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How a 65-Year-Old Turned a $950,000 401(k) Rollover Into a $4,500 Monthly Paycheck Without Buying an Annuity
['Michael Williams']
24/7 Wall St.
Barbelling dividend-growth stocks like JNJ and KO with REITs and covered-call ETFs is the recommended path to hit the 5.7% blended yield target.
At this reader’s starting balance, the required blended yield is roughly 5.7%.
The Conservative Tier: 3% to 4% YieldTo hit $54,000 in income at a 3.5% blended yield, you need roughly $1,542,857 invested.
The Aggressive Tier: 8% to 14% YieldAt a 12% blended yield, $54,000 requires only $450,000 of capital.
Many 65-year-olds discover they need to cover $40,000 to $45,000, not $54,000, which drops the required yield below 5%.