How much do I need invested to live off my portfolio?

Divide your annual income need by your expected withdrawal rate. For $4,000/month ($48,000/year) at a 4% withdrawal rate, you need $1,200,000 invested. Lower withdrawal rates require larger portfolios but are more sustainable long-term.

Can I live off dividends alone?

Yes, if your portfolio generates enough dividend income. At a 3% average yield, you'd need about $1,600,000 to produce $48,000/year in dividends. The advantage is you never sell shares, preserving your principal. The trade-off is needing a larger portfolio.

How do taxes affect retirement income?

Taxes can significantly reduce your take-home income. Qualified dividends and long-term capital gains are taxed at favorable rates (0-20%), while traditional IRA/401k withdrawals are taxed as ordinary income. Tax-efficient withdrawal sequencing can save thousands annually.

Retirement Income

Income Target Calculator

Reverse-engineer your retirement portfolio based on desired cash flow. Model the difference between traditional capital drawdown and yield-only strategies.

Target Planner

Define your lifestyle need

Desired Monthly (Net)

Account for TaxesGross up principal for IRS drag

Est. Average Tax Rate

Strategy Benchmarks

Capital Drawdown4%

$1,764,706

4% SWR Rule

Yield Protected4.5%

$1,568,627

Income Only (4.5%)

High Yield7%

$1,008,403

Yield Aggressive (7%)

Principal Requirements Analysis

Essential Tier

$3,500/mo

Target: $1,098,039 Principal

Lifestyle Tier

$5,000/mo

Target: $1,568,627 Principal

Luxury Tier

$7,500/mo

Target: $2,352,941 Principal

Strategic Recommendation

A "Lifestyle Coverage" goal of $5,000 requires a robust portfolio. We recommend targeting a principal of $1,568,627 to allow for a sustainable 4.5% yield shield that preserves your capital indefinitely.

Design Portfolio

Income Target Calculator

Target Planner

Strategy Benchmarks

Principal Requirements Analysis

Essential Tier

Lifestyle Tier

Luxury Tier

Strategic Recommendation

Continue Your Journey

Financial Independence Calculator

Portfolio Income Estimator

Retirement Withdrawal Calculator