PFFR - A Strategy For $6500 Monthly Dividends From A 7-Fund Portfolio
2024-03-15 14:32:06 ET
Summary
- Building a dividend income snowball for retirement provides clarity and reduces sequence of returns risk.
- This article provides a sample portfolio of seven funds that can easily fund a retirement with a $1.5 million nest egg.
- The portfolio should generate around $6,500 per month in sustainable passive income along with a hedge against bad times hitting.
Building a dividend income snowball is a great way to set yourself up for retirement because it gives you greater clarity into how close you are to being able to live off of passive income. Moreover, since dividend income is much more reliable and less volatile than stock market returns, this approach to funding retirement can reduce the sequence of returns risk. As a result, retirees who live off of dividends can enjoy greater peace of mind during market crashes since their dividend income stream often remains undisturbed, or at the very least, is reduced by much less than the market value of stocks during such periods. As a result, they are less likely to make a rash decision and sell near the bottom....
A Strategy For $6500 Monthly Dividends From A 7-Fund Portfolio