Earn $2,000 in Monthly Retirement Dividends With 3 Easy Steps
Dividends are an important part of most retirement income plans. Without cash flow coming from work, you'll rely on your own investment portfolio to supplement Social Security benefits. It's probably not fair to call any of the steps below "easy," but they're absolutely reasonable goals for many households. Every family's financial circumstances are unique, but consider the underlying strategy and principles below that make these steps work.
Not all dividend income strategies are built the same, but there's only so much yield you can achieve without taking on excessive risk. Stable dividends usually carry dividend yields between 2% to 3%. You might find some overlooked stocks yielding 5% to 6%, but that's somewhat rare and generally means you're taking on a bit more risk.
As a result, your monthly dividend income depends on the amount of assets you accumulate in an investment account. Saving is the first step in asset accumulation. The average personal savings rate in the U.S. has fallen between 5% to 10% of total annual income in the 2000s. That's substantially lower than in past decades. With fewer retirees receiving pensions today, saving a high percentage of income is more important than ever.
Source Fool.com
