Saturday, April 28, 9:23 am EST. I’m my own man, and my own thinker. I’ve been doing this since November of ’84, for 33 1/2 years now. I started out knowing nothing, and just never stopped reading, learning and growing. I don’t do anything now like what I started out doing then. No need to review all the years of history. Let’s just say, I grew, paid my ‘tuition’ and matured, just like I’ve heard so many others have done.
In the course of all those years, I began to pay less and less attention to others, and began to formulate my own ideas and opinions. I’m to the place now, that I really pay next to no attention to anyone else at all. I have my own “box of tools,” and I rely very heavily on them… more so than anything else that comes my way. All else is now taken with a grain of salt, but often not even taken… at all. I’ve become something of a maverick.
First, I’m totally out of the idea of even attempting to grow a nest egg, in competition with literally just about every other soul that invests or trades on Wall Street. They can have that entire realm all to themselves. I do not care. In my retirement, I’m not going to be even the least bit interested in spending down some ‘nest egg.’ In my retirement, I want INCOME; and an ever-growing stream of it at that!
I invest for retirement income. My wife and I have a retirement income goal. I have my Soc. Sec. and IRA, and she will have her pension and her IRA, as well as a couple of other retirement related things set-up through her employment over the years. When she retires, her income will be ‘altered,’ shall we say. It will be considerably less than what she brings home from work now. I’m already retired, and have been nearly 3 years already (and, how I am loving it, too!).
Our goal, in retirement, is to literally replace every bit of our take-home with dividend income that grows at a rate that at least meets real inflation, or better, of course, beats it.
Four things happen when you make income your investment goal, as we have. First, it’s so much easier to establish an investment goal. After considering your retirement income from all other sources; generate enough income from investments to close any existing gap, and meet that goal! Second, you would be shocked to learn how much less you will need to amass in your “nest egg” if you seek to invest for the income you will need. It’s not anywhere near the figure the ‘pros’ tell you that you will need to acquire by retirement age, as a nest-egg. But third, and best, by investing for income, and tracking it carefully, as I have advocated, you measure your progress toward your goal, and you can pretty much take total charge of your effort, and make your portfolio dividend income to only go up, quarter-over-quarter, and year-over-year. You’re in charge! You’re making this happen. You cannot make a nest-egg appreciate in size. The market is going to tell you everyday what it’s doing to you! No thanks. Finally, we won’t be spending our nest-egg down, but only taking out the portfolio dividend income. The principle remains to continue to produce income, and we get to leave the entire portfolio as a legacy to our 6 children and 6 grandchildren. Don’t be that fool trying to spend your last penny… on your last day here on earth.
If you’ve read for any time, you now that I revel in reporting my monthly brokerage statements, and telling of how our portfolio dividend income has been growing. The growth has been truly dramatic! As I currently measure it, it appears that we are now at 91.5% of the way to our goal.
The most exciting and fascinating aspect of all this has been that all this time I was aiming at an income goal totally based upon our total current take-home. But, beginning only 1 year ago, I began to very carefully commence to track our actual spending. We’ve always lived beneath our means. We have dispensed with all indebtedness, including the mortgage, and we have been sending to brokerage, anything in excess of our emergency fund limit in checking. Our current retirement plan for income already meets all that we currently spend! The amount we are seeking to generate from dividends will serve to put us right back into that situation we know now, where we will again be living beneath our means, and deriving more income than we are currently spending. It feels good, real good, to be where we are right now. Where are you at? We’re on a glide path to what appears to be a very soft and safe retirement landing!
O, if only young people would commence to do what I am doing now… O, if only I’d known and started doing this… in November of 1984!!!
Here’s to your successful investing!
Harold F Crowell