💰 Dividend Income Calculator: Retirement ETF Strategy

Start by calculating how much money you'll need to live on in retirement. As Jeff Teeples puts it, the best solution is to calculate how much money you'll need in retirement and then add 25% to it to account for taxes and unforeseen expenses.

Your goal is to hit this adjusted number in Year 1. A typical nest egg of $750,000 might only generate $20,000 a year in pure dividend growth, which falls short if you need $50,000 to live.

High yield ETFs like JEPQ or JEPI produce massive income today, but their dividend growth is often near zero. This helps you pay the bills early in retirement, but it won't keep up with inflation over time.

As Jeff Teeples explains, if your portfolio value is a little bit low you'll need the Jep Q's of the world or your favorite High yielding assets to get by especially in the early years.

Dividend growth ETFs like SCHD or DGRO have lower starting yields but grow their payouts by 8% to 12% per year. You need to produce money now to live, but you also need to beat inflation in the future, so build a balanced portfolio and win.

As Jeff Teeples notes, you always hear you want to go high yield in retirement, but you want the lowest yield possible to get by because over time those assets will generally outpace inflation.