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Living off dividends doesn’t live rent free in my mind. The opportunity cost is real. I can reinvest or find an additional opportunity to invest in with the funds I don’t need to pay expenses, donate or have another needful commitment to support. So, not rent free, but definitely first world problems. Take care of you and yours (and theirs too).
I started 20th October, last year. Had my biggest dividend day of $6.25. I have managed to invest just over $5000. I’m 35 I’m hoping to retire in 20 years. Your channel is so inspiring.
I started my dividend portfolio over 40 years ago, I’m 66. My holdings are many of your recommendation. I’m at 35k a month in passive income. I started small in the beginning. It takes time and the magic of compounding. Stay the course.
wow, amazing can you tell us abit more on how much you were contributing at the start? My dividend portfolio has hit 250k at 30 and hope you be like you one day!!
I explained my 15 year goal to my wife 2 days ago. 50,000 per year in dividends. I'm in my 60's and retired and started investing last year. This dividend income is for my wife after I've departed this world. Love seeing younger people investing instead of letting life get in the way like I did.
Agreed and I thought the same. Personally, I think a more realistic goal should be 10 years. That's when compounding starts to really show, almost regardless of the contribution rate. If you take Munger's advice on how to get there, you can frontload it a little, but it's not a negligible lifestyle cut to make it a reality.
remember you can withdraw you ROTH IRA *Contributions* any time, without penalty. It's just the profit on investments you need to wait till 59.5 to withdraw without penalty. With 15+ years of contirbutions you may be able to withdraw the dividends your ROTH creates w/o penalty till you hit 59.5. It should, at least, close the gap a bit.
Another great thing to factor in is if you are all qualified dividends whenever you do hit fire, taxes will be even less of a hit on you, making living off dividends that much easier! Hope all is well man! You keep it so real and straight forward.
I've been investing for about 5 months. I'm up to a little over 1000 invested. Thank you for the inspiration and shedding some light in this tricky game! Keep up the great work!
@@rynewilliams this is my situation exactly, I started back in February after watching one of your videos and I am up over my first $1000 invested. Thanks for what you do.
You could cut that 15 years down. Leverage and debt is your friend if you use it correctly. For example you get your portfolio to 350,000 returning 5.5% yield probably be higher in 7-10 years if you've been building it lets just say the 5.5%. thatd only be 1,604.16 a month. You leverage the portfolio for a 220,000 business loan at 6% interest for 20 years. Thatd be about 1,600 a month payment. You use the funds to buy real estate, a 4 plex or 4-5 2-3 bedroom rental properties. 200,000 is spread out among the 4-5 properties or a 4 plex for down payment put renters in to pay monthly rent. Need to work out the rent to draw 500-600 a month out of each unit at 500 for 4 units that's 2,000 a month. your portfolio is kicking 1600 plus 2000 rent minus 1600 payment puts you at 2,000 a month and you still have another 20,000 to put away either as a buffer to pay for any non rental months or back into the dividend portfolio for more dividend income, just an example. Hope that made sense. Having that portfolio opens up so many possibilities.
Very inspiring! Like you said, $2500 may not cover everything, but it gives you options as you get older, and something to fall back on, in an emergency.
Super inspiring, thank you! Man I'm also thinking almost every day about Financial Independance, this shit is contagious haha... I'm in a quite similar situation: 32 years old and aiming to reach FI at ~40, except I'm French and been living in Poland for 10 years where the cost of living is low. From there either I'll COAST FIRE switching to a part-time job or I'll keep working my 9 to 5 until I'm 45 and closer to a FAT FIRE. It's also worth simulating different FIRE scenarios with variables like inflation & income going up, kids and bigger real-estate it requires, etc.
Health care, is going to be a huge expense, unless you move to a low cost country. Many ppl don't factor that in. Wish everyone luck with ur plans but please don't underestimate Health care
Most opinions I was given were to load up on growth to keep the tax low then sell down the road into higher dividends, I’m 35 and I still don’t know what’s the best route for me
I wish you the best of luck, buddy. I started late and I am trying my best to get to about 30% from personal investment dividends, 30% pension, 20% thrift savings (401k), and 20% IRA and Social Security payments.
I turned 40 last November. Plan is to have my mortgage paid off by 45 at the latest and retire at 50. I will have a tough decision to make in the next five years, which is, do I sell off a chunk of my DGI portfolio to pay the mortgage off or just keep plowing capital into both?
Nice vid. I. A growth E.T.F. myself once i retire i will tunr to dividends. Right now my 3 fund portfolio is on fire 🔥. QQQM, VGT and SMH. I have 12 yrs to go. Lets see what happens 🤞🏾🤞🏾🤞🏾🤞🏾
Because I started late (in my late 40's) my plan is to retire right on the button, hopefully at 65 probably at 67, so my goal is 15 years too. I have 3 streams, my ISA (tax efficient investment instrument) my company investment plan (all ETF'S) and my pension plan which is currently managed but because I don't like the fees so I'll be moving to a SIPP. Currently investing £750 - £900 pm across the 3. Wish I'd started this at 30 rather than nearly 50 because I'd probably be retiring in the next 2 to 5 yrs...
Great video! Just be wary of the in-built assumptions in you projections.....we are already in a deep per-capita recession in most developed countries and Depression era conditions could be upon us in the next 2-3 years. Many companies will be filing for bankruptcy in this period, especially smaller-to-medium sized ones. Just be sure to protect your portfolio and have defined exits!
I guess my biggest thing is nerves I don’t know what to really put my money into but also know I need to get started I’m 23 and I know the earlier you start the better I wanna build my portfolio and I’m thinking of putting 200/month aside for Voo and im watching your videos learning how to calculate this stuff
And I’ve got a question I’ve just opened a Roth IRA account with fidelity do I put Voo in that Roth IRA or do I put a high dividend paying stock in the account
I think VOO is fantastic...you can't go wrong with that! And yes, you can buy VOO in your Roth IRA. That's what I personally do as well. I have SCHD and VOO in my Roth IRA
Hey! Huge fan of your videos! I had a plan to live with dividends in 8 years I would be 40 at that time. But now I just decided to take a breather from investing. Made the worst financial decision. Bought my dream car.😅 I want to spend some money on my family and myself a bit more now. I have atm around 400k includes one debt free aparment that have tenants and stocks. I get dividends about 1200€/month. Now I invest only world index monthly for a while that I dont need to stress about individual stocks. Keep up the work I can definetly tell the feeling is so good when the money works for you🎉
That’s incredible I hope I get to this point and I’m looking to hopefully one day be able to do the same thing! This is an inspiring comment I pray that I’m doing the right thing I’m just starting out trying to learn all of this it’s so much to learn!
Suppose a person has considerably more invested in the market already but the annual dividend is only $7000. I want to preserve my savings for future generations while having dividends for bills. Where does one start to get this portfolio to bring in a more lucrative dividend income?
When it comes to building up your dividend income, there are a few different ways to do so. You can A) buy higher yielding stocks, B) reinvest your dividends to buy more shares, or C) buy dividend stocks with high dividend growth CAGRs that will aggressively increase their dividend payments over time. Ideally, you would do a combination of all these things. Items B and C will grow your dividend income over time, so patience is definitely required, while item A will raise your dividend income immediately. With that said, I would not just go out and buy the highest yielding stocks/ETFs you can find. I think the best approach is a more balanced one that incorporates some dividend growth. You want to make sure your income continues to grow over time.
Every time i thought of one you said it. But since you didnt mention V i still think its a buy of course you know that already because you just bought it. But other than that maybe ups, pfe, and wu
Man i am now thinking i dont need much; jusy generate even 1500/2k a month and go live in some country that the cost of living is incrediably low and just keep visiting here.
Ryne, I use your spreadsheet to track my portfolio (thank you for providing this for free) but i am currently having an issue where the dividend yields in the positions box and the yield on costs keep disappearing, they reappear every now and then but it completely changes my entire dashboard and the rest of the spreadsheet. I had this issue before and it was rectified when i download a newer version but i have tried this multiple times with different email addresses and on different computers on different wifi networks and it is refusing to cooperate. is this an issue on my end?
Hey Ryne, I'm new to your channel. I've been asking several dividend RU-vidrs this same request. Is there anyway you could make a video on ETF ticker KNG? there isn't much on YT about it and it seems to be too good to be true. It has price appreciation, as well as both a yield and 5 yr CAGR in the high single digits. Thanks!
I really need to get back to contributing to my pofolios, ever since medical situations came up, and the stock portfolio and Ira together are over 144k I just been letting combined do the work.
Question, why not keep the money in a money market account? What if a stock like Realty Income was to go down in the future? I could see a great opportunity with Lowe’s and J&J
Because you get paid a dividend based on how many shares you hold. You have to make a choice. Nothing is guaranteed. A money market only gets a good rate if you go through a major bank and they have shown their true colors in recent years... Credit Unions you can't make caca off of a money market. If you DRIP you can accumulate shares with dividends that are tacked on to what you got. So next divvy payment is a bit more. Multiply this by 15 years and you can accumulate a lot of shares and the increased dividend payouts that come with them. You never know if you are getting a 3m, who have been around for a century and have a generous dividend. If you were able to accumulate 10000 shares of 3M, you would be making $28k a year in just dividends right now. If you have multiple divvy stocks you have been feeding over the years, you get those divvys as well. Not unreasonable to think you can get to $50k a year of passive income for retirement on top of whatever else you saved up as long as you stay the course and diversify investments.
Right now, a money market fund can be a solid place to park your cash. However, like anything else, money market funds have their pros and cons, especially when compared to investing in stocks. The biggest advantage is that you don't risk losing your principal, meaning your initial investment will stay safe and you won't have to worry about losing money. On the downside, you won't benefit from potential share price appreciation in the same way that you would with stocks. Additionally, while the high-quality dividend-payers (the kind that you'd want to invest in) tend to increase their dividends over time, you can't count on the same from a money market fund, especially if interest rates start to decline. Overall, if you're saving money for some short-term use (a vacation, down payment for a house, etc.), a money market fund or a high-yield savings account would be a great place to park it. However, if you're saving for retirement or some other long-term goal, investing in stocks that grow and appreciate over time might be a better way to go.
@@rynewilliams Well said! I should be transitioning out of the money market soon as I see so many deals at the moment. Nike, UPS, Ulta, JNJ and much more seem very appealing. Any thoughts on Nike and UPS? UPS pays a very handsome dividend dude.
Not sure why, but market beat says Ford stock will be about $460 million USD by year 12 on a $100 a month investment... starting with just 1 share and going from there. :/ this confuses me greatly. any idea whats going on with this stocks stats?
I was silently hoping that when you did the taxable account calculation that when you reached the goal you'd be 60 years old again. Would be fun to see the keyboard go flying across the room :)
You're almost surely going to find a short cut or two, and beat your projection by a mile. A side deal in real estate, a few swing trades, or an especially good year or so. I will leave the old folks home and check up on you -- better have $1M or else, buddy! 🤭
Great, inspiring video, Ryne. Just a comment. Your taxes in your taxable account will be more than 15% since you have REITs in there. Also, I didn't like your recommending your subscribers to use SKWAD; they should spend some time and do the work manually in Excel or Google Sheets. Thanks.
@@rynewilliamsIt seems fairly safe, but people who want to do budgeting should plan properly. Bank transactions don't tell the whole story. Many times people pay cash or use a credit card to make purchases. (In our case, we make every purchase with a credit card that pays us cash back.)
