Part 1: Early Retirement with a $2,000,000 Dividend Growth Portfolio

by | Feb 12, 2024 | Fidelity IRA | 11 comments

Part 1: Early Retirement with a ,000,000 Dividend Growth Portfolio




When planning to retire early off of dividend investing, you should always be prepared for the unexpected. How much money you need invested in order to fully live off of your dividend growth portfolio will likely change over time. In this video, I share how my strategy to live off my dividend portfolio has evolved and why M1 Finance will now play an even larger role in my plans to retire early.

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Part 1
– How my investing strategy has evolved
– Why I am investing $2,000,000 in M1 Finance
– How I transferred my Vanguard account to M1 Finance

Part 2
– Portfolio deep dive
– Dividend tax optimization
– Future projected portfolio growth over time

I’m not a financial advisor and the content discussed today is merely my opinion and intended only for your entertainment. The content expressed in this video should not be considered as professional financial advice. Some of the links above are affiliate links and come at no cost to you.
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Retiring early is a goal that many people aspire to achieve. With the rising cost of living and increasing life expectancy, it can be daunting to think about being able to sustain a comfortable lifestyle without a steady paycheck. However, with careful planning and investment in a dividend growth portfolio, early retirement can become a reality for some.

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So, what exactly is a dividend growth portfolio? A dividend growth portfolio is a collection of stocks or funds that have a track record of paying consistent and increasing dividends over time. This type of portfolio is popular among investors seeking to build passive income streams and achieve financial independence.

For the purpose of this article, let’s assume that you have managed to accumulate a $2,000,000 dividend growth portfolio. This portfolio is made up of a diverse selection of stocks and funds that have a history of paying out dividends and increasing their payouts year after year. With a portfolio of this size, it is possible to generate a substantial amount of passive income, which could potentially support an early retirement.

So, how exactly would one go about retiring early off a $2,000,000 dividend growth portfolio? The first step is to carefully assess the individual stocks and funds within the portfolio. It is important to ensure that the companies or funds are financially stable and have a strong track record of dividend growth. Diversification is also key, as it helps to mitigate risk and protect against market downturns.

Once the portfolio is set up, the next step is to calculate the potential income that could be generated from the dividends. Typically, dividend yields range from 2-5% for individual stocks. Assuming an average yield of 3%, a $2,000,000 portfolio could potentially generate $60,000 in annual income from dividends alone. This amount could be further increased by reinvesting the dividends or making regular contributions to the portfolio.

In addition to the dividend income, the portfolio could also appreciate in value over time, providing a potential additional source of income if needed. This growth in value could be used to fund larger expenses or to provide a safety net for unexpected costs.

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In conclusion, retiring early off a $2,000,000 dividend growth portfolio is certainly within reach for some individuals. With careful planning, investment in stable and growing dividend-paying stocks, and a diversified portfolio, it is possible to generate a steady stream of passive income that could support an early retirement. In part 2 of this article, we will further explore the strategies and considerations for retiring early off a dividend growth portfolio.

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11 Comments

  1. @adamlewis4605

    This should just be called “How to switch to M1.”

  2. @baileyembry6057

    Great video. Have you shared what stocks/etfs you’re investing for your new son?

  3. @richardlannon

    Do you have a Canadian counter part that you like and would recommend?

  4. @waylonwages8399

    Congrats I just got started at 20

  5. @danlyons4602

    Dave Ramsey talks about having a company manually overwrite the loan. This is what most non w2 workers end up doing.

  6. @TortoiseCashFlow

    Can't you use dividend income to apply for a loan? Also, when you retire, you'll probably still do something right, line YouTube? So you can use that income as well.

    Borrowing money on your stocks is pretty risky, especially for big purchases like land and houses. If the market crashes, you could get margin called and have to sell your property and fast, so you probably will end up selling below market value.

  7. @revlisnaver8288

    Can't wait to see your holdings!

  8. @frankharris6136

    Move to Germany and get that citizenship sir…

  9. @Mr.tdiv14

    M1 finance borrow , does it offer fixed interest rate?

  10. @philipp-andreasschmidt7966

    I do like your videos but this seems like a total pitch video for M1 finance. Paid endorsement?

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