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There are REITs that generate 12% dividends you can easily buy, which would be $120K before tax. 3-4% is extremely conservative and you could certainly withdraw
by tempsy 7y ago
There are REITs that generate 12% dividends you can easily buy, which would be $120K before tax. 3-4% is extremely conservative and you could certainly withdraw more.
It’s also less about “never making another dime working” and more that you don’t need a traditional 9-5. You can and should figure out other sources of income.
- yibg 7y agoThere are investments that return 10+%, but that doesn't mean that's how much you should take out every year. The 3-4% (usually 4% for retirement savings) is to buffer for years where you get negative returns. I've never seen anyone recommend withdrawing 12% a year with plans to have the nestegg last a long time.
- tempsy 7y agoI was suggesting 6% not 12%. You can live off $60K as a single person even in higher cost cities pretty easily. Taxes aren’t actually that high even in CA at that level.