This is the Lowest Amount Needed to Live off Dividends! (How Much to Live off Dividends)

In this video, we discuss how much money you have to invest to be able to live off dividend income. Let me know what your thoughts are in the comments down below!

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[mathewrandolph]

In the DRIP scenario you're not allowed to withdraw money. You'd have to sacrifice some of that continuous compounding at some point if you wanted to live off dividends. After you reached that breakpoint you'd re-invest enough to keep you above. I would be interested to see that point at which you can begin to withdraw those dividends without losing purchasing power.

[jas-vebg]

Look a thousand a month would be ideal to contribute, but most of us that are just starting are probably looking at between 100 to 500 a month to start

[bryanpilger]

You should never expect to live purely off of dividends. If you ever get to that point, then you are probably pretty rich either way and will live comfortably regardless. Your goal should be to invest so that your dividend income will complement any other sources of income that you are generating.

[JoseFlores-xhcj]

My yearly goal is to work less hours than the previous year. Age 18 I was working 66hrs a week, by age 28 I was working 56hrs a week, by age 32 I was working 45hrs a week. In 2024 my goal is to just work 40hrs a week, thanks to dividends I'm able to spend less time at my job and more at home.

[blaytn]

If I could afford a $1, 000 monthly contribution to investments then I wouldn’t even need to click on a financial advice video lmao

[moudhaffarsaidi]

If I'm getting my dividends in USD then 700$ to 1000$ are more than enough. I guess you can retire much earlier if you decide to live elswhere, say mexico, Brazil or SEA

[rafaelg.]

My strategy is much more casual: I contribute as much as I can, as wisely as I can of course reinvesting for now. The day I feel like retiring or am forced to I will suit myself to the funds I have available.
But no doubt dividend growth and compounding are key elements to optimal results.
Thanks for the videos!!

[JL-hotc]

You need about $800k to live off dividends comfortably.
$800k invested into good monthly dividend paying ETF's will pay you upwards of $70k a year. give or take a few thousand. Before taxes.
So if you don't try to live like a multi millionaire, and just wanna leave comfy, then $800k = $70k in yearly dividends is sufficient.

[aze]

However;
1. Most people has a skewed view on how much they need each month. They think their current wage is the lowest they need to survive, and then some. But it's really way, way less. And if you start downsize your expenses you both can save up faster, and have a lower goal to reach.

2. You don't start with "high" dividend shares. The dividend isn't really that high. You start with higher growth stocks, whether they give out a dividend or not. That way your money will grow faster, and when it gets close to start cashing out you can switch to dividend stocks.

[Spawn]

These videos tend to be god level optimistic. They never take into account losses

[yasaipicles]

Jesus 7.5k monthly cost of living... my guy needs to cut out those luxury car payments

[DayZeroGaming]

60, 000 is the minimum amount required to get working wage dividends. High % ETF that goes slightly up in price as well every year would be multiplicative enough to grow expenentially each year. Let that 60k sit in these funds for 5 years and you will have a lot of money, close to 320, 000, accounting for inflation and for market changes over year

[christophermyers]

An extra $400 or $500 a month (after taxes) to supplement income would be more than enough for me to happy right now.

[Zerotragedy]

I like the spreadsheet. Something to consider is you have a set amount of 2% inflation which is vastly understated. Generally people have assumed 3% is the typical inflation number however that would also be inaccurate. In reality, we have hit between 8-15% for the last 5 years and show no signs of slowing down.

You may also want to mention in your video to utilize a Roth Ira so you do not have to pay taxes in earned dividends which would better pump your portfolio value over time.

[joeaitken]

Food for thought, your cost of living will most likely increase over time not strictly by just inflation. Assuming you want to have a family i.e kids, house, etc that will dramatically increase the cost of living as you get older. Now I understand that not as easy to track then an average inflation value over time but something to be aware of.

[imbrega]

Good video but isn't 9% way too much for the dividend growth projection? Since the calculation is considering really long periods of time, 20+ years, arenìt dividend growth stocks unable to hold that high grow rate for that long? Since they are bound to slow down, and I think the core of this calculation is all relative to the compounding effect of the dividend growth, 9% feels way too high. But yeah prove me wrong or try to explain it, maybe I'm missing something!

[tbakken]

Things this lacks:
- When you start to live off the dividend, you will no longer add DRIP or monthly contributions, this will result in cost of living catching up at some point, depending on the market..

[xeflatio]

This is what you do:
-Deposit 20K in your broker account
- search for German car manufacturing companies stocks they offer 8% 9% dividen
- use leverage to buy 150K in stocks and receive 12K in dividends yearly
-move to any country that allows you to live with 1000 dollars a month

[jordankendall]

It appears to me that you should simply try to earn a market return of say 10% or possibly 12% in your dividend growth example, then switch to a higher starting yield in retirement. Either way, you want a good return no matter the strategy. Therefore whatever strategy employed, you still have to follow the principles of starting early and being consistent with investing regularly. I believe there may be a slight flaw in your analysis because when I tried to replicate your model, if the price growth is higher than the dividend growth, there are some interesting results. Essentially when price growth exceeds dividend growth, it is like buying an increasingly more expensive asset that still has the same cash flows. In your example of using a starting yield of 7.5%, if you drop the price growth to zero, then you would have sufficient dividends to cover your monthly expenses before the 30 years ends. Just saying. Might want to reevaluate your analysis.

[Red.]

You need 2million invested at 4% dividend payouts a year, that’s 80k a year, if you manage to spend less then that a year then your income and portfolio will consistently grow each year and you’ll be able to have more dividends each year if you reinvest whatever dividends you reinvest.