Matching Retirement Income Sources to Goals & Thoughts on Dividend Investing

Income planning will make or break your retirement years - This is because your income throughout retirement will be what controls your lifestyle, not your net worth.

When doing your pre-retirement planning - hopefully several years before your desired retirement - you’ll want to match your lifestyle wants, needs, and goals with the income you are able to generate from your various financial assets.

However, depending on where and how you plan to generate income from, you may run into problems along the way. Many times, we see issues arise with those who primarily focus on a dividend spending strategy from their investment portfolios to supplement their other retirement income sources.

More specifically, I discuss:

• Defining retirement income planning
• The 2 major pitfalls you need top watch out for when creating your retirement plan
• Investment returns or income?
• Potential cons of a “probability-based” retirement plan
• Wade Pfau’s Four L’s of Retirement
• Matching your various retirement income sources with your goals
• Potential issues when relying on only one income source such as real estate or dividends
• The importance of dividends
• A pure dividend spending strategy isn’t a great retirement income strategy

Resources From The Episode:

• Retired-ish Newsletter Sign-Up
• Get Show Notes Here

Key moments:

(02:02) The Error of Relying Solely on 1 Retirement Income Source (02:57) Challenges of Basic Income Planning

(04:58) Retirement Income is More Important Than Investment Returns (08:33) The Four L’s of Retirement Planning (11:15) Funding Your Desired Lifestyle

(12:30) Rental Real Estate May Not Be The Most Efficient Retirement Income Plan (14:53) Planning for Legacy, or Not (16:04) The Importance of Liquidity in Retirement (18:06) The “Live Off Of Dividends” Strategy Debate (24:44) The Risks of High-Dividend Paying Stocks (29:52) Total Return Investing as an Alternative