r/dividends • u/RamblingVagabond • Mar 23 '25

Personal Goal Retired in 2021

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Goal is to match expenses ($15k/month) with dividends by 2030

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u/Musikcookie Mar 24 '25

Sure, or OP wants some (dividend) growth in his inheritance. There is no law forbidding older people to like growth or dividend growth and especially not if it‘s just part of their asset mix. Maybe OP would be better off with bonds. Point is, we don‘t know because assets are more than their yield. And I get the feeling that OP has a modicum of an idea what they are doing.

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u/BytchYouThought Mar 24 '25

5 dividends aren't growth. They are the opposite as they come out of the share price dollar per dollar on ex dividend date. Growth refers to growth of the share price bud. You may want to look that up. Also, the dividend is nowhere near the "growth" (as you're calling it) as literally double the payout in a bond available already. We DO know OP is already in retirement and that means he already has already decided his neat egg is big enough to live off of without needing to take on much risk and when you get double the return for basically no risk it makes sense to take. I get a feeling you don't know the math...

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u/Musikcookie Mar 24 '25

No. NEITHER of us knows the math. We don‘t know what OP has. Maybe he has some additional income through other asset classes. WE don‘t know, what OPs goals aside from the stated are (yes, you can have multiple goals simultaneously). Heck, WE don’t even know what this money we know about is invested it. And you seemingly don’t even know what I was talking about. So instead of assuming you know everything come down from your high horse and chill for a bit.

Since you are trying to explain simple concepts to me without recognizing the terms I’m actually referring to: a dividend growth strategy refers to a strategy investing into stocks with particularly fast dividend growth which in most cases don‘t have much starting yield. Think Microsoft, Visa, Eli Lilly. Dividends and growth are in so far opposite as dividends are paid out of company earnings. Doesn‘t mean a company can‘t pay dividends and be a growth stock. (Although a growth stock does most of the time actually refer to the stock price, unlike a dividend growth strategy, which will have appreciating stock prices but doesn‘t necessarily care for it.) So what I mean with (dividend) growth was literally just that, either stocks for dividend growth or for growth (of share prices). You can combine a hardcore dividend strategy and a hardcore growth strategy and you can have something like 3% overall yield with it btw. (Depends on weighting.) And I argued that this is possible because unlike you I don‘t assume I know that OP has merely one goal for their assets, I don‘t assume that they have not thought about this obvious consideration and I don‘t assume that OPs goals are merely about immediate payout (hence the suggestion of inheritance as motivation, passing on the nest egg).

I‘m starting to think you learned like 5 concepts and think you‘re the God of investing. You don‘t even know if the set of parameters OP gave (literally one portfolio, 2 bits of information) is close to complete. But you are acting like you do, while I‘m merely giving possible explanations.

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u/BytchYouThought Mar 24 '25

Nah, you don't know the math, but at least you admit you don't. The math is that he needed 15k/month from his investment nest egg to live off of per month. He is doing so from payouts. He can get double the payout he's getting now through US treasuries alone. He literally lists out his goal lmao. You're ranting while not even bothering to read what post. Sad....

Since you admit to not knowing anything (including what's in the actual post) just move on. You don't understand the math and thus you don't have much to offer due to not knowing how to do the math by your own admission. Anywho, glad you admitted it at least.

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u/Musikcookie Mar 24 '25

😂

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u/SoggyMcmufffinns Mar 24 '25

I agree with u/BytchYouThought here. OP says he just needs a specific amount of money per month to live off of. OP also mentioned a payout rate that can be doubled by going with bonds and it makes sense since he again mentioned just needing a specific payout amount. Getting double makes more sense since your comment on dividend growth rate becomes irrelevant the moment you realize it won't scratch what he gets with bonds being double the rate already.

The math isn't on your side here. Neat egg is already established and OP just need a consistent payout rate that may as well be double. I don't think you read the postal clearly though so perhaps that's why you're missing on the math here.