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

[@Dividendology]

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]

40 years I'm definitely dieing before then

[@andrewmorales5485]

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]

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

[@jedimasterham2]

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

[@andrewmorales5485]

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

[@Joejoe-j5k]

I live off dividends and it can definitely improve your wealth if you reinvest them to buy more shares, creating a snowball effect that allows your investments to compound over time. It's one of the most passive and effective ways to build an income stream. Steady growth can be truly inspiring!

[@Msmelissa-u1w]

so big on stocks and it has worked well for me, but I also like to have a well balanced, low-cost set of ETFs that keeps the money in my pocket. How effective is your approach returns on the long run?

[@Lowery999]

Have you considered the possibility of cashing out some of those dividends for paying off your monthly expenses, instead of re-investing them?

[@Joejoe-j5k]

tbh I keep compounding, adhering to well established patterns from a professional, even as a rookie, can bring tremendous value! I’ve trimmed, added also and now my average growth has increased 88% in the past year while participating behind a top performer. effectively remits 68k and increasing.

[@Msmelissa-u1w]

Cheers I'm looking to start a position in SCHD, JEPQ with dividends of existing stocks. It's going into an IRA and I'm really looking for growth over time. I will be reinvesting dividends, so my position size will grow over time. Okay if I ask for referral from you, I mean your top performer.

[@Joejoe-j5k]

Much better you get a direct intro yourself, I've been participating with Margaret Ann Myatt a profound outlook on her growth stats. very Impressive.

[@mathewrandolph2301]

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]

That will be for your kids when you are dead

[@pauobunyon9791]

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]

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]

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

[@Massivemonster1234]

Losing, not loosing, Junior

[@Mark99PERU]

Drink every time he says dividends

[@DeinoTV]

Hahahha

[@FlorinBarbu-c1v]

I can’t keep up !!!

[@xavierjones6852]

I did and now I have alcohol poisoning

[@davidvitali7247]

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

[@TheMrAssassinchillz]

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

[@rafaelg.9962]

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]

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]

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?

[@JoseFlores-xh5cj]

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_]

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]

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

[@vDungeon]

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

[@fredoman2683]

Do you mind sharing how you invested?

[@JoseFlores-xh5cj]

@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]

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]

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.

[@thebes118]

Nailed it.

[@sat_lok_]

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

[@DTM45]

Good words.

[@adamsc9049]

Nailed it!

[@jas-ve7bg]

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]

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

[@LegDayLas]

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

[@everlonggaming1966]

@@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]

​@@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]

​@@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.

[@moudhaffarsaidi9457]

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]

Hell yeah. Right on!

[@nordicexpat]

Malaysia here🇲🇾💰

[@helciocampos]

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

[@moudhaffarsaidi9457]

@@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]

Spain 🙋‍♂️

[@Spawn223311]

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

[@S-we2gp]

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

[@nakke3]

It's strange that the portfolio divident yield would grow in a different pace than the price of the stock. The price has two possible upside components, earnings growth and share buybacks. If the divident grows faster, then the price growth might not be much more than inflation since the company can't allocate the earnings to growth. I don't know if my reasoning has some thinking error, but it's good to educate the listener on the reasoning behind random percentages put to the Excel. The choise of percentages is the most important task and should be backed with couple of pages of literature sources to be beliveable.

[@tanko.reactions176]

the 10 year cagr being 10%, for example, already has baked in the fact that some years there will be great losses, like -20%. the 4% rule also accounts for this. so your worry is somewhat unjustified.

[@michaelsorensen7567]

Or higher than average inflation Or, y'know, assuming $1000/month contribution

[@blaytn]

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]

Make more money.

[@bassheadunion]

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]

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

[@blaytn]

@@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]

@@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

[@DayZeroChannel]

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

[@JL-ho1tc]

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]

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]

@@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]

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

[@JL-ho1tc]

@@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]

The 70 k is taxed?

[@imbrega7831]

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]

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]

@@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]

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]

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

[@joeaitken8262]

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]

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]

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]

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]

Gold and silver are the hedge for inflation.

[@bassheadunion]

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.

[@christophermyers6372]

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

[@treepop9907]

Dividend payments are usually paid out quarterly not monthly. Most people don't have the impulse control to make that money last till next quarters pay out.

[@justinkarnes3276]

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

[@jordankendall86]

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]

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.

[@aze2099]

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]

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.

[@MrEdrftgyuji]

The other factor is you will pay off the mortgage at some point. This will remove what is likely your largest monthly expense.

[@aze2099]

@user-yb9hi3us4p Dividend paying stocks are usually stagnant companies with a steady income that doesn't grow their value all that much. While a growing company invests their earnings to keep growing. So it is pretty much the same money, but it can be exponential growth if the money is used by the company. However, if you take your dividend and invest in another company, it will be pretty much the same result. Just that you need to be more active and keep two companies under the radar.

[@Zerotragedy]

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]

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]

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]

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]

@@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]

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

[@yasaipicles6295]

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

[@timothyyoung980]

😂

[@aaronburdon221]

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

[@WhiteWolfeHU]

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]

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

[@christophershoemaker7189]

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

[@brotheradamfromups]

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]

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!

[@dustinwagner5902]

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!

[@johncalloway5093]

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

[@smooth2365]

Up to a certain point to get the snowball effect- then when you get to your goal, you have the option to take it out to spend or reinvest. Delayed gratification

[@AdmiralStoicRum]

The idea is to grow your initial investment, once you reach a certain threshold you can stop putting so much in so that you can start paying yourself out of those dividends anything left you can put back into the investment pile grow still growing your dividends, This way you have the ability to continue setting aside money for vacations or what have you. Since you have the option of keeping any amount of dividends or not you still get paid your minimum annual sort of dividend salary

[@AdmiralStoicRum]

This is also keeping in mind that you've already paid off your debts, you'd be surprised how much money you have after you have eliminated your debt. No mortgage, no student loan, no credit card bills, what else? Car payment no need. Oh my gosh so much money that you can play with after that.

[@MrStillmans]

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

[@bighou2359]

Enjoy pb n j for 40 years

[@ndub4014]

@@bighou2359 and water. lol

[@jamesleonard4713]

@@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.

[@t0bakken1337]

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]

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]

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

[@FxAndrej]

@@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]

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

[@suttsd]

​@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

[@EffectsTV]

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.

[@lucauau]

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

[@markeh1971]

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

[@workertotraderjourney9007]

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]

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]

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]

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

[@h2t26]

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.

[@papasmurf519]

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]

Thanks! And very cool!!

[@exorgonic8780]

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

[@andrewmorales5485]

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

[@blanktintin]

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!

[@Dividendology]

💪

[@RutschnajaTeleschka]

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%

[@Red13.0]

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.

[@NikoInc]

Double that due to taxes.

[@halfbee7886]

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?

[@wemustdissent]

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.

[@FahimUniverse]

Now which ETF has a Price growth rate of 7% , Dividend growth rate of 9% and yelds 3.5%? Probably none. Investing in a single company will be foolish in this case. So we would need to invest in ETFs

[@KO-gj9ug]

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

[@ZacklFair]

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

[@KO-gj9ug]

@@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]

@@ZacklFairyou can rent it out..

[@totuudentorvi7781]

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]

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

[@Biggelz06]

JUMPSCARE at 3:13

[@cloudedjourney]

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.

[@1776_Reasons]

Honest question: I haven't done the math yet, but how does THIS method compare to investing in a growth fund, like SCHG/qqqm/etc for the same timeframe, then just outright purchasing shares of a dividend stock/fund upon retirement? TIA!

[@kodyschwartz9501]

i’m wondering the same thing

[@aceangels7153]

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]

No, just need to not make stupid decisions

[@josephbranham5770]

@@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]

@@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]

​@@aleccozi6458Shh the adults are talking

[@Spp235.]

@@jeremyvettech5562😂😂😂😂😂😂

[@tomerdaboss2747]

Why not investing monthly in the S&P500 which has 10% year growth and then switching it to dividend stocks after you reach your goal money ?

[@JoaoSantos-vo8gx]

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.

[@thebes118]

Exactly. That's the kind I buy.

[@vindex7309]

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.

[@RevGunn-jq3cq]

Then you divorce and she takes everything, you wind up living the streets

[@eitan6740]

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?

[@TheyCalledMeT]

the problem .. real inflation is well beyond 2% the 2% claim comes from nonsensical deductions like .. a pc has gotten so much faster .. a comparable pc can be bought for way less than 5 years ago therefor inflation is lower than it REALLY is

[@connerwomack9990]

What I'm not understanding is why you acount for inflation??? Would the stock price itself not go up roughly with inflation there by your dividend yeild being a set percentage would mean you are not impacted by inflation?

[@xeflatio93]

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]

WHAT! :O

[@PaulS23]

Don't you have to pay interest for leverage?

[@glupshitto5019]

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

[@kutankiziltan6790]

What will be the dividend paid annually per share at the end of 30 year period and share price? Asking this because, the growth rate of the share is 7% while dividend growth is 9%. I do not think that it would be sustainable for the company that offers dividend to its shareholders when dividend growth is ~25% more than share price growth rate in the long run. It has to stop at some point to protect the company and then this projection would be not accurate. I like the way you gather the data here to make awareness, but i guess what i am pointing here is the breaking point. This projection surely will work for a while until its un-sustainable for the company. Thanks for the video😊

[@clarkminer8650]

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

[@billdivine9501]

Selling options is a great way to generate money.

[@Zenitself]

5:22 6:39 7:21

[@FigureFourNews]

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!!

[@xzizy]

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?

[@tomjraumd]

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.

[@jeanmich6190]

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?

[@nateums]

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

[@user-yb9hi3us4p]

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]

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

[@jasonhouchins1230]

23 years at $1000 a month.

[@Ebiblefellowship]

thanks

[@Brandon_Neil]

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?

[@TortoiseInvesting]

I'm on track to hit my goals in around 14 years, my Jeep will be paid off in the next year and all those funds will to into my account, I'm looking to invest 50% or more from each paycheck when this occurs going forward. Gonna ride the way mainly with SCHD contributions but I do hold smaller individual holdings as well. Awesome stuff, always look forward to your uploads!

[@jerryc6018]

its all great on paper but what are the stocks that produce these kinds of returns consistently?

[@Skott62]

It also depends heavily on how much you want or need on a monthly basis. Professionals often throw out the phrase 'how much you need to live comfortably'. That word 'comfortably' can be defined in many ways by many people. Everyone has their own definition of it so its hard to pin down. There is no one answer for everyone or even most people.

[@LordOfOlympus]

Trying to plan an investment strategy to target a pseudo-retirement in 23 years seems quite a bit...optimistic. The actual best path to early retirement and living off your financial investments is to invest heavily in yourself (skillset wise) and acquire a high paying job, reducing all debt to 0, and then using tried and true methods for large lump sum investing (think 10k+ per month). Yes, by the time you are able to dump THAT kind of money in the market every month, you no longer need to worry about simple financial advice; but that's kind of the point and problem. You can only retire early when you, unsurprisingly, make so much money that you no longer need to worry about retiring early. Oh, and it's not lost on me that you can't just develop a skillset and pick a job off the job tree. That's part of the problem, too, lol.

[@darkisato]

You super boost the high yield dividend to help pay your mid or higher growth tier dividends also if u have a 1k per month dividend from a 10% stocks that means u can work hall as much to double the amount

[@Khobai]

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.

[@shaneomack5018]

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.

[@YourMomTastesGreat]

Itll never happen...you are too Duh

[@shaneomack5018]

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

[@tubewatcher3100]

08:18 Taxes. Brokers give non resident investors a 30% haircut for dividends on behalf of the IRS. Better to buy Brk.B and watch the capital appreciate.

[@stijnkoornstra]

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

[@mohamedzafir8566]

This channel is gold, i am 15 but im still watching

[@PNWHerb]

start investing now and you will have the Gold

[@cosmicfertilizer]

This is the video I needed. Thanks!

[@gmnod]

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

[@peaceful4you408]

It’s awful now. Due to the way our economies are changing along with the rate of inflation, people are going to have to find a way to get rich early in life when they are young. Finding a way to get rich to at least millionaire statues is eventually going to be mandatory in the future. Especially at the rate that real estate is increasing in costs. If folks don’t find ways to get rich, or at least find a way to get to their first $1 million dollars when they are in their 30s, 40s, and 50s, then retirement is going to be hell for them. 10s and 100s of thousands of dollars is just not going to cut it in retirement anymore. Billionaire status is going to be the new millionaire statistic very soon and Trillionaires will have to become the new billionaires. We will probably see our first few trillionaires by the mid to late 2020s. Give it like 4 or 5 years from now and you will see the first public announcement of our first trillionaire. It’s probably going to be a young current billionaire like Mark Zuckerberg. It could be older billionaires too like Warren Buffet if they are still alive by then though. Mark my words you’ll see!!

[@DeusZechiel]

Amazing breakdown!

[@briandevine1426]

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

[@nyacoustics8373]

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

[@ZeginMakesMusic]

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

[@Madxcot]

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.

[@lt5339]

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]

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

[@janean6512]

Great discussion What stocks seem to have this potential over last 20 years ???

[@stevenharris6626]

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]

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

[@zyxwfish]

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]

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

[@Kibatsume1]

Between stock and CDs I officially hit $4100 a year. They are right The hardest part is clawing your way to the first 100,000 Officially hit 80,000. Took roughly 6 years of penny pinching to get there and a few trades

[@leafston]

Congrats!!!

[@mahirc3543]

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

[@ToyotaJim1]

So what’s the amount?

[@zoinks933]

I feel like at the rates given its quicker, and cheaper to living off renting out properties

[@spencercurtis86]

Let's not forget real inflation closer to 10% even with the CPI change and allowing bullshit metrics like quality to spoof inflation data lol it's nowhere near 2%. You need a 10% yearly return to outpace inflation in my opinion. We also have to assume the stocks don't bust

[@watchr0b]

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

[@nickoutram6939]

This is some good advice but I would like to throw in another: do a job you actually enjoy!

[@JSAF0]

What would you do if you had about 150,000 cash right now?

[@justinhernandez1219]

I have this same question.

[@toyotahonda2618]

I tell you what I''ll do, man - Two chicks at the same time, man

[@INWMI]

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

[@nordicexpat]

Which patreon gives access to that sheet?

[@Dividendology]

Advanced and Golden!

[@ForwardThinkingIncome]

Good video and i use to be on the same page. It is called dividend chowder. However this is still slow. There is a way to to reach your goal with less than the $1,000 a month.

[@fairytalestonight8561]

So USA Stock taxed at 15%. So actualy everymoth you will get 15% less and will not able to reinvest that much. Atleast in My case. :)

[@n-da-bunka2650]

Assumptions to get to the break even aren't realistic growth/dividend ratios

[@firefighter9901]

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

[@guzzi95]

Sounds like your $7,000 monthly expense is based on a couple that are not out of debt. I am out of debt and even with my medical problems, insurance, groceries, utilities, etc. we don't spend near 7 thousand dollars a month to live on.

[@pablojescobar3400]

Does the time decrease much more if you did 2K a month instead? Seems for me anyway I would rather do 3K a month so I could in 7-8 years retire :)