fraserrc
Confused about dryer sheets
- Joined
- Jul 9, 2007
- Messages
- 8
Hi, Fraser here
Short-time lurker, first-time poster
I have seen a lot of posts regarding safe withdrawal rates but don't see many/any posts on living off dividends. My plan is to live off dividends which will likely produce 2.5-3 percent of the portfolio balance. I dont intend on withdrawing any of the capital and let it grow over time. When people talk about 3-4% withdrawal rate, are they including dividends, or is this in addition to dividends? If its in addition, then can I reasonably expect to live off say 6% of the portfolio each year?
I figure I'm 7-10 years from FI using just dividends, but if I can draw on the capital, it could happen in half the time. I look forward to any comments/criticisms of this plan.
Fraser
Short-time lurker, first-time poster
I have seen a lot of posts regarding safe withdrawal rates but don't see many/any posts on living off dividends. My plan is to live off dividends which will likely produce 2.5-3 percent of the portfolio balance. I dont intend on withdrawing any of the capital and let it grow over time. When people talk about 3-4% withdrawal rate, are they including dividends, or is this in addition to dividends? If its in addition, then can I reasonably expect to live off say 6% of the portfolio each year?
I figure I'm 7-10 years from FI using just dividends, but if I can draw on the capital, it could happen in half the time. I look forward to any comments/criticisms of this plan.
Fraser