How Can I Invest for $1,000 in Monthly Retirement Dividends?
Back in the day, financial planners would talk about the "three-legged stool" to fund retirement. The idea was to replace your working income with a roughly equal combination of Social Security, pension income, and distributions from personal savings. You can already see why retirees in the 21st century no longer sit on the three-legged stool -- because pensions have gone by the wayside. Given that Social Security only replaces about 40% of your working income, that puts the onus on you to turn your savings into two legs instead of one. Dividend income might be able to help.
Dividend income works for retirees because the cash flow can fund some or all of their retirement distributions. That reduces the reliance on liquidations, which lower future earnings power. Plus, dividend income is truly passive. There's no rent to collect or work to complete. The hardest part is choosing among the many dividend-paying options you have, which include dividend stocks, mutual funds, exchange-traded funds (ETFs), and Real Estate Investment Trusts (REITs). Here are three ways to filter down those options, along with a look at three funds that pay out monthly dividends.
Image source: Getty Images.
Source Fool.com
