Comments on: How Much Money Will You Need For Retirement?

By: Carnival of Personal Finance #224 – National Dog Week | My Life ROI, Getting the Best Return On Life

Mon, 28 Sep 2009 09:45:14 +0000

[...] D4L from Dividends Value presents How Much Money Will You Need For Retirement? [...]

By: Dividend Tree Potpourri – September 27, 2009 | Dividend Tree

Dividend Tree Potpourri – September 27, 2009 | Dividend Tree — Mon, 28 Sep 2009 00:05:14 +0000

[...] How much money will you need for retirement [...]

By: Dividends4Life

Dividends4Life — Thu, 24 Sep 2009 12:13:52 +0000

Todd: I couldn’t agree more with taking a cash approach – in all that we do, including analysis. As an accountant, I know what kind of junk is buried in a P&L, the cash flow statement is much cleaner in determining the true value of a company. When I retire, I plan on spending cash, so I am planning on the cash flows necessary to meet the needs.

Best Wishes,
D4L

By: Todd R. Tresidder

Todd R. Tresidder — Wed, 23 Sep 2009 14:15:10 +0000

I agree – dividend income stocks is one of my favorite retirement income strategies. They have two big advantages – you spend perpetual income during retirement that adjusts over time with inflation while the asset grows over time to offset inflation as well. These are both very important aspects.

One must be careful, however, to include risk management into the portfolio strategy as this recent downturn and dividend cuts have illustrated.

Something not stated explicitly, but implied in this post, is a principle I teach in a book I published on the subject of shifting retirement planning from an asset based approach to a cash flow approach. Focusing on cash flow has many advantages including eliminating the necessity of making all the arcane assumptions required by most retirement calculators – how long you will live, expected inflation, expected return on investment, etc..

These assumptions are impossible to know with any degree of certainty and are made unnecessary when the focus of retirement planning is cash flow.

Pointing your readers in the direction of dividend paying stocks is one large step in a positive direction.

By: TMT

TMT — Wed, 23 Sep 2009 03:39:54 +0000

Income paying stocks do make sense.

One thing that I see in my practice is most retirees spend 100% to 125% of their income when they first retire.

They take a long vacation, buy a new car or payoff their house.

70% of income is way too low of an estimate.