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

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 …

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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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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 …

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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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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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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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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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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 …

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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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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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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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