"Building a relatively defensive dividend portfolio that yields $10,000 per month doesn't have to be difficult. But those seeking such a colossal monthly income stream are going to need a massive amount of capital. And overreaching for yield (let's say beyond the 4% rule) isn't advisable, especially for those investors who seek less anxiety, rather than more worry about volatility and the potential for dividend cuts."
"In any case, aiming to minimize costs (management fees) while finding the perfect mix of investments (stocks and ETFs) is a great first start for a self-guided dividend investor looking to live off monthly income without having to ever hit that sell button. Let's check in on a few ways one can score a jumbo income stream while steering clear of the alluring traps that may catch others unexpectedly as they pursue higher yields without realizing the added risks they'll need to shoulder."
"A $10,000 per month income stream is hefty, but it is possible for those with enough in the bank First up, let's get a ballpark estimate of how much you'll need in the retirement account before even thinking about achieving a $10,000 per month ($120,000 per year) passive income stream. Undoubtedly, the "4% rule" is just a rule of thumb. But I do think it's far better not to deviate too much from the trail,"
Achieving $10,000 per month in dividend income requires a very large retirement nest egg when following conservative yield guidelines. Sticking near the 4% rule limits the chance of dividend cuts and reduces portfolio volatility for anxiety-averse investors. Even lower yield targets, such as 3% or 2%, can further reduce stress for newer investors. Minimizing management fees and balancing stocks and ETFs helps preserve returns. Chasing higher yields increases the risk of distribution reductions and greater volatility. A careful, cost-aware allocation focused on durable cash flows supports a sustainable monthly income stream.
Read at 24/7 Wall St.
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