How Much Money Do You Really Need to Retire With Dividend Stocks?

Many investors are being told that in order to retire, one needs to accumulate a minimum nest egg of $1,000,000. Some advisers do recommend that even one million dollars might not be enough to ensure a comfortable retirement, given higher life expectancies or variability of investment returns. This is discouraging many investors, who are starting to believe that they could be working forever. Instead of focusing on the amount of money one needs to accumulate however, I think that a much better way should be to focus on the income from your investments.After all, a million dollar investment in your home would most likely lead to thousands of dollars in annual property taxes, but no income. Thus, having even a million dollars invested in the wrong asset might not be enough to ensure a comfortable retirement. If that same investor purchased dividend stocks, which increase distributions regularly, he or she would be able to generate an inflation adjusted stream of income, which would be sustainable for extended periods of time.... Read more