How To Make $500,000 Last Forever
The Only Reliable Retirement Solution: No Withdrawals
Rather than rely on, say, a 4% annual drawdown for income, the only
dependable way to retire and stay retired is to boost your payouts so
that you never have to touch your capital.
This is easier said than done, and obviously the more capital you
have the better off you are. But with rates and yields so low, even rich
guys have a tough time living off interest today.
You can actually live better than they can off a (much) more
modest nest egg if you know where to look for lesser-known, meaningful
and secure yield. I’m talking about annual income of 6%, 7% or even 8% –
so that you’re banking up to $40,000 each year for every $500,000 you
invest.
And you’ll never have to touch your nest egg capital – which means you’ll never have to worry about stock prices.
The only thing you need to concern yourself with is the
security of your dividends. As long as your payouts are safe, who cares
if your stock prices swing up or down on a given day?
Most investors know this is the right approach to retirement. Problem is, they don’t know how to find 7% and 8% yields to fund their lives.
(Forbes.com)
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