How To Retire At 64 With Only Half A Million

May 24, 2019 6:00 AM ETAAPL, AGNCN, HD, JNJ, KO, LOW, MA, MCD, MMM, MO, MSFT, NNN, O, PEP, PFF, PG, PM, SCHZ, SPG, T, V, VNQ, VZ, WMT, XOM869 Comments


  • Seeking Alpha provides help for retirees and other investors working through current issues in the stock market today.
  • I will be using hypothetical situations many readers may face.
  • Retirees can use dividend investing to create income.
  • Consider your personal situation. Is taking Social Security early the right choice for you?
  • Looking for more? I update all of my investing ideas and strategies to members of The REIT Forum. Start your free trial today »

Finding a peaceful way to afford retirement is one of the most pressing issues of the day. Many readers have turned to Seeking Alpha to handle challenges which face retirees today. Retirees need to understand:

  1. How to plan their cash flows
  2. How to build a steady portfolio
  3. What level of expectations are reasonable

It's distressing to hear from retirees who "NEED" a 14% annual rate of return. Even with heightened risk and volatility, 14% is very unlikely. Even if an investor achieved it, it wouldn't be in a steady pattern. That's the nature of high volatility.

Many investors want to spend part of their golden years on a cruise ship. That's entirely possible.

Today, we are using hypothetical situations many readers face.

It would be easy to plan retirement with $10 million. So instead, let's make it less: $568,848. The portfolio we will highlight would've cost $500,000 about 18 months ago, but share prices have risen along with dividend rates. We'll demonstrate how to boost the yield without raising the volatility. If investors want to run a similar plan on $500,000, they can simply scale down the size of positions or utilize a higher allocation to preferred shares.

Market environment

The current interest rates available on bonds are low, but they have increased substantially. Bonds are a difficult way to generate income without a huge portfolio. Perhaps you'd rather go with a portfolio of mostly equity?

The market was seeing all-time record highs earlier this year. The higher valuations make it a more dangerous time to go all in on equity.

Investing today requires caution. The investments I would choose are large companies with a strong track record. A retiree today can still invest in an income portfolio and expect solid dividend yields. Dividend champions are unlikely to cut their dividend - even in

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This article was written by

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Disclosure: I am/we are long AGNCN, MO, PM, SPG, WMT. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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