Disclaimer. Nothing on this thread either posted by me or anyone else should be considered investment advice. Just a general discussion around thoughts and models long before, getting close, at retirements, into retirement....
Ok, as I turned 58 I am really starting to think about retirement, at least in my current form of employment. Several reasons for me. I hate the risk every night that a staff or a resident will have a very bad outcome out of my control but for which I will be held responsible. Also because males in my family do not live too long..historically 75 is a top end and that is for normal sized relaltives. I am 6'6 and around 290# so not the longest prognosis and I would like to enjoy some trips with the wife. Another reason is ESG emphasis in my industry and I simply an not that leader. I believe in raising all ships and that is not what is wanted right now.
So, I think I have a 5/6 year window at most for current job. Looking at retirement models I am wondering if I am too late to move to a Divident Growth Investment model. Should have started 5 years ago I think.
Anyone else looking at retirement cash flow options?
Disclaimer. Nothing on this thread either posted by me or anyone else should be considered investment advice. Just a general discussion around thoughts and models long before, getting close, at retirements, into retirement....
Ok, as I turned 58 I am really starting to think about retirement, at least in my current form of employment. Several reasons for me. I hate the risk every night that a staff or a resident will have a very bad outcome out of my control but for which I will be held responsible. Also because males in my family do not live too long..historically 75 is a top end and that is for normal sized relaltives. I am 6'6 and around 290# so not the longest prognosis and I would like to enjoy some trips with the wife. Another reason is ESG emphasis in my industry and I simply an not that leader. I believe in raising all ships and that is not what is wanted right now.
So, I think I have a 5/6 year window at most for current job. Looking at retirement models I am wondering if I am too late to move to a Divident Growth Investment model. Should have started 5 years ago I think.
Anyone else looking at retirement cash flow options?
I think I understand where you are trying to go. I am not an advisor nor do I know a lot. I have however, saved enough to live on my savings and still sleep well.
Div Growth is a long term strategy. Fidelity's 45% model suggests you need savings of about 10x your current earnings. So, if you have that in savings now, a Div Growth Strategy seems to make sense. Alternatively, if you have a current savings base where a 2% yield (2% is the long term average yield of S&P stocks) will get you to 10x by your retirement date, a Div Growth Strategy seems to make sense. A savings base short of that seems to indicate you need either additional savings or higher yielding (more aggressive) investments.
In retirement, I keep about 35% in stocks and ETF's that yield about 2.5 to 3%. The rest is more aggressively invested except for about 1 year's RMD equivalent which remains liquid. This allows me to avoid selling investments in a down market to meet the RMD requirement, provided the downturn lasts no more than 2 years. So far, that has worked.
Last edited by MickintheHam; 02-12-2023 at 12:27 PM.
I should have noted in the above post you may want to seriously investigate preferred stocks. While they trade in a narrow range and you may miss out on stock growth opportunities, Yields are significantly higher generally in the 3% to 5% range.
I should have noted in the above post you may want to seriously investigate preferred stocks. While they trade in a narrow range and you may miss out on stock growth opportunities, Yields are significantly higher generally in the 3% to 5% range.
Thanks Mick. I worry I am too late for a true DSI model as my horizon is 5-8 years. As I understand it if you find stocks that have a proven historical dividend growth rate and find it at say a 3% dividend to day and the dividend has increased by 3% per year that means in year 10 it has a 5% dividend. If you build a portfolio around that model you technically have a portfolio returning a 5% dividend annually in 10 years.
But it is finding those companies committeed to increaseing the dividend on an regular basis. I think common examples are McDonalds and I know Stanley Black and Decker is a popular choice right now.
I know I am not interested in annuities. I also know I do not plan on having my current income level at retirement. I am focusing more on what our current cash flow is vs Current income. By the time I factor in what Uncle Sam and Aunt Virginia take out and reduce by my current retirement and savings contributions and if I take out mortgage debt payments (I assume we will always have a car payment) we will need a lot less cash flow in retirement than we need currently.
If you google Dividend Aristocrats, there is a listing of 67 S&P 500 companies that increased their dividends over the last 25 consecutive years. It’s a good place to start.
If you google Dividend Aristocrats, there is a listing of 67 S&P 500 companies that increased their dividends over the last 25 consecutive years. It’s a good place to start.
Ok, while the Banking stuff kinda gives me the chills, I think this could be a good buying opportunity for some guaranteed income in preferred stocks so went looking today with some with a good history of principal maintenance and long term 6% or higher yields. FifthTHird (FITBI) and Regions (RF-C) jumped out at me. But then I found some funds that spread some risk and ended up picking a Spyder PRefered Fund (KRE). pretty good stability over time and actually, like most things, near 10 year lows right now.
Barron’s has touted Fifth Third and Regions as good banking investments. I have taken the opportunity in this banking downturn to up my position in Regions. I know several executives at Regions and have confidence in their judgement and banking skills.
GAINESVILLE, Fla. – In a drama-filled series, No. 4 Kentucky outlasted Florida 7-5 in 10 innings to claim the hotly-contested series and inch closer...
Posted By Darrell KSR (1 Comments)
Yesterday, 10:07 PM
Of course, we start with the Kentucky (18-6) – Florida (10-14) series. But we also want to watch Tennessee (17-7) at Vanderbilt (11-13), Mississippi...
Posted By Darrell KSR (7 Comments)
05-09-2024, 03:41 PM
Bookmarks