How Much Do I Need to Retire?
The 4% rule says you need 25x your annual expenses to retire safely. But what if your dividends cover your expenses without selling a single share? Compare both approaches below.
Your Numbers
Your annual spending in today's dollars
Social Security, pension, side income
Traditional safe withdrawal rate (4% is standard)
For the dividend-only approach
You need this much saved, then withdraw 4% per year. Your principal slowly depletes.
You need this much in dividend stocks yielding 4%. Your principal stays intact — you never sell a share.
With a 4% dividend yield, your dividends cover your expenses without selling shares. Your portfolio stays intact and continues growing. That's the dividend advantage.
Portfolio Needed by Withdrawal Rate
Lower withdrawal rates require more savings but dramatically reduce the risk of running out of money.
Portfolio Needed by Dividend Yield
A higher dividend yield means you need less capital to cover the same expenses — but higher yields often come with higher risk.
Monthly savings estimates are simplified (no compounding). Actual required savings are lower with investment growth. This is for illustration only — not financial advice.
This tool is for educational and informational purposes only and does not constitute investment, financial, tax, or legal advice. Consult a licensed professional before making investment decisions.
Past performance does not guarantee future results. All projections are hypothetical estimates based on user-provided inputs and may differ materially from actual outcomes.
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