Encore – Retirement Income & Thoughts on Dividend Investing
My firm, Planable Wealth, is currently very busy in the midst of our Spring Strategy Meetings with clients where we help people just like you create and retool their financial and tax plans for 2026 and beyond. That said I wanted to bring you an encore episode this week, which I think, is one of the core episodes we’ve done so far.
Back in episode 70, I discussed the importance of retirement income and the realities of your cash flow in retirement. I also share my thoughts on dividend investing especially when trying to utilize dividends as an income stream in retirement.
Income planning will make or break your retirement years - This is because your income in retirement will be what controls your lifestyle, not your net worth.
When doing your pre-retirement planning - hopefully several years before your desired retirement - you’ll want to match your lifestyle wants, needs, and goals with the income you are able to generate from your various financial assets and resources – but, depending on where you generate income from, you may run into certain hurdles along the way.
In this episode we break down the important pillars of retirement income planning, matching your income sources to your retirement goals, and why a dividend income strategy may not be the best choice.
Thanks for being a loyal listener and we'll be back with new episodes soon.
More specifically, I discuss:
- Defining retirement income planning
- The 2 major pitfalls you need top watch out for when creating your retirement plan
- Investment returns or income?
- Potential cons of a “probability-based” retirement plan
- Wade Pfau’s Four L’s of Retirement
- Matching your various retirement income sources with your goals
- Potential issues when relying on only one income source such as real estate or dividends
- The importance of dividends
- A pure dividend spending strategy isn’t a great retirement income strategy
Resources From The Episode:
The Key Moments In This Episode Are:
(02:43) The Error of Relying Solely on 1 Retirement Income Source
(03:39) Challenges of Basic Income Planning
(06:03) Retirement Income is More Important Than Investment Returns
(09:15) The Four L’s of Retirement Planning
(11:57) Funding Your Desired Lifestyle
(13:09) Rental Real Estate May Not Be The Most Efficient Retirement Income Plan
(15:35) Planning for Legacy, or Not
(16:46) The Importance of Liquidity in Retirement
(18:42) The “Live Off Of Dividends” Strategy Debate
(25:25) The Risks of High-Dividend Paying Stocks
(30:36) Total Return Investing as an Alternative
Cameron Valadez is a registered representative with, and securities and advisory services are oferred through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC.
Neither LPL Financial nor its registered representatives offer tax or legal advice. Always consult a qualified tax advisor for information as to how taxes may affect your particular situation.
The opinions voiced in this podcast are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a decision.
All performance referenced is historical and is no guarantee of future results.
All indices are unmanaged and may not be invested into directly.
All investing involves risk including loss of principal. No strategy assures success or protects against loss.
Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise. Bonds are subject to availability, change in price, call features and credit risk.
Dividend payments are not guaranteed and may be reduced or eliminated at any time by the company.
Fixed and Variable annuities are suitable for long-term investing, such as retirement investing. Gains from tax-deferred investments are taxable as ordinary income upon withdrawal. Guarantees are based on the claims paying ability of the issuing company. Withdrawals made prior to age 59 ½ are subject to a 10% IRS penalty tax and surrender charges may apply. Variable annuities are subject to market risk and may lose value.
This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.
Tax and accounting related services offered through Plan-It Business Services DBA Planable Wealth. Plan-It Business Services is a separate legal entity and not affiliated with LPL Financial. LPL Financial does not offer tax advice or tax and accounting related services.
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