As from April 2013 my Journey in Investing is to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

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"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

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Wednesday, 16 October 2019

Can Dividend Investing Support AVERAGE Retirees Over Decades Of Inflation In Their Retirement Lifetime? (2)

Read? Can Dividend Investing Support AVERAGE Retirees Over Decades Of Inflation In Their Retirement Lifetime?

For every $10K of annual household expenses; FIRE or retire will need to accumulate this level of capital to invest @ 5% yield and also re-invest the surplus balance of dividends @ 5%; and assuming 2.5% yearly inflation.

20 years - $274K

30 years - $301K

40 years - $320K


  1. If one only has average income, the objective should always be to FI, and not RE. But FI does provide flexibility to take an "easier job" and eases (not removes) worries of future retirement adequacy. Early Retirement for average income workers is only possible provided that they are happy to endure extreme frugality their whole life. Which in my opinion is not worth it.

    1. Join FI folks and not necessary FIRE. We love options and free to choose our options.

  2. I think the other important success factor is to have a portfolio of dividend stocks that have DPS grow.

    DPS grow at 2~3% grow is sustainable. It acts as a hedge against inflation.

    With the DPS growth, very likely that the share price will increase overtime, and resulting to capital gain (unrealised).

  3. i like to compare the last 5 years average dividend yield when i am buying.

  4. Also on paper it is "swee" "swee" predictable year to year.

    We all know that market is never like this one.

  5. What happen to capital at the end? You assumed it is left as legacy or donated to government

    1. Better strategy or model is dividend investing with later years of asset draw-down to X as legacy or donation


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