Investment Plan

Below is an example plan to contribute $1,500 a month to a financial independence fund (starting with $6,000). Assuming this investment fund could receive a conservative capital appreciation of 5.0%, while yielding a 4.5% dividend (without taking dividend growth into account), by the time one turns 50 (29 years later), they would have a portfolio nearing $3 million, while receiving $124,000 in annual dividends without even touching the $3 million it would have grown.

All the math is detailed in this spreadsheet:

In the shorter-term, at 33 years old, this investor would generate $1,563 in monthly dividends.

At 35 years old, this investor would generate $2,030 in monthly dividends.

At 40 years old, this investor would generate $3,659 in monthly dividends.

And at 50 years old, this high-roller would have $10,371 in monthly dividends coming into their account.

Dividend investing is a snowballing process which starts off slowly and grows into something magnificent. Achieving these goals will test one’s patience and discipline, but the rewards are well worth it.

Leave a Reply

Your email address will not be published.