Living Off Dividends - $40,000 per year!!
ฝัง
- เผยแพร่เมื่อ 13 ก.ค. 2022
- Living off dividends and financial freedom from dividend investing is such a huge accomplishment. Here is the math to learn how you can live off of dividends and have passive income fund your early retirement. Best dividend stocks for passive income have great dividend yields!
#passiveincome #dividendstocks
*not financial advice - บันเทิง
This is why millionaires can make so much money because they play with big numbers
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@@NolanGouveiaSo is it better to invest 400k into dividend to retire in 15 years or the s&p500
Neither bro. Make a DIVERSE portfolio, never invest in ONLY 1 single thing. Thats the most stupid move ever.@@Gsxrsquid831
Well yes kinda like obvious money makes money
3% from 100 = $3
3% from 1.000.000=$30.000
If you are rich its easier to get even more rich
@@Gsxrsquid831Best to invest in the S&P while you have income coming from your job since you can expect a 9-11% annual return over the long term. When you're ready to retire and live off the dividends you can sell it off at a good time and invest it into safe higher yielding dividend stocks paying 4-6% annually.
The S&P is best for growing your money while high yield dividend stock share prices typically don't appreciate that much but the dividend gives you consistent income.
10 years of compound interest make a huge difference. To live off dividends forget about getting money out of the broker and instead reinvest all the dividends for at least 10 years so the machine can make its own gas 📈📈📈
Isn't that what growth companies do anyway? Reinvest the profits back into companies
it's not interest
My payouts go to the bank . How can I get it to go to buying power????
@@lawandabrown1595 you need to change the withdrawals settings at the broker
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Guys, please do your research about the reality of dividends before investing in it and believing it will make you rich. You need to grow a big capital first and there are many drawbacks to dividends, it's not free money at all since you already possess that money. Personnally I think it's not the best way to achieve your financial goals. Good luck!
Yup! You'd need $3M to make 40k a year off $1.89 dividends. A little misleading title, but the idea is there.
Age 26, already retired. Thanks to stocks and dividends.
Awesome!
What’s the secret to get to that point ?
save a shit ton lol@@Malitubee
@@blblawhoo4338Your money loses value in a savings account. When you are rich, your money works for you.
Love this man, well done!
Just to be honest, i'm still going to work my butt off and still invest into dividends regardless. The more money, the better lol.
As you should!
Same here. But my reasoning is I want to keep myself grounded. That and I wouldn't know what to do with myself if I didn't have a job.
I’ll give you a free hint tho! You can borrow 1M faster than you can work for it 😅
It definitely works. Has for decades. Once you have enough capital.
Or yield max like TSLY or nvdy put 60k and 150k into stocks like Schd or voo for more growth to balance out the erosion of TSLY /nvdy. You’ll get about 25-30k on it and 15-20k on the voo/Schd. The capital gain from voi/Schd should offset. Gotta have decent risk tolerance
I've come to realize that money is a tool. I’ve worked so hard over the years to realize that if you don’t make money work for you, you can’t experience true freedom. My retirement goals haven’t been met yet though
Chill, that's not True Freedom. Real freedom isn't tied in with money. I felt free when I was poor. You can say financially freedom, but actual Freedom isn't connected with money. Flow through this world freely and with confidence.
If your not happy with out it you won't be happy with it $$$$$$$
Also the higher the yield generally the more risky the asset. Should probably mention that..
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Oh cool I only need 2mil to start
That’s not true. 90k would get you 1200 a month in dividends
Or you just take your dividend goal and divide it by the yield. Much simpler. 40,000 / 0.0135 = $2,962,962.96
Yessir
For Rio, you actually need about $580,000 to receive $40k
But couldn't you just use the payout to plug it back into your stock?
I plan on buying 10 stock for 10 months then 50 stock for another 5 and then 100 stock and so on.
Once it's a big enough pay out I'll diversify
@@simonbelmont1986can u explain this a little better and are u actually doing this?
@@simonbelmont1986it works if you have a decent chunk to play with. The less money you have the less options you have. For some, like me, all i have is compound interest to get to a point where i can then play with dividends
I’m still going with growth appreciation and the S&P 500 over dividends. SCHD hasn’t kept pace.
The commercial for Rio Tinto
Rio tinto paid a special dividend so it’s not really that cheap to live off rio
True!
Last time I looked I belive it was at about 7 percent yield
They did indeed! Well informed! 4-6% is a really realistic high end of dividend earnings!
How safe is that yield though?
@@jordandurkin12375% annual or thereabouts
This is my goal so I can be a stay at home wife and mom. The economy has gotten so bad that both parents have to work to make ends meet. If I can make enough from dividends, I can stay home in the future when I have kids ❤
Easier way is 40,000 ÷ 0.0135=
What’s the 0.0135 comes from ?
@@annajared7535that’s the dividend yield
@@annajared7535that's the yield rate of 1.35% = 0.0135, dividing 40k by it shows the figure close to 3M that you have to possess in the first place in order to invest for a 40k dividend.
My goal is only 7k-10k in dividends. I want my dividends to cover my Roth. Then I can take that 7k I save and invest elsewhere.
Thanks for this bro
Doesn’t say how many stocks only the value! Would be nice to have a number to go for lol!
Exactly what brought me here! I want to live off dividends! ❤
Just take the growth rate into account. And the high yield traps.
Don't go for high yield but instead go for growth stocks that raise their dividend. This way that number of needed stocks will drop drastically.
Tax? Ya gotta pay tax on any income stream. You can minimise it, just not avoid it!
Without listening to the video I can already tell what the solution is. Have tons of money, put them in dividend stocks
That is a pretty solid solution
He hasn't talked about diversification
I've heard no more that 3% on any one vehicle
Better 1%
I'd say diversification doesn't make sense if you fully understand the companies you're buying. 1-3% is pretty extreme and the best route is to just buy the S&P if you want diversification with great results.
There is also the buy borrow die method which a lot of rich people use
I anticipate positive growth in the markets for 2024, and I'm considering investing $220k in stocks for my retirement plan due to recent rate cuts. Could you provide guidance on executing this investment safely? Additionally, are there any crucial tips or changes I should be mindful of in the current financial landscape?
Fantastic! That sounds wonderful. How can I get in touch with your financial supervisor?
thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
Ya know I been teaching myself ratios and reading up on every stock that I’m interested in. (I’m not a financial advisor so don’t take my words as fact) but holy crapola the potential for this year is nuts. Technology has gone through a gauntlet these past couple years with all the big stuff that’s happened and this year a lot of companies are introducing new stuff. AI cookies is one I’m interested in because of advances in advertising. Online shopping is another one. Other AI stuff like work robots, online chats, customer service bots, etc etc. The potential there is insane. The stocks are either fairly undervalued OR just BARELY overvalued. Just waiting to skyrocket when the company puts their new tech into motion. Also another thing ( not super excited, cuz my little bro is active duty in the military) but war stocks. Companies that support the war. Specifically new deals that the military is making. Like new service rifles for example. Unfortunately I don’t think we can invest in that one yet, and I imagine it makes sense. The government probably doesn’t want too many rando people owning their gun supplier. Also the gun supplier probably gets enough funding as is😅. But those stocks are something I’ve been keeping an eye on just because I’m watching the turn of tides very carefully. Nuclear power is another war stock to watch. This one you can invest in. So far mine is pretty healthy and the ratios look promising.
In 5 years… I have no idea what will happen. Presidential elections, wars expanding, the antics going on at the Fed Reserve… the risk is NOT low. If I had it my way I’d be stock piling land and remote real estate instead of having such large amounts in stock. But supply/demand and buy low/sell high loosely guides my decisions so no land rn. Part of me thinks that open boarders means more tax breaks for corporations because they can claim employee diversity. I think Biden probably could’ve “helped” his campaign funders in a better way… but it is what it is. If we do go to war though, we should have support for the war effort back at home. Kinda dark outlook on it, I apologize, and I hope I’m wrong, but it’s something to watch. I still agree with you that 2024 will be a WILD year for the market. The tensions are so high and it looks like the market can only go way up. Of course the opposite is possible as well. I wish you all the best of luck, and please do your own research and educate yourselves. Reading articles that say “this is the best stock to buy” typically turns out to be a bad idea once you run the numbers yourself. Money is a tool, and a hell of a lotta people use it for their own benefit. Not yours. Formulate your own opinions based off solid evidence that you find yourself. And make sure the data you use is as current as possible 😂 good luck to anyone who finds this comment
Investing can be a very impactful way to grow your money, especially when you consider the three main factors that play a role in how much wealth you build: rate of return, how much you invest each month and, of course, time.Big ups to everyone working effortlessly trying to earn a living while building wealth. I’m 50 and my wife 44 we are both retired with over $3 million in net worth and no debts. Currently living smart and frugal with our money. Saving and investing lifestyle made it possible for us this early even till now we earn monthly through passive income
I'm exploring different investment opportunities and would appreciate more insights on this matter
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I value your recommendations. It's challenging to locate a trustworthy person. I could really use your investment advisor after seeing how much money you've made through investing. If you don't mind revealing her information, that is.
Alright, you can easily find her information by doing a quick 🔍 search. Feel free to reach out to her directly with any questions you may have.
This is a shocker seeing Regina Louise Collaro is being mentioned here. I always had mixed feelings about hiring a lnvestment advisor. For the record, I started working with Regina in 2019, and she manages about 70% of my lnvestments, while I manage the other 30%. My philosophy is that I care more about my own money than anyone else, but she made me accept that they have wealth of information on current conditions and future trends
This is a gem!
🙌🙌 thanks
Bro literally uploaded a tutorial for calculating percentages, this is fifth grade maths at most...
I’m confused I would need to invest the $ amount of stock to get $40,000 a year?
The real number is how many shares you need since price always changes
You need to amount of shares. Dwoending on the share price on the day you buy itll vary
$3,000,000 to live on the poverty wage of $40,000. Sounds great!
If you have $3M why not invest instead in VOO, pay the 22% in income tax, but generate 10% each year in gains?
The result is your nestegg will gain 10% x 22% = 2.2% each year but you will live on $90,000 per year.
Which is better living on $90,000, or living off $40,000?
With VOO, your nestegg will keep up with inflation, with your dividend investing you run the risk of draining down your funds while living in poverty.
You need to rethink living off dividends or speak to a financial professional, not youtube videos.
The purpose of dividends is stable low risk returns, but putting it ALL there makes no sense, atleast diversify a little bit.
Wow I wish I could speak with u man
You are so out of touch if you think 40k is poverty
That's how I do, majority in VOO and I have recently started investing steadily into VYM (a 3.1% dividend fund) as my more conservative investment.
What is voo
@@jamiesucks7994 Ticker symbol for Vanguard S&P 500 Index Fund. Buying it splits your money into all S&P 500 companies.
Me too I DONT UNDERSTAND. SORRY IM NEW
My portfolio is over all yield is right at 4% it was higher but I bought into Amz, goog and Tesla for the spilts so it brought my yield down about 1.2 %
I like it!
Stock split is completely irrelevant. You bought into those companies for a pointless reason that has zero impact on the value of the stock
@@Kennan_Davis I understand splits are irrelevant, my point was my portfolio yield on dividend returns, I could of invested that money on O, Jepi or any other stock that pays a dividend, however my goal is to have 100 shares of these companies to do option trading.
@@f.w.1318 The number of shares you have is irrelevant just like stock splits. The only thing that matters is the amount of money you have invested, not number of shares. Just like dividends (as you mentioned), with regard to the yield, the only thing that matters is the amount of money you have invested.
Number of shares and stock splits means ZERO
Most straight forward money hack that works if you could just deposit that money once
The formula is right there !
(40000/yield percent) is your answer.
😅 what a weird way to calculate (the way you did)
Man living the dream, congrats!
Can I start investing as 9 year old but my mum has a account for me
Yes look up “custodial accounts”
At 9 Years old you should not make your Life about Money ..
Greattt info 👍👍👍
Thank you!
As someone who is interested in archieving financial independence , I found this video to be very informative and inspiring
Dont bother with dividend investing unless you have millions
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Im rolling dividens into more stock in my ira my trading account has no dividens nore do i fund it as mucu as the ira
Is it better to have a Roth IRA or an investment account?
I like ROTH first but definitely both
So if I had 1626000 to invest into dividends why not just use that money and buy real estate, let's say 10 four plex newly buit...50,000 down per fourplex...grossing conservatively 2000 per 4 plex per month cash flow...240,000 cash flow yearly...nowhere near the 1 million to get 40000 yearly....am I missing something? Please correct me if I'm wrong
What's Rio Tinto in red looks like it's the best by far?
What would SCHD be? Or VOO or QQQM?
Buy spce 🔥
Dont know about living off 40k put with a full time job on top of that you will be doing all right for sure
Did you minimise taxes?
Yeah He did Taxes are a thing and Growth will only take when you sell some. Dividend is every time. Both are good to have.
very convoluted way to calculate it. no need to work out the number of shares. just divide income required by the yield as a decimal. or more sensibly get the yield of a nicely diversified portfolio and use that rather than this 1 stock.
I’m lost so is 40k what need to be invested into the stock or is that just what you estimate to live off of for a year ????? I’m just tryna make it out the hood 😢
40k is what they want to live off per year.
To get that amount in dividend income they need $2.9m or American express.
Different stocks paying different dividend percentages will change this number.
In his example he needs to buy $291k of RioTinto to get $40k of income a year.
PSEC is 13% a yr.
wouldn’t it just be easier to keep you’re money in 10 HYSA’s at 5% which they are now? $2.5M brings you in $125,000k and you really have no risks since the FDIC insures $250k? that’s just me though.
read news stories about people getting their bank accounts drained by scammers. Wells Fargo, Chase, etc.
live off those dividends! financial freedom explained!
What if you can only afford $100 a month? :(
@@HackweiserIG you should invest that money into education, so you can get a higher salary and save more
@@HackweiserIGwe all got to start somewhere always better now than never
@@BergesCello sorry buddy I have 2 kids and a masters degree maybe you should do your research on somebody before talking shit.
I honestly don’t think I did it right mainly because the stock I’m interested in investing in is $30.08 at 5.64% (0.0564) and got $533.33.
I put expenses as $72,000 and divided it by 533.33 and got 135.001 multiplied by $30.08 and got $4,050.83 that I’d need.
Maybe I’m going crazy but seems very low. Any help would be amazing on where I did go wrong if I did go wrong.
I am confused if I invest $50000 and I take payments quarterly the first quarter would be $3000 if it was 6 percent . now are dividends only paying that 6 %for the entire year and dividing it up between the quarters or do I get 6% every quarter?every quarter would go up in price if I reinvested .if it paid 6% every quarter instead of the full year.
you need to be a millionaire to live off your divi's.....if i had millions i wouldnt need divi's
Rithm paid me $60 month for 2k invest . Debating on dropping 20 to 40k in it after the next real estate crash
Is that $60 from dividends? I’m Interested in Rithm debating on investing 2k now or wait a month or so for it to drop some @marlonsmith713
I just bought different reits … that way if one or two goes down it won’t hurt so bad
Lol so I have to invest 2 million to live poor??
To live for free
@@naq211 hey, gotta have a goal. I was making 70 thou after taxes truck driving, with little living expenses. The 2 million mark isnt impossible
If you only invest into american Express then yes, dont just watch a video and invest off of that there is a good amount of work needed to find good deals. Working 420 average annual dividend off of 5.8k and those dividends get reinvested giving me more dividends.
No yiu can buy stocks like Altria or EPD just for yield with little growth. Get 7-8% yield so 600k-700k should be enough or if you can tolerate risk go yield max 100k get about 40k back a year buy TSLY or nvdy
Why invest in stocks with 2.5% dividend yield instead of just investing into a guaranteed 4.5% APY High-Yield Savings account? Wouldn't you make more money using a savings account? Just wondering and asking for an answer. Thanks!
Great question. This year in late 2023, interest rates on high yield savings accounts are incredibly high so this makes total sense but normally even the “high yield savings accounts” have a yield of like 1%. The rate is very variable so in that case the dividend at 2.5% would be the best move
@@NolanGouveia Thanks! This makes sense. So saving accounts interest have been very high lately! Up double if you think about it!
Interest on that is taxed at normal income, where most stocks issue whats called qualified dividends at a greatly reduced tax rate....and then you still have the normal appreciation of the asset. High yield savings are GREAT for your emergency fund though
Benjamin Graham rolling in his grave at a theoretical portfolio like this potentially guiding real-world financial decisions
The rio Tinto dividend is incorrect it’s more like 5.5% annually
So lets say i wanna get 15000 annualy from example just SCHD that has 3.61% i would need about 38 988 Shares x stock price of the current price for schd right now is about 72$/share??
Just divide $15,000 by the dividend yield (0.0361) which will give you about $415,000 needed to be invested in schd
What are good dividend stocks
Check out my longer videos on some of my picks
Lowes, mc Donald’s , axp, If you want etf go voo, vti, dgro Schd
I retired and im only 11....beat that. Never worked a day in my life 😂
😳
How much would you have to pay in tax on that 40K?
It depends how much other income you make. If that’s your only income then $0! But if you make over $41,000 then it’ll be 15% tax
Or Roth IRA and it’ll be free when you’re retired
Actually you also have to pay taxes since it is an income so let’s say that taxes for state and federal is 40%. After that you would only make 16,000 annually😂
Long term capital gains tax is muuuuch less than normal tax
Great break down!!
Thank you for watching!
@@NolanGouveia So I have to invest 2.9 million to make 40k a year?
Need Half a million
Great info and goodness your beautiful 😻
And if you put all your money into one stock and it goes bank rupt, gg money gone.
Very true!
@@NolanGouveia Tell it to Naive people :)
Lmao. So the suggestion is to do the math and put all the money in 1 stock to get the return??? Great idea 😂😂😂
I’d highly recommend not putting all your money in one stock no.. just an overly simplified example to get across in a short 😀
So, even if you want to make a passively $60000 a year, you would still be required to have $750000. Three quarters of a million they don't make it easy
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yeyeeee
You typically lose on your investment with many dividend stocks - just buy a bank cd at 5.5% honestly
Just buy Altria MO. They pay 98 cents
Yes but bad fundamentals
Or 75000 dollars for your total investment in yoeldmax etfs. There’s some risk but at least you dont need 2 million. Your money will double every 21 months if they maintain the average payouts. This is the fastest way to do it right now as far as i can tell. But hey, do whatever you want right?
The tax on Divs..are big time though.
Qualified dividends have much lower taxes than income
Ok now explain how someone saves 3mil with a yearly salary of 60k before they bite the goddamn dust😂
What is annual income?
Annual=yearly
thanks so much for putting visuals with the math equations!
You’re welcome!
Doesn’t yield change though
Yes
Yeah I’ll just buy $3 mil in McDonald’s stock sounds good
Wait what 😂 am I missing something? Dividends are issued quarterly right? So don’t you take your annual expenses of $40,000 and divide that by 4 first? If you get $10,000 each quarter, that’s $40,000 a year 😂
Am I missing something here? You need like 5.2k shares to make 40k a year 😅 I think your students need a new teacher.
Most Teachers just Spew Nonsense. More Growth than dividend stocks!! >
You do know that dividends it's not extra income or money and lower the value of a stock
Tsly
I can't pay attention to what you say. You are too handsome. It's not my fault. 🤔
Thank you for the compliment 😀
40,000 ÷ 0.0135 is faster
Or just buy healthy stocks on big dips, dividends are for suckers. 1.65 million to get 40k ahahahahaha
That’s one way to look at it
More Like Rookies Or Beginners Who’s Still Trying To Understand How All This Stuff Works 😅
WTF
Is there a stock that i can invest in that pays quarterly with at least a 10% dividend yield?
Probably not consistently
So the company’s with a higher yield are better to buy?
They can be, yes, but high yield isn’t the only reason to invest in them. A lot of companies with super high yields don’t last because they can’t sustain paying out that much. Look up “dividend kings” or “dividend aristocrats” and start there
@@NolanGouveia that makes sense, and will do thanks. 🤙
@@Cheez-Itz_Christ I’m here for any other questions especially on my longer vids! Good luck!
@@NolanGouveia thanks, I’ll definitely be checking out your other videos later
@@Cheez-Itz_Christ and company’s can decide to stop paying dividends all together also. So I’d say to look into dividends etf.
schd and call it a day
If you have more than 1 mil you wipe your as with 40k a year.. buy stock in companies that invest in growth and innovation. Dividend investing is dumb
That’s a bold take
@@NolanGouveia Am I wrong?
@@momoneyinvesting for most of what you wrote, yes. I do agree that buying stock in companies that invest in growth and innovation is smart, but then again the best companies that do that also pay a dividend 😳💵
@@NolanGouveia even 2% dividend return is better than nothing, my point is that money could be better spent elsewhere. Look at google, amazon , tesla etc., those never paid a cent and grew massively. all have been relatively secure investments over the past 20 years, except maybe tesla but its still up massively compared to pre pandemic.
There are also growth stocks that pay dividends but they are few and likely don't expect to continue growing like they used to. You seem like an intelligent guy, but growth stocks have actually made people rich in a way that dividend stocks can only dream of
@@momoneyinvesting I see what you are saying but my rebuttal would be too complex for this text box. Basically though, yes, growth stocks have the potential to appreciate like crazy. They also have the potential to (and more often than not will) decrease in value or go bankrupt altogether. It’s a higher risk, hopefully high reward play and I like to have that as a portion of one’s portfolio. But solid value stocks that produce a consistent stream of cash flow and appreciation is a very smart way to invest for the long term.
What happens when such stock fall in price 😢
Short term, the dividend stays the same but long term if it keeps dropping in price, they’ll likely cut back the dividend
Very very basic
Dude seriously the only way to do this is to have a massive principle. Which 90%of people do not. So leave us alone and let us stay poor.
You can't live off investing. Only when you already have an sellable skill
So you will be making 2 million a year??
No you have to invest 2.9 mil just to get 40k/yr back
@@chosen1_jd aka be a multimillionaire to make the yearly salary of a minimum wage employee. dividend investing in a nutshell
40k is not enough. I need at least half a million a year to retire.
😳
lol half a million a year
LOL useless
Lol!
This video is worthless. He should have told them never to try to live off of 1 stock’s dividends.
Thanks for watching 🤣
I don't think anyone expects an investor to choose only one stock. What worries me are channels that teach younger investors that you can retire early, loading up on super high paying dividend stocks. They don't factor in the inflation will easily outpace dividend growth. Nor do they factor the dividend cuts many of those stocks suffer.
@@Duke_of_Prunes Cuts and Taxes will take care of Dividends Growth stays inside and only will tax when you sell.