dividend stock ladders

[guest]

Hello uncle mick.  I am not familiar with taking your
expenses and "multiplying by 25".  What is that supposed to give you?  A 25 year required income stream?

John Galt

I use the 25 multiplier as well...basically it corresponds to the 4% SWR...i.e. for every $1000 of expenses you have per year, you need $25,000 invested; conversly, for every $1000 of income you can generate, thats $25,000 you DON'T need to have invested. Its a quick and dirty calculation...but I find it helpful.

Another example, if you can figure out how to generate $10,000 per year income stream that is not coming out of your nest egg, then thats like having an extra $250,000 of savings.

 

[FIYes]

Hey, glad to see some other folks enjoy the "drip" hobby. In my case, it is definitely a "hobby" Very little money invested and I don't count in my funding for retirement.

I got started in this when I was in an investment club a few years ago. The club folded and and the shares were distributed to the membership--so I have a few shares of several stocks. Some I would probably sell---but not worth the tax bother. Others I have added a little cash to over time. Also, I have a couple of drip stocks that I acquired outside of the folded investment club.

On the downside--a couple of weeks ago I got a check for $19.15 for a spin off from one the investment club stocks. It came with a three page instruction sheet on how to figure the cost basis---for 19 bucks!!!

 

[cute fuzzy bunny]

I got 3 of those in one year about 3 years ago.

I briefly daydreamed about forgetting about them entirely until 40-50 years from now when I'd discover they had become the "microsoft" of their industry, the shares had added 10 zeros in value, and then the companies had gone bankrupt.

I promptly sold all three while the cost basis was still fresh to calculate.

Some "unlocking of the shareholder value"...