Hi,
I'm actually scared to write this but targeting retirement in the next couple of years (my age is 50 and my wife is 48). We have no kids and our only debt is a mortgage with remaining balance of around $80K. As perhaps most people that are still working, we have most of our pre-tax assets tied up in either a 401K or IRA from a combination of jobs over the years (using an asset allocation of 75/25 with a balance of $1.5M). We started following a dividend strategy with our after-tax investments (balance of $600K) that should throw off enough dividend income to cover our full year expected expenses. My strategy has been to have what I call quadruple protection: passive dividend income + cash cushion to cover a 25% decline in dividends for 4 years + underlying dividend investments that could be sold + IRA balances. FireCalc shows my success rate at 100% but think the scary part for me is bridging the gap until SS. Hope to learn as much as possible from this site and others that are following a similar strategy.
I'm actually scared to write this but targeting retirement in the next couple of years (my age is 50 and my wife is 48). We have no kids and our only debt is a mortgage with remaining balance of around $80K. As perhaps most people that are still working, we have most of our pre-tax assets tied up in either a 401K or IRA from a combination of jobs over the years (using an asset allocation of 75/25 with a balance of $1.5M). We started following a dividend strategy with our after-tax investments (balance of $600K) that should throw off enough dividend income to cover our full year expected expenses. My strategy has been to have what I call quadruple protection: passive dividend income + cash cushion to cover a 25% decline in dividends for 4 years + underlying dividend investments that could be sold + IRA balances. FireCalc shows my success rate at 100% but think the scary part for me is bridging the gap until SS. Hope to learn as much as possible from this site and others that are following a similar strategy.