LogFAQs > #972804507

The dividend strategy doesn't make sense, its simple and passive but the actual income amount is such little return on investment and its inconsistent year to year. On top of that you're paying income tax on dividends. Don't get the obsession here with that. You're better off following the standard bogleheads strategy of DCAing index funds and forgetting about it, then once you retire live by the 4% rule. If you put in $500 a month, in 25 years it'll be nearly 600k and 4% rule would get you 25k per year and that would go on forever and it would never run out and continue to grow. If you want to increase it to 7%, you could withdraw over 40k per year and it will never diminish in size, it would simply remain where its at. Work extra, push it to 1000 per month in investments and in 25 years it'll be over a million, and even 5% withdrawl will get you 50k per year.