsaxton9416 4 месяца назад

    You've already lost my friend. Inflation in twenty twenty 12 twenty twenty two was roughly four percent. The current rate of inflation is about three and a half percent. Two percent is the goal of the fed current chair. Those goals can easily change within several years.Putting your entire chart way off base.

  • @yotam
    @yotam 4 месяца назад

    That's what they said before each recession

  • @Madxcot
    @Madxcot 5 месяцев назад

    300k could get me 3k in dividends per month. That's 1 percent monthly.
    That's what I make at my full time job monthly currently, not including my business. 300k could replace my full time job.

  • @shaneomack5018
    @shaneomack5018 11 месяцев назад +2

    Our goal is to retire in Spain where the cost of living is 60% less than my home state of flori-Duh as of today.

    • @perrykomick9478
      @perrykomick9478 10 месяцев назад

      Itll never happen...you are too Duh

    • @shaneomack5018
      @shaneomack5018 7 месяцев назад

      @@perrykomick9478please explain to the calls how my math is off than sir?

  • @DrJoshuaPerry
    @DrJoshuaPerry 4 месяца назад

    Why not sell put options on those same stocks instead? You should get more from the premiums than the dividends.

  • @NoName-zm1ks
    @NoName-zm1ks 5 месяцев назад

    Easy, problem is coming up with monthly $1000 to invest and believing the government’s inflation numbers and not our wallets/pocketbooks😒

  • @klausvonshnytke
    @klausvonshnytke 5 месяцев назад

    6:24 I'm going to assume that the growth rate you're talking about is annual. If that's the case, the 7% share price growth rate may be realistic in good market conditions, but 9% dividend growth is complete nonsense. Whole S&P500 30 years median dividend growth rate is 6.94. Good luck achieving that with your portfolio.

  • @briandevine1426
    @briandevine1426 4 месяца назад

    My country doesn't have capital gains tax, how does this affect the calculations?

  • @xzizy
    @xzizy 4 месяца назад

    I have a question about your model tho. It assumes that you continue adding money and compound contribution dividend yields even after the point dividend return surpasses the living cost, but if you're going to living off the contribution will be cut off right? Are we then assuming that the 1000 contribution and the dividend contribution taken from the return yield is going to only after 2xthe monthly cost of living?

  • @zoe..d
    @zoe..d 5 месяцев назад +1

    Do you peeps in the states not pay a cent of capital gains tax on your dividends?
    Surely you have to pay tax at some point on all this growth along the way.

    • @dnobxela68
      @dnobxela68 2 месяца назад

      You pay income tax on dividends. Not cap gains.

  • @firefighter9901
    @firefighter9901 3 месяца назад

    The problem with this is the cost of living has increased more in to past 20 years then what you would make off these

  • @stijnkoornstra
    @stijnkoornstra 4 месяца назад

    Thanks for the information, the only problem with this method is that you can’t be sure a div will keep its growth rate over a span of 30-50 years

  • @ZeginMakesMusic
    @ZeginMakesMusic 4 месяца назад

    What's better than spending your dividends and living off of them, Is to reinvest your dividends and continue to work. Compound interest will make you a billionaire

  • @MathieuDeVinois
    @MathieuDeVinois 4 месяца назад

    Hm, in that scenario, reinvesting 100% of dividends, why not just invest into a growth etf. And switch to a dividend etf when you actually want to „harvest“ some of the money.

  • @Brandon_Neil
    @Brandon_Neil 9 месяцев назад

    I followed everything except for the difference between the 2 types of shares that have either the higher starting dividend layout per share versus the higher price growth rate and dividend growth rate. How can you tell which stocks are which?

  • @INWMI
    @INWMI 5 месяцев назад

    Here the lowest ammout you need is about 250k, this after taxes may provide you the min wage of our country

  • @watchr0b
    @watchr0b 4 месяца назад

    For my life in a nice house with three kids, 200k to spend a year is just treading water. 48k would be poverty.

  • @supertodger
    @supertodger 3 месяца назад

    You don't need 4 grand a month unless you still have a mortgage payment.

  • @gmnod
    @gmnod 4 месяца назад

    Also a big crash is eventually coming and at that time we can buy a lot more stocks, so the price growth is not always as you considered. At this moment, after so much upside since 2009 lows, I think to consider a price growth for the next 10 years of 0% is reasonable

  • @waterfoker8558
    @waterfoker8558 7 месяцев назад +1

    I'm using 4-5% inflation just to be safe

  • @clarkminer8650
    @clarkminer8650 Год назад +3

    Great video! Have you considered selling options to boost your income? What are your thoughts on options? Thanks!

    • @billdivine9501
      @billdivine9501 Год назад +2

      Selling options is a great way to generate money.

  • @lt5339
    @lt5339 Год назад +1

    Your math is correct, but your perspective about the market is so naive. Let's say I want to retire at age 40 and my life expectancy is 85. That means for 45 years, the market should always go up. There should not be ten-year periods like 1930s, 1970s, and 2000s, where market overall did not grow and my dividend shrinks dramatically. But in reality, it is almost certain that this type of thing will happen in my 45-year retirement life, because it happened every 30 years previously. So my real advice to everyone is to have a much larger portfolio if you plan to retire relatively early. I would say 3 million dollars will keep you safe for 30-40 years if you plan to withdraw around $50-100k each year.

    • @gmnod
      @gmnod 7 месяцев назад

      Bro if market crashes its good for dividend stocks, you can buy more shares at lower prices

  • @tomee639
    @tomee639 5 месяцев назад +1

    I don’t understand how your sheet can account for the date at which you can begin to “live off of dividends” but still reinvest? At the point where you begin to live off of dividends, aren’t you no longer reinvesting because you’re living off the money?

  • @kaloyan2778
    @kaloyan2778 4 месяца назад

    Yeah well this last happy scenario means that after 23 years of 9% divident growth rate, you get a 25% divident on a stock which has grown 7% in value for the same 23 years and is almost 5x as expensive. Has there ever been such a case in reality?

  • @fretless05
    @fretless05 11 месяцев назад

    Correct me if I'm wrong here, but it appears to me that you have a couple flaws in the underlying assumptions of your model. First, you assume a cost of living of $4000, but then add in an investment of $1000/month, making your net cost of living actually $5000/month. Second, when you graph the income from reinvested dividends, it only shows where dividends exceed costs, but if you take that as the point at which you can live off dividends, you have to redo the curve from that point on without either further investment or dividend reinvestment. Those could make a huge difference in the answer to the question of when you can actually retire.

    • @Dividendology
      @Dividendology  11 месяцев назад

      Nope! It’s right. If the dividend growth rate exceeds the rate of inflation, you’ll be able to live off dividends even without reinvesting dividends.

  • @alanhaynes9672
    @alanhaynes9672 3 месяца назад

    Yes, but as soon as you start living off your investments in year 23, you immediately fall behind as you have stopped reinvesting. Every year onwards you have less and less money.

    • @Dividendology
      @Dividendology  3 месяца назад

      Not necessarily. If your dividend growth rate is above the rate of inflation, you can still live off dividends forever.

  • @Biggelz06
    @Biggelz06 Месяц назад +1

    JUMPSCARE at 3:13

  • @n4lgaming772
    @n4lgaming772 4 месяца назад

    I honestly don’t get the urge to retire. I love my job, one day i will be forced out due to my age, and that will make me sad.

  • @TheFutureisTheFuture
    @TheFutureisTheFuture 5 месяцев назад

    I'm not sure this shows what actually happens when you start "living" off of the money... that line isn't going to continue to go up... right?

    • @Dividendology
      @Dividendology  5 месяцев назад +1

      If the dividend growth rate is above the rate of inflation then yes, it will continue to go up. Just not as fast as if you reinvested dividends.

    • @TheFutureisTheFuture
      @TheFutureisTheFuture 5 месяцев назад

      @@Dividendology right so that would be helpful to have a realistic "this is what happens at year 1." "this is what happens if you wait 5 more years" etc... we all do that with our 401ks 🙂

  • @mahirc3543
    @mahirc3543 10 месяцев назад +1

    With a couple of property investments and renting it out, you can easily reach way more with far less.

  • @TD-ug4mg
    @TD-ug4mg 4 месяца назад

    Most people absolutely do not have the ability to invest $1000 a month in their twenties. Maybe half will have the ability to do that in their thirties.

  • @fakeaddress5647
    @fakeaddress5647 4 месяца назад

    I see why nobody is having kids. Especially with the cost of sending them to college. That demographic and economic collapse is gonna make for companies that stop paying dividends….

  • @Reggie2000
    @Reggie2000 4 месяца назад

    I got bored. What was the final answer? 🤔😒

  • @nyacoustics8373
    @nyacoustics8373 10 месяцев назад +1

    if you reinvest the dividends then how would you live all those years for your monthly expenses without tapping into your initial investment.

  • @jwilder2251
    @jwilder2251 10 месяцев назад +1

    So your system is to beat the market over 20+ years, then dividends work great

  • @stevenharris6626
    @stevenharris6626 Год назад

    I'm approaching 65, and I am saving as much as I can. My goal is to live off of my dividends as much as possible. It is only possible if I save AS MUCH AS I CAN!! It will be tough, but it will only be possible if I give it my best shot. It's tough in todays economy, and placing more in bonds for now will be safe, but still need to get stable stocks with good dividends. For example, KO, O, etc. If I add SS income, I should be able to reach my goal!!

    • @markeh1971
      @markeh1971 11 месяцев назад

      Hi, might want to continue working, here in Uk it used to be 65, now it’s 67 and they want to raise it higher.
      Interestingly they’re is no forced retirement age, my hero is 72 and still goes to work!
      How he manages to keep going is the question.
      Take care and keep well M

  • @CharlesKrueger
    @CharlesKrueger 8 дней назад

    I am totally missing where to get this sheet from.

  • @flibbertigibbet6200
    @flibbertigibbet6200 2 месяца назад +1

    4k a yr expenses and 1k a month to invest, what planet are you on? Most things I read are a very high percentage of Americans live paycheck to paycheck. When you're young, you have very little left to invest. The time you start having 1k a month to invest is when you're normally in your late 40s and 50s

    • @FutureDreamZz
      @FutureDreamZz Месяц назад

      I’m 26 and have 2k invest it’s not that hard people make more excuses then fixing the situation

  • @cosmicfertilizer
    @cosmicfertilizer Месяц назад

    This is the video I needed. Thanks!