The way most folks invest, they’ll need way more than a million bucks to retire—in fact, they’ll need almost double that!
No wonder so many people throw up their hands and commit to working till they’re 100. Maybe you’re one of these frustrated souls. With the world in the state it’s in today, I can’t blame you.
But what if I told you that you could retire on a lot less? Like 75% less.
That’s right: a fully paid-for retirement on just a $437,500 nest egg. Save up that much and you can look forward to a steady $35,000 in dividends (which is right around the average personal income in the US) year in and year out. And you won’t have to sell a single stock from your portfolio while you’re in your golden years, either.
That return is all in dividends. And those payouts all come your way monthly, too.
No more waiting three months for your next payout, like you must do with just about every S&P 500 stock. Better still, you’ll be able to keep your entire $437,500 intact. So if you want to leave a lasting legacy for your kids (or grandkids) this is the way to do it.
YOUR 8% PLAN FOR TRUE FINANCIAL INDEPENDENCE
The math on that dividend income is pretty simple: your $35,000 a year breaks out to just under $3,000 per month. To get that amount from your monthly dividend portfolio, you’ll need a dividend yield of 8% a year.
Roughly speaking, someone who saves $1,500 per month (invested in stocks) would save up that $437
K in 12 years and seven months, including the returns from putting that $1,500 per month in the market and getting the annualized gains the market historically provides over the long term. If the stock market does better than its long-term average, you could get there faster.
So while $437,500 may sound like a lot of money, in reality, it doesn’t have to take as long to save as many assume. At the very least, it definitely doesn’t take the 40-year career we’re typically told we need to be trapped in before we can retire!
Now, assuming you’ve saved up your $437,500, where can you put it to replace $35,000 in wages? Here’s a portfolio of five closed-end funds (CEFs) that invest in a variety of assets while paying you a rich monthly income stream.
OUR “INSTANT” 5-FUND RETIREMENT PORTFOLIO
5-Fund Portfolio