💨 Abstract

Living off dividends in retirement can be appealing, but it's rarely realistic for most people. While it's possible to generate enough income to cover expenses, this requires a large portfolio and careful planning. Moreover, dividends aren't guaranteed and can be reduced during economic downturns. Experts advise that a diversified investment strategy, including dividends but not relying on them alone, is more practical. Early retirees face additional challenges, such as sequence of returns risk and inflation.

Courtesy: WTOP Staff