Want to Retire on $500,000? 3 Stocks to Buy and Never Sell
These dividend stocks could help make retiring on $500,000 a real possibility.
Want to Retire on $500,000? 3 Stocks to Buy and Never Sell
Overview
Is it possible to retire on $500,000? Yes, but it won't be easy.
The median U.S. household income is $88,510, according to Motio Research. To make that much money with an initial investment of $500,000, you'd need an annual return of 17.7%. It's possible to reach that level, but quite difficult to pull off.
Details
We haven't included Social Security yet, though. The average Social Security benefit for a retired worker is around $2,179 per month, or $26,148 per year. With this benefit included, you'd need to achieve an annual return of roughly 12.5% on a $500,000 portfolio to make the median household income. However, if you're married and both spouses receive the average Social Security retirement benefit, the needed annual return falls to 7.2%.
Source
Originally published at www.fool.com.
