Invest
How Long Can a $1 Million Portfolio Last if I Spend The Dividend Income before the Interest Income?
By Investment Moats  •  July 5, 2020
When the market took a ferocious plunge this March, I wrote an article titled Retiring into a 2020 Bear Market. The first three months. One of my readers came away with a question that I thought I will spend sometime to address. (If you write in to me and I do not reply to you, it is not that I am ignoring you but that my mail box is pretty jammed up) So my reader would like to know my take if a prospective retiree setup their retirement this way: Suppose he has accumulated $1 million dollars. He will deploy his capital this way:
  1. $500,000 is invested in reits and high dividend stocks. Let’s say he expects that they generate a 6% dividend yield. This will give him a dividend income of $30,000 a year but he expects the dividend to drop.
  2. $500,000 is invested in bonds, fixed deposits, and cash instruments. This will give him an interest
...
Read the full article
By Investment Moats
Investment Moats is set up by Kyith Ng and have been around since 2005. He aims to share his experiences making sense of money, how money works and ways to grow his money. It hopes that by sharing his experiences, both good and bad, season investors can advice and critique his decisions and new investors can learn from them and find their own style ...
LEAVE A COMMENT
LEAVE A COMMENT

Your email address will not be published.

*

Your Email Address will not be published
*

Read More Articles
More from thefinance