Retirement requires careful financial planning well in advance, but the real challenge is posed to those who would like to have retirement happen early in their life. Financial moves become very important if that is your goal. Fortunately, there are certain strategies that, if implemented correctly, can make this a reality. Consider investment in stocks and funds that pay dividends and ensure you understand tax implications both before and after retirement. You should avoid investing in companies paying high dividends, but without much growth.
Key Takeaways:
- An income stream from dividends is preferable to making early withdrawals from a retirement account.
- Look for dividends from stocks with high market caps and from real estate investment trusts.
- Qualified dividend tax rates are the same as long-term capital gains rates.
“Dividend investing has been a hit among retirees who are looking for an extra stream of income. Although dividends have typically been a staple for older investors, there’s an opportunity for early retirees to benefit from dividends, too.”
Read more: https://www.fool.com/investing/2021/11/14/retiring-early-heres-a-smart-investing-strategy-to/
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