Co-produced with Treading Softly
Here at High Dividend Opportunities we could have named ourselves "Making Retirement Possible" but it just wasn't as catchy. It’s true though, we focus on immediate income investing that unlocks high returns and changes the mindset of investors. We take worried, panicked traders and mold them into relaxed, determined income investors. These investors know their retirement is secure and their future is financially stable, not because their portfolio is so massive they could buy their way out of life's issues, but because their income is so steady they don't have to worry about next month's income needs.
Compare your portfolio to electricity for a moment. Electric current is measured in amperes and voltage. Amperes, or amps, are the flow of electricity. The higher the amps, the greater the flow. Voltage is the pressure of that flow. Think of a waterfall, the higher the amps, the more water flowing over the fall. The higher the voltage, the taller that waterfall is. A small waterfall with tons of water cascading over it or a very tall waterfall with a single drop could hypothetically achieve the same effective damage to a human standing below it.
Watts are the measure of both voltage and amperage together (Watts = Amps x Volts). Watts doesn't care if voltage or amperage is higher. Twenty watts can be comprised of 2 amps and 10 volts, or 10 amps and 2 volts.
Why talk about electricity? Besides making almost everything operate - like the screen you're reading this on! It’s a great comparison to retirement portfolios. Watts - the income you need to survive in retirement is equal to your portfolio size - voltage - times your income stream - amperage.
The rule of thumb is a 4% withdrawal from your portfolio is "safe." This assumes the
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