Dividends, Investing

My Dividend Retirement Plan

By Kanwal Sarai
Categories ▾

Well, this is isn't my dividend retirement plan, but it's very close. Dividend Growth Investor wrote a great post on his blog that I'd like to share with my readers. In fact, after I read his post I realized this is exactly what I would've written myself.

Dividend Growth Investor writes:

"I invest in dividend stocks, in order to generate a sufficient income stream, that would meet and exceed my expenses in retirement. Retirement to me is the point where my dividend income exceeds my expenses, which means that I no longer have to work for money. I am a big proponent of value investing, which is why I would only consider myself financially independent whenever the dividend income stream generated by my portfolio exceeds 1.5 times my annual expenses.

In order to get there, there are several simple, but crucial principles I need to follow."

Click here it read the complete blog post.

Thanks Dividend Growth Investor for sharing your story!

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Kanwal Sarai

With more than 27 years of investing experience and a passion for investing and teaching, I demystify the world of investing. My goal is to help you grow your net worth by investing in quality dividend paying stocks. Build your own stream of increasing income today.

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Comments
  • Integrator
    Reply

    I am aiming for a 20% buffer on top of my expense run rate. You don't necessarily aim for full income replacement to be financially independent, but a slight buffer to expense run rate is probably sufficient, particularly if you have a portfolio with strong dividend growth.

    Of course, getting to full income replacement with passive dividend income would be terrific also!

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