Crnhzkr
Dryer sheet wannabe
Simple, right? I should just quit my job and start living off my savings. I thought it would be that easy when I was accumulating. I figured that once I hit my goal of $XXX, that I could just retire and live off my X’s but now that I’m knocking on retirement’s door I’m struggling on how to take that next step. I’ve been thinking a lot about dividends lately. If I could average around 4% dividend income, I’d never have to touch my principal. Is that a realistic goal? Of the 50 dividend aristocrats, only 6 yield 4% or more and the highest yielding dividend ETFs I’ve looked into only pay around 3%. The plan I’m trying to draft would likely call for a mix of aristocrats, ETFs, and some REITS & MLPs to bring up the overall average, but at this point it’s just an idea and I’m trying to figure out if it’s a good idea.
My details:
I’m in a good place, but I’m struggling on how to get from here to there. Do I just start taking out %4 from my principal and paying the capital gains taxes? Seems that I ought to be able to figure out a reasonable plan to generate income from my nest egg and never touch the principal. I’d appreciate any thoughts and advice.
My details:
- The date I’ve penciled in to retire is March/April of 2021, but a lot of things could happen to move that date forward or back.
- My wife and I are both 58. She plans to keep working for another 5 years. She only makes about $30k, but we can get health care through her.
- Nest egg consists of about $1.4m earmarked for retirement ($1m traditional IRA/401K, $400k ROTH) and another $500k in taxable accounts.
- No debt.
I’m in a good place, but I’m struggling on how to get from here to there. Do I just start taking out %4 from my principal and paying the capital gains taxes? Seems that I ought to be able to figure out a reasonable plan to generate income from my nest egg and never touch the principal. I’d appreciate any thoughts and advice.