What are you waiting for? How many years must you spend in the workforce before you realize it’s all a game?
Even worse, it’s a game you cannot win. Even if you work 40 years to accumulate $1 million, can you live on $40,000 annually from investments?
Most people will get nowhere close to $1 million in investments (paper assets), so what’s their plan? Social security? It’s time to get off of the fence. It’s time to consider dividend investing.
What’s at stake? What does your life look like without dividend investing? What is at stake if you continue to work without investing your cash?
Saving & Investing with $400/month Available
How many people do you know who have successfully and happily retired? How did they achieve their retirement goals? I’d wager most of them have some type of pension plan.
But what if you don’t have access to a pension? What if your social security will only be $2,000/month (if SS even exists)? How do you close the gap between income and expenses?
- Dividend Investing in Your 20s
- Dividend Investing in Your 30s
- Dividend Investing in Your 40s
- Dividend Investing in Your 50s
- Dividend Investing in Your 60s
- Dividend Investing in Your 70s
Your livelihood is at stake. Too many people have no retirement plan at all. The few that do rely on their 401K, Roth IRA, or TSP to save them.
The 401K lie is based on you accumulating as much money as possible and then spending your life dismantling your account.
You cannot even use your money throughout your lifetime. You’ll wait until age 59 ½ to grab your money and pray it lasts until the end. But, I have a better plan—dividend investing.
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Why I became a dividend investor. I recently talked to a Marine Corps buddy of mine. We both have nice military pensions; he works and I don’t.
I made a bold prediction with an accompanying shocking wager. I bet him I would make more dividend income than his state pension from teaching high school. He didn’t even want to bet me.
I have another Marine Corps buddy who serves in law enforcement. He told me in 14 years, he would retire from law enforcement with a $3,800/month pension.
I thought to myself, “I would have more than that in dividend income next year.” The magic of dividends is that I control my own destiny.
My wife and I currently earn $2,400/month in dividends. I plan to make $3,000/month by the end of 2025. I became a dividend investor to control my financial destiny completely.
The magic of dividend investing. You don’t need to be a hardcore dividend investor like me. You can stop the process once you hit $500/month or any number you choose.
My goal is to make $10,000/month in dividends by the time I reach 50 years old; I am currently 44. This is a lofty goal, but one I am entirely committed to.
Why do I have such a demanding goal? Dividends represent a sense of freedom like no other. Not only did I create this income, but I can pass it along to my family.
Don’t get me wrong; my military pension is very nice. However, I don’t want to depend on anything from anyone. I want to be financially free from all government interests.
Are You a Spender or a Saver?
Once I reach $10,000/month in dividends, then I’ll pay down my three real estate investments. I’ll have no debt and large sums of passive income from multiple sources (dividends, pensions, royalties, real estate).
Having $10,000/month in dividends will allow me to travel on a whim. I can attend any events I want.
The best part is that I can be a generous contributor to my kids and grandkids. I can ensure they have all the necessary resources to lead successful lives.
Comparing dividend investing to normal retirement plans. How does dividend investing stack up against normal retirement plans, or lack thereof?
Dividend investing gives you a massive amount of tools at your disposal. Let’s say taxes are your biggest concern.
You can invest in stocks that pay qualified dividends, like Altira (MO) and Verizon (VZ). If you make less than $96,000 as a couple, you pay 0% on qualified dividends. If you make more, you’ll pay $15% (up to $600,000 AGI roughly).
Can You Work Two Jobs at Once?
You can choose closed-end funds, like Nuveen AMT Municipal Fund (NVG), that do not pay federal tax. Since I live in Florida, I also don’t pay state tax. There are funds directly for states like California and New York that are Federal and State tax-exempt.
The best part of dividend investing is starting early in life. In fact, my 18-year-old son already has $10,000 in his dividend portfolio.
The major difference between dividends and social security is that dividend investing leverages the magic of compound interest.
People on social security pray every year for the government to increase their checks by 2-3%. It’ll take years to get to a decent amount. However, as their paycheck slowly grows, inflation moves much faster, eroding their gains.
The ReBirth of the Renaissance Person
Dividend investing will quickly outpace inflation in three ways: new capital, dividend reinvestment, and dividend raises.
New capital. Every time you get an influx of cash, perhaps from a tax return, insert it into your dividend portfolio. I just received a $5,400 tax return that I invested in AGNC at 12%. Keep doing this and your gains will greatly outpace inflation.
Dividend reinvestment. As long as you reinvent 25% of your dividends, you’ll continue to outpace inflation in a speculator fashion.
Dividend raises. The companies you invest in, like Johnson & Johnson (JNJ), Visa (V), and Mastercard (MA), will raise their dividend annually. This adds another layer of protection to your portfolio.
Dividend investing is a trust issue. Who do you trust more, you or the government? Who do you trust more, Costco (COST) or the government?
Bond Investing in Your 30s
Corporations exist to assist consumers and reward shareholders. By becoming a shareholder, you join in on the corporation’s gains; you become a team.
You depend on the federal government to keep its promises when using social security. As much as they will try, it’s tough when costs keep rising.
Nothing is worse than watching someone try to survive only on social security. I see it almost every day. It’s not pretty. We can do better.
Conclusion. If you are reading this, you have considered dividend investing. So, what’s holding you back? How do you get yourself off of the fence?
The 4% Rule vs. Dividends
I’m watching so many of my buddies with large military pensions struggling to continue working. They are overspending and underthinking.
They are living glamorous lives funded by working jobs. However, this lifestyle completely crumbles when they stop working.
My life is much simpler; however, I become richer every day. I receive dividends that I reinvest to get even more dividends.
When we turn 60, I will have more money than them, plus I didn’t work for those extra 20 years. How did I do it? Dividends—Now More Than Ever. Good Luck!
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Disclosure: I am not a financial advisor or money manager, and any knowledge is given as guidance and not direct actionable investment advice. I am an Amazon Affiliate. Please research any investment vehicles that are being considered. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article. All Right Reserved Military Family Investing
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