BXSL - A $1.5 Million Inflation-Resistant Portfolio For Retiring With Dividends
2024-04-19 06:15:00 ET
Summary
- A recent study shows that those nearing retirement believe they need a $1.5 million nest egg.
- While numerous macro factors make planning for retirement harder than ever, fortunately living on dividends is easier than ever.
- We discuss why this is and share a dividend portfolio that can make living on a $1.5 million portfolio a reality.
A recent report indicates that those nearing retirement think they will need a ~$1.5 million nest egg in order to retire. This makes sense when using tools like the 4% Rule for retirement planning, as this would imply a $60,000 annual ($5,000 monthly) passive income stream from investments that can be added to ~$1,800 monthly for the average retired worker from social security, resulting in a total annual passive income stream of ~$82,000 assuming only one member of the household is eligible for social security. This seems more than sufficient given that in 2022, U.S. households led by someone age 65 or older spent an average of ~$58,000. With inflation, that number is now likely about $60,000. That means that retirees with a nest egg of $1.5 million can live on their estimated passive income alone while the social security checks can serve as a bit of a margin of safety for additional savings, excess inflation, and/or elevated medical expenses down the road....
A $1.5 Million Inflation-Resistant Portfolio For Retiring With Dividends