Strategies for Living Off Investments

Posts on strategies for living off investments, living off investment income vs gains, estimating how to live off investments, interest on a million, how much to invest to make $10,000 a month, planning income from investments

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 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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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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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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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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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 …

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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 …

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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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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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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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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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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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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 …

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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 …

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How Much Money Do You Need to Live Off Investments? Choose From These 3 Layers

  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 the  yield (5% in …

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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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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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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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