The short answer is to provide a path to financial independence through investment ideas.
Unless you were born into wealth financial freedom isn’t something the majority of Americans will achieve. Our definition of being financially free is not having to worry about money when you choose to retire. Many people let decades pass and start planning for their retirement too late. Achieving financial freedom is a campaign of hard work, discipline, and dedication which can take decades to achieve.
Have you ever stopped and planned out your retirement? If not take a moment and envision where you would like to live, what you would like to do, and how you will achieve this without your paycheck coming in? When you retire the bills keep coming and everyone has their hand out. Think about what your monthly bills are today and what they could look like in the future.
At Dividend Income Streams we believe investing in dividend-producing stocks over the course of your career is one of the best ways to rebuild your income when the paychecks stop coming. We look at this as rebuilding because when you retire you can’t replace your paycheck. Planning for your future needs to become a financial campaign that doesn’t stop.
Fidelity is one of the top investment firms, managing employee benefit programs for over 22,000 businesses. There are 36.4 million brokerage accounts through Fidelity totaling $10.4 trillion in customer assets. According to Fidelities data the average 401k account for someone in the category of sixty-something 60 – 69 is $182,000. To some this may seem like a large number and to others it wouldn’t be nearly enough to live on. The debate about how much money you need to retire is one without a correct numerical answer as there are many variables that need to be considered. The only answer we believe in at Dividend Income Streams is as much as possible.
Hypothetically lets say your 65 and decide to retire with $182,000 in your 401k. The average social security check for retired workers was $1,474.77 per month. If you live until 85 your 401k would provide $9,100 annually which breaks down to $758.33 per month throughout retirement prior to any future appreciation from the investments. When social security is added to this number it increases to $2,233.10 per month without any cost-of-living increases. This would be the equivalent of a $26,797.24 salary. If your health holds out until 90 those numbers are reduced to $24,977.24 annually and $2,081.44 monthly.
This isn’t meant to scare anyone but it is meant to be an eye opener. Talking about money is a good thing and not enough people engage in these conversations. Saving for retirement is one of the most important financial conversations you can have. It’s important to understand your expenses, what your cost of living will be and how much money your projected to generate when you retire.
When it comes to retirement and achieving financial freedom there isn’t a one size fits all because everyone’s expenses are different. This is why our number isn’t a number, it’s a mindset to put away as much as possible.
All information provided by Dividend Income Streams is for entertainment, educational, and informational purposes only. Nothing presented by Dividend Income Streams constitutes as financial, investment, trading, tax or any other advice. You should not make any decisions based on the information provided by Dividend Income Streams without undertaking independent due diligence and consultation with a professional broker or financial advisory.