12-02-2013, 01:21 PM
My plan is to try to build a large enough nest egg where I am able to live off of the dividend income in retirement and not have to sell any of my shares(assets).
However, if I for some reason do fall short but still close, I will most likely take a hybrid approach. I will first use the dividend income stream but will be forced to close any gap by selling off a portion of my portfolio each year. As I continue through my retirement phase, I will be required to sell more and more each year because I will be earning less and less income on fewer and fewer assets.
I'm still ok with that approach as long as I'm comfortable not to run out of money. However, it does leave less of an inheritence behind which I'm sure will displease my heirs. But they can take the lessons I've taught them along the way to do the same thing.
So, first goal is to live completely off the dividend income. If for some reason I fall short I will turn to strategy two.
However, if I for some reason do fall short but still close, I will most likely take a hybrid approach. I will first use the dividend income stream but will be forced to close any gap by selling off a portion of my portfolio each year. As I continue through my retirement phase, I will be required to sell more and more each year because I will be earning less and less income on fewer and fewer assets.
I'm still ok with that approach as long as I'm comfortable not to run out of money. However, it does leave less of an inheritence behind which I'm sure will displease my heirs. But they can take the lessons I've taught them along the way to do the same thing.
So, first goal is to live completely off the dividend income. If for some reason I fall short I will turn to strategy two.