Living Off Investments

Posts on living off investments, investment income, alternative income investments, dividend investing, covered call writing, strategies for living off investments, REITs, MLPs.

Woman Lightbulb | Creative Income Streams

Creative Income Streams

Creative income streams have been the saving grace for my family. I think they can be for millions of retirees willing to think and act outside the box.   In this post I’ll share what I’ve learned after testing and implementing over 15 creative income streams from investing, consulting, online business and real estate along with my husband. While I’m …

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Scale Time Money | Difference Between Cash Flow and Capital Gains 

Difference Between Cash Flow and Capital Gains with Chart

  There are two major reasons you invest; for cash flow or for capital gains. What’s the difference between cash flow and capital gains investing? Cash flow investing buys assets that generate income while capital gains investing buys assets with the expectation they will increase in value.   There are some important nuances with both …

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Money Sign | Retire at 55 with 2 Million 

Can You Retire at 55 with 2 Million Nowadays? [Videos]

  Can you retire at 55 with 2 million? The inspiration for this post came from exploring this possibility recently with a wealth coaching client.   Like my client, the answer for you will depend on your expenses, chosen retirement method plus current and future income streams. In this post we’ll address each of these factors.   This question hits close to …

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man over 50 looking for new ways to retire

New Ways to Retire

An exciting and promising shift is happening right now in the way we retire.  Fortunately, changes stemming from the rise of the internet now lead to rewarding retirement opportunities for those not interested in living on less while working crossword puzzles for brain stimulation in their golden years. The younger generations are living proof of …

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man sailing into retirement with income streams

How to Increase Income Before Retirement [With Video Challenge Series] 

It’s stressful knowing that the consistent (and delightful!) monthly deposit into your bank account will end when you retire.  But there are many ways you can increase income before retirement to ease the abrupt end of that sweet reliable employment income. Stock dividends, covered calls, alternative investments, various real estate investments, and even consulting or online …

How to Increase Income Before Retirement [With Video Challenge Series] Read More »

Burning Franklin | How Long Will a Million Dollars Last in Retirement

How Long Will a Million Dollars Last in Retirement?

A million dollars no longer guarantees a comfortable retirement complete with cruises and luxury cars.   How long will a million dollars last in retirement?   In this post, you’ll see.   The inspiration for this article comes from working with a 55-year-old wealth coaching client who was wondering how long her million dollars would last in retirement. Let’s …

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calculator pov | How to Calculate Investment Income

How to Calculate Investment Income

If you’re headed into retirement soon you may be wondering how to calculate investment income so you can make sure you’re covered.   Here’s how to calculate investment income. Let’s say you’ll get a 3% yield from an investment which cost $10,000. You’ll simply multiply the yield by the investment cost to get the amount of income …

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New Business | New Retirement Strategies

New Retirement Strategies

The old model of retirement no longer works for a lot of people who want to live well in retirement.  Old retirement strategies include basics like delaying social security, working longer and part time employment. But, fortunately, there are now some more innovative and lucrative retirement strategies that can be a real godsend for retirees.   Many millennials are already using some of these new retirement …

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Money Timer Flag | Alternative Wealth Solution

Alternative Wealth Solutions

  Consistently saving money and investing it in stocks and bonds builds wealth over many years. The problem is that this strategy usually takes at least two decades, and most people don’t begin this discipline until it’s too late to save enough to retire comfortably.   Alternative wealth solutions exist, however, for anyone willing to think and invest outside the …

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Bored Woman | Fear of Retirement Boredom

Fear of Retirement Boredom | 7 Cures [Videos]

For those planning to retire soon, retirement can feel scary from both a financial and a lifestyle perspective.  Fear of retirement boredom is a very legitimate reality, especially for certain personalities. Here are 7 ways to address that subtle and almost embarrassing fear that you could be bored to tears in retirement. Read my own …

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Man Whiteboard | Living Off Investment Income – Advantages and Disadvantages

Living Off Investment Income | Advantages and Disadvantages

True financial independence is reached when you can live off investment income.  Living off investment income has many advantages that often require a shift from traditional investing in stocks and bonds, but there are also a few disadvantages to living off investment income.  In this post, I’ll share and explain the 22 advantages and 6 …

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retirement key | Alternative Retirement Investment Strategies 

12 “Slightly” Alternative Retirement Investment Strategies 

If you’re concerned that investing in traditional stocks and bonds with a common asset allocation won’t provide a comfortable retirement for life, you’re not alone. We had those same concerns over a decade ago, along with millions of other investors over 50, and here’s what we discovered.   Alternative retirement investment strategies can result in higher …

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nest egg | What Net Worth Do You Need to Retire

What Net Worth Do You Need to Retire? Huge Aha

Just past midlife, many people get super focused on increasing net worth before retirement.  What net worth do you need to retire? It depends on how much money you spend, how your net worth is allocated among assets, the income those assets generate and their potential to increase in value, and other income sources.   In this post I’ll address …

What Net Worth Do You Need to Retire? Huge AhaRead More »

drive safe | Is It Safest to Withdraw or Get Investment Income

Is It Safest to Withdraw or Get Investment Income? Challenge

Updated: October 9, 2019 By definition, retirement is the time when you can live off investments. The traditional retirement model is to withdraw 4% a year from your retirement savings to live but an increasingly popular alternative is to get income from investments instead.   Is it safest to withdraw or get investment income to live in …

Is It Safest to Withdraw or Get Investment Income? ChallengeRead More »

ten blocks | What Will Stocks Do Over the Next 10 Years

What Will Stocks Do Over the Next 10 Years?

Updated October 7, 2019 At the end of the strong bull market of the 1990’s, a few brave financial experts predicted the next decade would not be a good one for stock investors.  What will stocks do over the next 10 years? Ray Dalio, Warren Buffett, Rob Arnott, Liz Ann Sonders and John Bogle have told us what …

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money puzzle | How Much Money Do You Need to Live Off Investments

How Much Money You Need to Live Off Investments 

Knowing how much money you need to live off investments can seem daunting but it’s really just a few steps and math.   Let’s say you want to generate $ 10,000 a month to live off investments.    We can back into the amount of money you need with the following formula:  Amount of Desired Monthly Income/Expected Yield = …

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how much is enough to retire

Is 1.5 Million Enough to Retire?

Is 1.5 million enough to retire? The answer depends on your age, assets, spending, investment returns and how many income sources you’ll have in retirement.  In this post, I’ll show you how to see if 1.5 million is enough for you to retire based on your own situation.   At Retire Certain, the goal of my articles is to …

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risk blocks | reducing risk in stocks

Reducing Risk in Stocks | 13 Lessons from Past Bear Markets

After surviving a few bear markets over the past 40 years as an investor, I’ve learned many lessons from them.   Reducing risk in stocks before bear markets take full hold helps investors protect their net worth as well as have capital to invest in stocks again once unusually low valuations are reached.  This sounds almost too obvious to write, but most investors don’t take …

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couple pondering | Are Dividends or Capital Gains Better

Are Dividends or Capital Gains Better?

You may have noticed that you’ve gotten both capital gains and dividends from investing. Are dividends or capital gains better? While I wouldn’t turn down either, dividends are better when you have decided to live off investments, and capital gains are better for building wealth. The Difference Between Capital Gains and Dividends While making money …

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phone | how do covered calls work

How Do Covered Calls Work?

  You may have heard that selling covered calls can increase earnings from stocks.   How do covered calls work exactly? Covered call writing is a strategy where a stock investor sells call options that give the call option buyer the right to buy the stock from the stock investor at a set price and within a certain …

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money pass computer | open in the money covered call strategy

In the Money Covered Call Strategy

  Selling in the money covered calls can be an excellent income generating strategy for those living off investments.  An in the money covered call strategy involves selling a call option with a strike price higher than the cost of the underlying stock to increase income from stocks.   After writing covered calls over the past 13 years, I have found that there …

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money tree | 4% rule dividends

Does the 4% Rule Include Dividends?

If you’re exploring early retirement like we were well over a decade ago, you may be wondering about the income provided from the standard 4% retirement withdrawal rule. Does the 4% rule include dividends, specifically? Or do investors using this popular plan get to withdraw 4% annually in addition to dividend income? The 4% rule …

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couple in retirement | when to switch from growth to income

When to Switch from Growth to Income [With Videos]

Growth investing is usually done during an investor’s high income years while income investing is usually done during retirement, but the best time to transition from growth to income can be unclear. If you’re wondering when to switch from growth to income investments, the answer depends on several factors including net worth, income sources, wealth …

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How to Buy Assets That Generate Income

If you’re approaching retirement, that anticipated time when you can live off investments or at least work fewer hours own your schedule, you’re probably transitioning to income investing. You may be wondering how to buy assets that generate income. The way you buy income generating assets depends on the type of asset you’re buying. For example, …

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man planning retirement

The Best Income Stream to Start Before Retirement

If you’re concerned about having enough income to live comfortably in retirement, you may want to start one or more income streams beforehand but you’re not sure where to start. To choose the best income stream to start before retirement, consider your desired income, eventual capital gain, acceptable risk and lifestyle. It’s easy to get …

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Pros and Cons of Income Investing

You may be thinking of transitioning from growth to income investing before retirement. The pros and cons of income investing are outlined in this post based on what I’ve learned from almost 40 years of investing in stocks and bonds with a focus on more alternative income investing for the past 15 years. While I’m …

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Problem - Solution

Problems with Covered Calls

Covered calls can be an excellent way to increase income from stocks but like all investments, covered calls aren’t perfect. The problems with covered calls include stock market risk, company risk, high capital, missing capital gains, taxes, and management. It is my belief that the benefits far outweigh the problems with covered calls for income …

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retirement nestegg | Are covered calls a good strategy

Are Covered Calls a Good Strategy?

In this time of low dividend yields, increasing stock income by selling call options on stocks you already own sounds pretty appealing to yield hungry investors. Are covered calls a good strategy? Selling covered calls increases income significantly while decreasing risk making them an excellent income strategy for stock investors.  In fact, you can add …

Are Covered Calls a Good Strategy?Read More »

weighing pros and cons | owning a business vs real estate

Owning a Business Vs Real Estate | What I Learned from Each

Every day more investors are getting into entrepreneurship or real estate and you may be wondering if either makes sense for you. The opportunities from owning a business vs. real estate vary based on 9 factors including time, capital, risk, income potential, wealth building potential, leverage and ease of implementation.  In this post, I’ll share …

Owning a Business Vs Real Estate | What I Learned from EachRead More »

What Are the Risks of Bonds? Chart Stocks Vs Bonds

  Updated August 8, 2019 Investing in bonds definitely has risks, contrary to what many investors think. Just what are the risk of bond investments? They include interest rate risk, default risk, inflation risk, call risk and economic risk. The fact that bonds are used to offset risk from stocks, and the very long bull …

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Risks of Income Investing

Income investing comes with both risks and rewards, just like all investments. The risks of income investing in bonds includes interest rate risk, default risk, inflation risk and more. And for stock income investors, there is bear market risk and political risk. Both bond and stock income investors face company or entity specific risk and …

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money roll | Covered Calls for Income

Covered Calls for Income – Example of a Recent Strategy I Did with ROI [Charts]

Most investors own stocks in their portfolio with the expectation to build wealth while also getting dividend income. But many investors don’t realize they can sell covered calls for income on their stock holdings, without increasing risk, and get 6 to 9 times the income that’s derived from dividends alone. Why isn’t everyone selling covered …

Covered Calls for Income – Example of a Recent Strategy I Did with ROI [Charts]Read More »

dessert | How Much Money Do You Need to Live Off Investments

How Much Money Do You Need to Live Off Investments? [Videos+PDF]

  Updated February 3, 2020 Living off investments defines financial independence. Just how much money do you need to live off investments completely? Get a good estimate by dividing your annual desired income by the expected yield. For example, if you want $10,000 a month in investment income, divide $120,000 ($10,000 x 12 months) by …

How Much Money Do You Need to Live Off Investments? [Videos+PDF]Read More »

couple spread arms | How to Get More Income from Investments

How to Get More Income from Investments – 44 Strategies

  Investors spend most of their lives concentrating on investing for growth vs investing for income. The way to generate more income from investments, then, is to simply shift your overall objective from growth to income.  Here are  44 ways to get more income from your investments ranging from stock dividends to alternative income investments, such …

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couple couch | Is Your Retirement Income Goal Impossible

Is Your Retirement Income Goal Impossible?

Are you concerned about having enough money to retire? Does it seem impossible to reach your retirement income goal? I get it! About a decade ago, after facing the realization that income from stocks and bonds alone may not sustain our standard of living for life, we set a retirement income goal to replace our …

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money pile | Does Living Off Covered Calls Really Work

Does Living Off Covered Calls Really Work?

Are you wondering if living off covered calls is feasible? Over ten years ago, I wrote my first covered call, and I’ve written hundreds of covered calls since then. Here I’ll share why living off covered calls alone can be challenging, and some solutions if you’re considering this little known but sensible income stream. Is …

Does Living Off Covered Calls Really Work?Read More »

burning dollar | Retirement Withdrawal Strategies

Retirement Withdrawal Strategies – Do They Still Work?

Have you heard that the past reliable retirement withdrawal strategies don’t work anymore? Well, there is good news, and bad news around that rumor. The good news is that retirement withdrawal strategies can work for those seeking to withdraw 1 to 4% a year from their investment accounts as a passive source of funds. The bad …

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coin stacks | Income Producing Assets That Shine

Income Producing Assets That Shine

Are you searching for income producing assets that pay you consistently, often, and much more than the low dividend rate that you get from a stock portfolio nowadays? In this article, I’ll share with you 9 income producing assets. We are currently using all but one of these income producing assets as of this post, …

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coffee work | how to live off investments

How To Live Off Investments During Low Interest Rates [Videos]

You may be wondering how to live off investments, especially in this day and age of extremely low interest rates when your investments don’t earn much income. Simply put, you can live off investments in one of three ways:  Spend your savings and the growth from that money Spend the income your savings generates for …

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