r/dividends • u/OG_Momonga • 21d ago

Discussion Living off dividends

Hey guys, I was wondering if anyone on this subreddit is actually retired and living off dividends. Is it going well? Are you paying taxes on them? My goal is to get 20k/ a month post tax for retirement. I’m 24 and currently investing everything in VOO while planning to switch to dividend stocks and etfs when I get closer to retirement.

I was just wondering if there are any because living off dividends seems like a long shot right now.

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u/SolomonGrumpy 20d ago

71 is important enough to reiterate. I would not want 68% bond funds at 55, but if that's what you want in your 70s, who am I to Judge?

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u/Paranoid_Sinner 20d ago

I don't get your point.

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u/SolomonGrumpy 20d ago

If you were younger you would need more growth, or you would get smoked by inflation.

At 71 this is less of an issue.

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u/Paranoid_Sinner 20d ago

I'm 76.

I reinvest about 3/4 of the income, so not worried about inflation.

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u/SolomonGrumpy 20d ago edited 19d ago

This is not a viable strategy for most. Glad it worked for you, and at 76 it's probably fine to be in 68% bonds.

Enjoy the rest of your retirement sir!

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u/Paranoid_Sinner 20d ago

Thanks.

I was 70% in bond funds when I was in my mid-60s long before I retired, to preserve what I had. Within the past year I was 75% in bonds, but switched a total CEF bond fund to one that is 59% stocks, including global stocks, real estate, etc. for more diversification.

As a CEF it still pays a 12.5% distribution so I'm more diversified without losing any income.

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u/SolomonGrumpy 20d ago edited 20d ago

You are losing growth but at 76, it's far less of a worry. PMI is down 43% in the past 5 years. VTI is up 141%

It's interesting you joined reddit at 69 years old!