Dividends

[Anonymous No.57697399]

So I have around $1 Million in cash and I want to retire off comfy "set it and forget it" dividends for the rest of my life.

If I buy a diversified portfolio of dividend stocks that pay out 4% annual dividends but inflation is also at 4% then I am basically destroying the money and in 10 years I would have lost 40% of the money to inflation. It would be the equivalent of simply spending that money over the 10 year period instead of investing it.
This isn't good.

What's the best way to retire with a million dollars?
inb4 muh real estate

[Anonymous No.57697460]

Save in the most thermodynamically sound money that can be transferred globally and is unconfiscatable and unstoppable by governments backed by the most secure computer network the world has ever seen by a factor of 10 that is still in its infancy and is a product that every person on the earth desperately needs to store value in a world of fraud fiat currency.

[Anonymous No.57697474]

>>57697399
>It would be the equivalent of simply spending that money over the 10 year period instead of investing it.
It wouldn't be that bad. Because after 10 years of living off 4% returns on $1m, you still have $1m. If you had just spent that money outright, you'd only have $600k left.
If you really want to make the $1m last without losing money to inflation or whatever, then figure out a way to get better than 4% returns, or just fuck off to southeast asia or somewhere else where $1m is definitely enough to retire with

[Anonymous No.57697477]

>>57697399

Learn what money is you fuck tard.

[Anonymous No.57697493]

use your money as collateral to borrow more money and invest that

[Anonymous No.57697522]

>>57697460
Who said anything about saving? I said I want investment income.

>>57697474
>you still have $1m.
yeah but $1m would be equal to $600k today.
I would have lost 40% in purchasing power.
>then figure out a way to get better than 4% returns
Yeah thats kind of the point of this thread.
I know it's asking a lot in this inflationary clown economy, but still.

[Anonymous No.57697555]

>>57697522

Yield and rent seeking is the cheese in the fiat rat trap. Enjoy getting jewed.

[Anonymous No.57697790]

>>57697399
wait til btc comes down more and just buy that. your “dividend income” will come from just selling a little bit of it from time to time. I wouldn’t buy rn though. probably going to be a recession this year and you could probably get in at like $10k or something.

[Anonymous No.57697866]

>>57697399
crazy how people so financially retarded can make one million dollars

[Anonymous No.57697975]

>>57697555
>Yield and rent seeking
lmao you're literally fucking retarded HAHAHAHAHAHAHAHAHA

>>57697866
It's funny that you don't have 1 million dollars.

[Anonymous No.57698005]

>>57697522
you're assuming the price of the stock or underlying asset does not increase over 10 years. Am I correct to assume that the increase in price of a diversified portfolio of dividend stocks would be likely to beat inflation on average over a 10 year period? Maybe not s&p500 gains but a lot of dividend stocks are on the s&p500

[Anonymous No.57698106]

>>57698005
>you're assuming the price of the stock or underlying asset does not increase over 10 years
Often times high dividend paying stocks don't move much or even decline over 10 years.

[Anonymous No.57698125]

Based retard. Hope your plan works out.

[Anonymous No.57698595]

>>57698125
Where's your million dollars? lmao

[Anonymous No.57698609]

>>57697399
Invest in a low-cost income mutual fund like the Vanguard Target Retirement Income Fund (VTINX). Or imitate it. VTINX is roughly:
>30% global stocks
>50% global investment-grade bonds
>20% short-term TIPS
Keep your expenses low and only sell a small percentage each year (maybe 3%?) for income. Read some early-retirement books for advice.

[Anonymous No.57698645]

>>57697399
Don't most index funds that track the S&P500 also throw out dividends like 1.5%? You can just reap the benefits of growth stocks by selling shares for the other 2.5% per year while it grows instead of wrecking yourself over time with a pure dividend portfolio.

[Anonymous No.57698705]

>>57698609
>>57698645
both good ideas, thanks anons

[Anonymous No.57698770]

>>57697399
>If I buy a diversified portfolio of dividend stocks that pay out 4% annual dividends but inflation is also at 4%
So you don't understand what a dividend is. Somehow I doubt you really have 1mil.

[Anonymous No.57698830]

>>57698770
>So you don't understand what a dividend is
so you cant explain how im wrong?

[Anonymous No.57698908]

>>57697399
Buy a distributive dividend aristocrats etf

[Anonymous No.57698933]

keep investing in high growth and just sell as you need money while keeping some cash on hand in a high interest account and even less cash in your spending account

[Anonymous No.57698980]

>>57697399
I would unironically buy ATT

[Anonymous No.57699010]

>>57698770
>Not understanding there's stock appreciation on top of dividends.
Stupid poor people trying to act smart.

[Anonymous No.57699020]

>>57697399
why is the dividends meme so prevalent?
if youre going to buy risky stocks for 4% why wouldnt you just buy t-bonds that yield like 5-6% with 0 risk?
or if youre willing to take the risk of speculating on high yielding equity, why not just buy the S&P 500?
personally Id buy myself a property and put the rest in stocks/bonds

[Anonymous No.57699043]

>>57698830
The dividends don't take away from the value of the stock. They are typically a % of the stock value.

The stock value increases WITH inflation over time, and usually faster than inflation (except in struggling companies).

So, your dividends will always maintain a relatively stable value when considering inflation, or even a growing value. The only exception is if you pick dividend stocks whose companies struggle. But if you diversify your stocks enough, this is unlikely.

[Anonymous No.57699114]

>>57698933
>keep investing in high growth
But I hate having to pay attention to my stocks every day.
Is this really the only solution?

>>57699010
>>Not understanding there's stock appreciation on top of dividends.
Yeah but div stocks usually have minimal to negative appreciation>>57699020
>if youre going to buy risky stocks for 4% why wouldnt you just buy t-bonds that yield like 5-6% with 0 risk?
its not zero risk
also bonds lose to inflation, your money is locked in for 1-10 years while inflation eats away your initial investment

>>57699043
interesting
what div stocks do you recommend
no meme answers pls

[Anonymous No.57699132]

>>57699114
>But I hate having to pay attention to my stocks every day.
>Is this really the only solution?
yes but if you buy an index fund you dont really need to check it
SPY up 80% over 5 years
XLK up 188% over 8 years

[Anonymous No.57699136]

>>57699132
>XLK up 188% over 8 years
i mean 5 years, my fingers are retarded, dont know how i pressed 8

[Anonymous No.57699144]

Study Ben Graham's defensive investor strat

[Anonymous No.57699192]

>>57699132
I'm considering this, but I'm scared the market is going to crash hard in the next few years and that inflation would be too high for the fed to keep printing.

[Anonymous No.57699200]

>>57699192
i mean you can just sell when it crashes and buy when its back to normal and put your money in a high interest savings account while you wait for the market. high interest savings account is pretty similar to dividend yield

[Anonymous No.57699362]

>>57699200
>i mean you can just sell when it crashes
its hard to time that shit properly
I mean I guess I could put stop losses but I would have to constantly adjust them
and what if my stop loss gets triggered and it was a bear trap and goes up a fuckton?

[Anonymous No.57699380]

>>57699362
trailing stop loss but if you really want to be lazy you can just take the temporary loss and hold
SPY up 80% over 5 years despite going up and down from covid and ukraine war

[Anonymous No.57699388]

>>57697399
I talked to a guy about this one time. The idiot tried to retire based on this theory but the thing he didn't know and you obviously don't know is that not only are dividends not a guaranteed amount but they can also take them away at any moment. In this dudes case he not only lost the dividends but (unsurprisingly) the stock he was in lost 40% of its value. Dude had to go back to work at 56 and was this close to losing his house.

[Anonymous No.57699468]

>>57697975
You soon won't either.

[Anonymous No.57700117]

Last couple of decades, SP500 averaged 8% APY and NASDAQ 14%. You're better off buying an index fund tracker and then just periodically selling off whatever amount you need to live.

[Anonymous No.57701949]

>>57697474
Okay here are your options:
100% on the SP500. According to theory, 4% withdraws every year will not deplete the principal. However, this has been recalculated, so 3% is safer. If I understand this chart properly, it should be ok.

The problem: SP500 can be volatile as fuck. So if it crashes 50%, you will be getting a 3% off 500k for a while. You cannot raise the 3% to compensate or you will fuck up the capital even faster

2) BTC, higher returns, but even more volatility

And that's about it. Real state is fucking retarded, it's just an headache, you have your money on some iliquid asset, you cannot easily move as needed.

Dividends, as you can tell, just deplete your initial capital. It feels good to get a payment, but your principal is shrinking. You can just buy an index fund and manage the dividends yourself by paying yourself 3/12 monthly. People pay Charles Schwab extra fees to do this for them I don't know why.

Basically, what I would do is to gamble the 1 million again on a 2x. If you can get 2 million you are good to do. You now can have 1 million in high growth stuff (say, 50% SP500, 50% BTC) and then an extra million where here it doesn't matter that much if you just put it on SCHB, or even JEPI for an higher income and just enjoy life. You of course avoid buying real state like the absolute retards here will tell you to do, so you can have cashflows that allow you to rent anywhere in the world. Also avoid SEAtards or any other thirld world venues. Plenty of cool places in EU.

[Anonymous No.57701973]

>>57698609
>VTINX
-5% 5 year anualized
pretty sure you just lose money with this thing

[Anonymous No.57702029]

>>57699043
>>57698609
This fund has gone 30% in 20 years
How much has inflation gone up in 20 years?

There's no fucking point isn't it? You just HAVE to buy growth stuff to keep up, then withdraw a safe 3% and stomatch the volatility. If you aren't rich enough to still make a good living from that 3% during a crash period, you need to keep gambling on that 1 million until you can picture yourself 50% down and still be able to make a good living from that 3% on a western country. That is making it.

[Anonymous No.57702038]

>>57697399
Better hold off and wait for the Peaq launch later this year.
>home for DePINs
>EVM and multichain compatible
>Over 20 DePINs built

[Anonymous No.57702040]

>>57699388
So he put everything into a single stock?

[Anonymous No.57702073]

>>57699388
>just put it all on a single stock bro
No, they cannot take shit in any developed country. Also you are supposed to diversify when you are in the "made it" period where you want income. They can also fire you from your job at any time with higher chances than someone with 1 million being unable to make money off that capital.

[Anonymous No.57702098]

Learn about low risk options strategies. The wheel is probably the best one for your needs. It yields far better returns and will beat inflation in all but the darkest of times

[Anonymous No.57702133]

The key is to not be a pussy

60% VOO
20% SSO
10% IBIT

Safely withdraw 4.5% per year, try to hold off during the bottom of market crashes

[Anonymous No.57702151]

>>57702133

*30% SSO

All data suggests 2x leveraged SP500 funds outperform 1x, with 1.75x being the "sweet spot" after considering expense ratios, divided reinvesting, volatility and decay. The day this system doesn't work is the day the American economy has permanently collapsed so it wouldn't even matter if you had done bonds/cash instead.

[Anonymous No.57702180]

>>57702151
all data suggests deez nuts bro you are a total dick head you wanna put your money on leveraged etf's when my schlong is leveraged 24/7 do you realize what you are asking for total destruction of your portfolio the only thing you need to be concerned about is the size of my cock my gains and my epic alpha male mindset don't you dare touch any bullshit leveraged etf you will be destroyed you will lose it all

[Anonymous No.57702199]

>>57702180

Bot post

[Anonymous No.57702224]

>>57697399
Petrobrasil, gold and silver

[Anonymous No.57702353]

>>57698595
Dollars? Why would I want those...

[Anonymous No.57702367]

>>57698595
>>57702353
When I could hold sound money?

[Anonymous No.57702388]

To all the financial illiterate doomers here :
-Simply buy the best companies or even better directly SPY. EVERY trading investing strategy loses against long SPY long term.

If you think you will lose against inflation : Guess what all wealthy people make the stock market work in their favor to beat inflation. Play the wealth class game, buy SPY, V, MA, VOO indestructible assets like these because either the world end in a nuclear attack and nobody will care about the stock market either it doesn't happen and you escape wagecuckery forever.

Watch Bist100 chart (turkey index) and watch the moment the gvt started printing. It was the breakout. Same for argentina, India, japan, all europe etc...
Inflation = risk on = put everything in stocks.
Governements will not accept deflation, we are in a gay society. Destroying middle class in 10years is far easier to manage than financially crashing the whole continent to the ground.

-50% SPY (You can 2x leverage this position)
-20% V, MA (2x leverage possible here too)
-20% VOO
-5% Bitcoin for the spice factor
-5% Gold physical In case your country / region get shit.

Congrats you're set, also way less headaches than real estate. Only true winners there are professionals, others are simply midwits bagholders surviving against inflation. Not the best, not the worst.

[Anonymous No.57702465]

>>57702367
>btc
>sound money
Lmao

[Anonymous No.57702535]

>>57697399
nvidia will probably do well with all the AI shit

[Anonymous No.57702679]

>>57701973
>-5% 5 year anualized
I'm not sure where you got that number. Did you exclude dividends or something?
It's returned an average of 4%-5% over the past 10 years and 20 years. CPI has gone up an average of 2.5% per year during that time. It's not amazing, but it's better than what you cited. And it's a conservative fund for retirees, after all.

>>57702029
On average, it has beaten CPI over 10 and 20 years. 4%-5% returns versus 2.5% CPI inflation.
So it's succeeded at providing a stable income. But still, I'm inclined to agree with you.
>You just HAVE to buy growth stuff to keep up, then withdraw a safe 3% and stomatch the volatility.
Yeah. It does feel like we're in that regime, or something close to it. Stocks, bonds, and real estate have been persistently expensive and bubbly. Joe Average shouldn't be forced to play that game to save money.

[Anonymous No.57702752]

>>57702465

Eat shit and die glow nigger

[Anonymous No.57702848]

>>57702133
>>57702151
I've been planning what to do with a hypothetical 7-fig portfolio the past few months, this is pretty much exactly what I decided on.
I'm surprised I don't hear more about SSO.
If the SP500 is so safe, why wouldn't I be exposing myself to a long term 2x on it?
The short term crashes would obviously be worse but whatever, it'll go back up even more
Seems like such a gimme that it makes me feel like I'm missing something
>Our system thinks your post is spam. NIGGER

[Anonymous No.57702903]

>>57702752
>durable
That thing would get mogged by a coin in terms of durability.
>metals>paper>computer jew money

[Anonymous No.57702975]

>>57702752
>less than a pennys worth of copper in there
Vs
>3/10 oz of bronze.
Just watch out for the error 500's

[Anonymous No.57702990]

dogs of the dow (small dogs even better)
>consistent growth since your scooping up stable stocks that have room to grow
>nice dividends
>beat the market and inflation
but your math is wrong, you don't add inflation every year, that's retarded. if inflation is 10% your 1 million isn't GONE after 10 years. It's worth 10% less each year, which means (even though it's not strictly true) it's worth 900k the second year, 810k the second year, 729k the next, etc. How did you make 1 million with no idea how inflation works kek

[Anonymous No.57703020]

>>57702848
>I'm surprised I don't hear more about SSO. If the SP500 is so safe, why wouldn't I be exposing myself to a long term 2x on it?
Yeah, I think 1.5x-2x leveraged stocks make sense for someone who can handle volatility over decades, especially a young person.
One problem is the high expense ratio of SSO and similar funds. It's like 1% per year. It would be cheaper to mostly hold a cheap unleveraged fund like VOO (0.03% per year) and a little of a 3x fund (~1% per year) instead of a lot of SSO.

[Anonymous No.57703066]

>>57697399
deposited em in the bank. or if you wanna have fun of it, you go to invest in bitcoin. trade and do a community raffle for RWA in eesee is also the best way to retire with a million dollar. You can try it first tho.

[Anonymous No.57703074]

>>57703020
oh you think you know everything don't you mister smarty pants you think that because the sp500 has returned 7% per year since ww2 you can just
>2x leverage it
over 20 or 30 years and be a millionaire you stupid idiot how do you know the sp500 will keep returning 7% for the next 20 years there could be nuclear war or a depression or zombies and everything will be worth 0% dumbass go invest in real estate its the only way to get real money

[Anonymous No.57703157]

>>57702848
SP500 going up forever meme is totally dependent on by every working person in the country putting their 401k and IRA into it, as an attempt at storing wealth against fiat inflation. If BTC wins out the stock bubble will pop, whether quickly or slowly only time will tell.

[Anonymous No.57703167]

>>57703074
Thanks, Mr. Kiyosaki, I'll think about that.

[Anonymous No.57703220]

convert it all to USDT and NEXO and just stake it on nexo for 14% APY return. 140k a year for doing nothing. then move to south east asia and live like a king on half of that, and leave the rest in nexo to compound

[Anonymous No.57703313]

I wont do your research for you, but look into covered call ETFs for monthly dividend income. Mine have done a few percent worse than my SP500 index funds, but you do get monthly income.

[Anonymous No.57703315]

100% XOM

[Anonymous No.57704403]

>>57697399
Out at least 100k in crypto where you can get better yields
https://aavescan.com/ethereum-v2

[Anonymous No.57704463]

>>57703220
That shit looks risky as fuck why are they giving such high apy.

[Anonymous No.57704505]

Interesting thread, I'll keep this in mind for when my memecoins moon. I also hear there might be a major market correction within the near future or at least within the next couple years. That's THE time to buy right, when everything is on sale so you can scoop up more for your money. I remember reading that Rotshcild nigger saying you should buy when there's blood in the streets.

[Anonymous No.57704583]

>Ctrl f compound
>Only result is about a retarded crypto yield farm with huge risks
Wow biz is fucking stupid.
I'd bet op doesn't have a million and is just some faggot kid trying to write an essay for school about what he/him/xir would do if they ever hit the lottery.
And everyone replying forgot that your interest also accrues interest. So unless you're a faggot who withdraws your entire year's living expenses on Jan 1, you would earn interest the whole time which compounds over time. Inflation and dividends aren't linear, there's gonna be years where inflation is 2% and your dividends are 4% but that doesn't literally mean your food bill will go up 4%/12 months per year. This hypothetical isn't realistic in any way and is just some fag essay prompt for 5th grade.

[Anonymous No.57704603]

>>57704583
>everyone replying forgot that your interest also accrues interest
Yeah, and we also forgot to talk about how the world spins around and the sky is blue.
No shit, faggot

[Anonymous No.57704630]

>>57697399
i don't know what other answer you're waiting for other than real estate, which is the best option, retard, what do you want? dividends in US dollars? good luck with the 2.7% annual inflation according to truflation

enjoy getting robbed, oldfag

[Anonymous No.57704642]

>>57699144
based intelligent investor enjoyer

[Anonymous No.57704660]

>>57704583
he's trying to live off the dividends not put them in reit you fucking retard

[Anonymous No.57704686]

>>57697399

You could buy a Dividend mutual fund. Set the capital gains to be reinvested, but set the dividends to go into your cash account.

[Anonymous No.57705436]

>>57704583
Dividends are retarded, just withdraw what you need manually. Only if I was rich enough I would just buy JEPI because I would be too lazy to withdraw myself and only for the amount I would need to spend each month + some extra.
>>57702151
Or even better, buy MSTR for that 1.5 to 2x BTC premium (get ready for a fucking rollercoaster tho)

In any case, you need 2 million dollars according to my calculations, for a legit retirement. So you have to keep risking it before you can chill.

[Anonymous No.57705447]

>>57704630
>just have your networth stuck of unreal state guaranteeing you cannto flee country when needed

[Anonymous No.57705541]

>>57697399
You can expect the portfolio to appriciate and the dividends to increase nominally over time so it wouldn’t be that bad

[Anonymous No.57705565]

>>57697399
You cant retire, you lazy nigger
There is always risk with stocks
Thats why the safest "assest" is bonds, not dividends
Everyhting else is even more risky
So keep working, you lazy fuck

[Anonymous No.57705593]

>>57697399
>So I have around $1 Million in cash

Sure ya do Sanjay.