Investment scale required to replace salary with dividends and Social Security outlook
SCHD Schwab US Dividend Equity ETF
$35.17 -0.71%
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- 1The amount of ETF investment required to generate $62,000 in annual dividend income is nearly $2 million.
- 2Using an average annual net return of approximately 10% from the SPDR S&P 500 ETF Trust or Vanguard S&P 500 ETF, one must invest $1,500 every month for 25 years.
- 3The Social Security Board of Trustees expects benefit amounts to decrease by 22% by 2032.
So what's the key point?
Investing $1,500 every month for 25 years can result in $62,000 in annual dividend income. Preparation is needed as Social Security benefits are expected to decrease by 22% by 2032.
Source The Motley Fool +1 · View original ↗
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