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

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[quote=Anonymous][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]

If anyone has ever inherited a stock portfolio you may have seen this. Both my mother and my MIL had similar stock strategies which was basically "all in, all the time, never sell"  with no more than half their money in mutual funds/ETFs. Both started investing when there were no index funds. You invested in companies you knew. I'm also an all in, all the time, never sell but with index funds.  When I inherited these old timey portfolios and took a few months to see what was what it was the first time I saw what widows knew: A robust portfolio of CAT, JNJ,KO etc lets you live off that income and let your portfolios grow for decades. I dont need the income now, but later on, for sure moving that way.[/quote]

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