Many people dream of retiring at a relatively young age and then living off the income from their investments.
For many retirees, shares form the backbone of their retirement portfolios.
In the long run, stocks can be expected to offer reasonably high returns and can offer above-inflation income opportunities as well.
However, is the idea that an investor can retire and live off their shares simply unrealistic?
Or, is it possible to own a diverse range of stocks and lead a comfortable retirement?
Let’s dig deeper to find out.
Return potential
As mentioned, the returns on shares generally exceeds the returns on all other mainstream assets in the long run.
Holding assets such as cash, bonds and even property is likely to garner a lower return than if the cash had been used to buy a diverse range of strong companies.
Therefore, in the long run, it seems logical to...