Here’s the Dividend Math. Want $50K/year in passive income? Learn how much you'd need to invest in dividend stocks like Microsoft or Coca-Cola. Plus: 26 passive income ideas, Kevin O’Leary’s rules, and a deep dive on $OUSA.Read in under 5 minutes.
Yes, it is possible to live off a portfolio of $500k in certain cases.
Your health should be excellent. No heart attacks, skin cancer, medications, etc. Healthcare costs can eat that $500k like candy. My Dad is 85 and has many medical issues, like glaucoma, melanoma, and polycythemia. Mom is 79 and is luckier. She has severe anxiety and requires medication. They are enrolled in Medicare Plus. It's about $700/month.
You should have no debt of any kind. No mortgage, no auto loans, no credit cards, etc. This is feasible but many don't own their living space. Renters will continue renting. Depending where you live rent could easily be $2k - $4k per month.
You will collect social security. It won't pay for everything but it will soften life's blows.
You live a humble life. Don't start planning big vacations or think about buying your dream car. Maybe you can help subsidize a college education or two.
Getting 5% on the $500k through interest, coupons, or dividends will give you $25k. Social Security will currently give $4k if you retire at your Full Retirement Age. That's another $48k. Put those two together and you get $73k. That's going to be a lean life.
I don't agree with Kevin O'Leary wholeheartedly.
Yes, it is possible to live off a portfolio of $500k in certain cases.
Your health should be excellent. No heart attacks, skin cancer, medications, etc. Healthcare costs can eat that $500k like candy. My Dad is 85 and has many medical issues, like glaucoma, melanoma, and polycythemia. Mom is 79 and is luckier. She has severe anxiety and requires medication. They are enrolled in Medicare Plus. It's about $700/month.
You should have no debt of any kind. No mortgage, no auto loans, no credit cards, etc. This is feasible but many don't own their living space. Renters will continue renting. Depending where you live rent could easily be $2k - $4k per month.
You will collect social security. It won't pay for everything but it will soften life's blows.
You live a humble life. Don't start planning big vacations or think about buying your dream car. Maybe you can help subsidize a college education or two.
Getting 5% on the $500k through interest, coupons, or dividends will give you $25k. Social Security will currently give $4k if you retire at your Full Retirement Age. That's another $48k. Put those two together and you get $73k. That's going to be a lean life.