Sun Nov 03 2024, by Tyler Gardner

Retirement PlanningInvesting in StocksFinancial IndependenceDividend StocksMarket Strategies

Here is Exactly Why I Will Retire with 100% Stocks in My Portfolio

I'm Tyler, a former financial advisor and portfolio manager. Now, I create financial content to help you navigate your investments without added costs.

1. Investing in Stocks

My strategy involves investing 100% of my money in stocks, utilizing either a blue-chip dividend fund or individual dividend stocks, with an expectation of at least a 3% annual dividend yield.

2. Living Off My Portfolio

Since I can't rely solely on a 3% yield during my go-go golden years, I plan to sell an additional 4% of my stocks at the beginning of each year. That puts me at a 7% annual income.

3. Historical Returns

Historically, stocks have returned about 8% in real terms. With this plan, my portfolio is likely to triple over the next 15 years. The initial 3% dividend will easily cover my annual expenses.

4. Market Downturns

For those concerned about market downturns—like a 25% drop in the first year of retirement—consider this: If I don’t sell and stick to my plan, in 20 years, I will have only doubled the value of my portfolio.

If any of this is helpful, please like and follow for more insights, and I’ll continue to guide you on your financial journey.

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