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What every 45-year-old needs to do ….
Starting at age 45, with a small monthly investment of $500, you can build a significant retirement income stream. By harnessing the power of dividend reinvestment (DRIP) and compound growth, assuming a consistent 10% dividend payment rate, your small monthly investment will snowball into a substantial source of passive income for your golden years.
Here’s the magic
- Monthly investment: $500
- Dividend payment rate: 10%
- Compounding frequency: Monthly
- Timeframe: 20 years
- Total invested: $120,000 (20 years x $500/month)
- Total dividends earned: $143,919.59 (assuming 10% dividend payment rate)
- Total portfolio value: $263,919.59
- Monthly retirement income (based on 10% dividend payment rate): $3,133.00
That’s right! By investing just $500 a month for 20 years, you can create a retirement income of $3,133 a month.
Remember, dividend investing is a long-term strategy. Be patient, stay disciplined, and let the power of compounding work for you. Secure your financial future and start building your retirement income stream today!
P.S. It is never too late to start!
