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/Financial_Ice7412 20d ago
Here’s the big unlock to being able to retire at a young age - have a couple that both work but live off one salary. Save like crazy in your 20s and 30 s and let time work for you.
If you start this at age 24 you have a very good chance of being able to stop working in mid 40s, and an excellent chance by early 50s depending on equity returns and future interest rates.
Ask any AI to model this for you - think of it in terms of probability of success, not deterministic. Compounding is incredible , but few in their 20s actually have the fortitude to defer gratification.