An Easy Nest Egg “Tweak” for Safe 24.8% Gains

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By Brett Owens

Last week, I showed you aA smart monthly income strategy that hands you $3,333 a month on a $500k investmentaEUR" all in dividends alone.

This easy monthly dividend setup works out to an average 8% yield (or $40,000 a year on our $500k) paid out to you every 30 days like clockwork.

I think youaEURtmll agree this is plenty of cash for many people to clock out on. So today weaEURtmre going to talk growth.

Because our $3,333-a-month aEURoe8% strategyaEUR already crushes Wall StreetaEURtms flawed 4% rule. You know the one: it recommends that you draw down 4% of your nest egg a year by selling stocks to supplement your dividend income.

Problem is, every so often you run up against a chart like thisaEUR"using Dividend Aristocrat Target Corp. ( TGT ) as an example:

The 4% Rule Meets Reality

ThereaEURtms nothing wrong with the dividend, but a market meltdown forces you to withdraw money at exactly the wrong time aEUR

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Options
Referenced Symbols: TGT , BA , MMM

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