With $850,000 saved and a $500,000 income, we want to retire in the near future – should we shift to dividend stocks?

1 hour ago 4

Christy Bieber

Mon, December 8, 2025 astatine 8:59 AM CST 3 min read

Wooden letters and fiscal independency aboriginal status image

A Reddit idiosyncratic is reasoning astir investing a batch of wealth successful dividend stocks.
He wants to discontinue aboriginal and thinks that this whitethorn beryllium a much blimpish strategy.
Other posters warned that it’s wholly imaginable companies could chopped their dividend payments.
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A mates successful their mid-30s with a $500K combined yearly income is funny successful retiring successful astir 15 years. As the hubby said connected Reddit, the mates has $850K successful assets close now, and their extremity is to person $5.3 cardinal erstwhile the clip comes for retirement.

The hubby posted connected Reddit due to the fact that he's reasoning astir readying for a dividend-heavy portfolio, but helium wants to cognize the upsides and the downsides to assistance him determine if this strategy is close for him.

The archetypal poster (OP) explained successful his Reddit thread that helium work respective posts astir dividend stocks offering 2% to 6% yields. Although the poster knows that the marketplace should typically supply a 7% mean yearly instrumentality implicit the agelong haul, he's considering switching astir of his portfolio to dividend stocks successful the fewer years starring up to status and during his status due to the fact that helium thinks that whitethorn beryllium a much blimpish approach.

His extremity is to discontinue with $5.3 cardinal and travel the 4% regularisation for withdrawals, which helium said should let him to proceed his existent $142K successful yearly spending. He looked astatine a fig of dividend stocks connected a database helium recovered that person comparatively level growth, with banal prices declining successful immoderate cases, but he's attracted to the stocks anyhow due to the fact that they wage a dependable dividend each year.

He believes that an investing program focused connected these stocks volition supply him much stableness and would beryllium akin to investing successful CDs, but simply getting a higher instrumentality than CDs could offer.

An infographic titled 'Early Retirement Dilemma' displays 2 concern strategies: 'Dividend-Heavy Focus' (Strategy A) and 'Diversified Growth' (Strategy B, e.g., S&P 500 Index), outlining their features, risks, and imaginable paths to a $5.3 cardinal goal. It concludes with a proposal for diversification and nonrecreational guidance.

While determination are galore dividend stocks that person provided reliable income implicit the agelong term, a fig of Reddit users pointed retired that buying a banal that's paying a definite dividend is not needfully a risk-free strategy due to the fact that the institution could trim the magnitude it pays.

There's nary warrant that the dividend volition stay and nary existent crushed that banking connected companies to proceed to wage precocious dividends -- adjacent admist dilatory maturation -- is someway safer than investing successful an S&P 500 scale money erstwhile the S&P has consistently produced 10% mean yearly returns implicit the agelong haul.