Reply to What is your "magic number" for retirement?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]While you loons are wasting your life away trying to get to $10M, many people are retiring with $600K and a paid-off house, using the strategies detailed in this article:

[url]https://seekingalpha.com/article/4661283-how-to-invest-600000-in-2024-to-live-off-of-dividends-forever[/url][/quote]

this “strategy” requires SS which means i’d have to work until age 67🤮

no thanks. i’m out mid 50s so i’ll continue to power save. [/quote]

No.  The strategy basically says that you can have a much higher withdrawal rate if you focus on high-dividends stocks.  Imagine being able to perpetually withdraw 7% from your portfolio instead of 3-4% – that’s possible if you ignore two mainstream pieces of advice:

1). Don’t buy bonds – they’re garbage.

2). Don’t limit yourself to the usual broad indices like the S&P and an international index.  While almost nothing outperforms the S&P 500 long-term, in retirement, it is problematic because it pays low dividends and requires you to sell some of your shares. Because of this, you are a lot more dependent on market cycles and the price of stocks (i.e., sequence of returns risk), and you can only withdraw something like 3-4%.[/quote]

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