Everyone has a different idea that resonates with them when it comes to planning our rat race exits. For me, I’m focusing on dumping money into dividend stocks (Kings and Aristocrats with a track record of paying/increasing payouts) for the next five-ten years as well as finding ways to generate passive income without having to actively work. I don’t mind hard work and plan to also experiment with ways to decrease my spending/increase income so that overall I can contribute the most money I reasonably can and get there within the next ten years (perhaps sooner?!)
I also don’t plan to every stop working 100% until close to the traditional I’m retirement age. The goal for me is to flip my schedule and spend most days living and some days working vs. the traditional most days working and some days living.
My plan is to build my own ETF of dividend stocks, made up of Dividend Kings and Aristocrats. My primary focus is on Altria (MO) for the time being until I get to $500 dividend income per month ($1500 per quarter, approximately 1600 shares, since the dividend payout is almost $1 per share/quarter).
I use Robinhood to buy these individual stocks since it is simple to do from my phone. My other IRAs are through Betterment (personal) and Fidelity (my employer-sponsored plan). I consider these other brokerage accounts to be my long-term 65+ retirement plan and the dividend stocks/passive income strategies to be the means for entering a phase where I can work as much/if I want.
I will include updates each month that include what I was able to contribute, progress, and how I did it.
**This is not financial advice, simply a summary of my own strategies to pursue a work optional life**
Update 10/27/22: 148.47 shares of MO @ $0.94 per share = $139.56 per quarter, $46.52 per month ~ 9.3% to $500 goal
Update 1/31/2023: 321.71 shares of MO @ $0.94 per share = $302.41 per quarter, $100.80 per month ~
20.1% to $500 goal
353.25 shares of MO @ $0.94 per share = $332.06 per quarter, $110.69 per month
9.82 shares of WBA @ $0.47 per share= $4.62 per quarter, $1.54 per month
Total per month: $112.23 per month ~ 22.4% to $500 goal
List of bills currently covered by dividends:
- Cell phones: $30/month (Mint Mobile – 2 paid off phones, 4 gb each– paid annually for best price)
- Internet: $70/month (AT&T 100)