How to Retire on Dividends: Earn a Safe 8%, Leave Your Principal Intact

How to Retire on Dividends: Earn a Safe 8%, Leave Your Principal Intact

Posted by jack_miller | Published a year ago

With 96 ratings

By: Brett Owens and Tom Jacobs

Purchased At: $14.95

"Read and learn from this book or become a Walmart greeter. Your choice."--Richard Fields, Retirement Expert. Wall Street warns you to withdraw only 4% a year when retired. But Main Street retirees have an advantage. You can obtain 6%, 7% and even 8% annual dividend yields--triple or even quadruple the S&P 500's yield--without reducing principal or taking on unnecessary risk. Skip Wall Street's low-yielding, blue-chip, "dividend aristocrat" BS and learn how from Brett and Tom!
Book reads like his subscriber Contrarian Income report, published monthly. Jury still out on whether the highly leveraged CEF and bond funds will tank with market correction. Should have been more discussion on risk, including beta, and other risk metrics. Brett's track record not bad, but I wouldn't put all retirement savings into the "8% plan". There is something to be said for ETFs and dividend aristocrats that have stood the test of time; albeit at a lower % return. Do agree with 50/50 stock/bond recommendation. As a subscriber I do recommend his report; just don't follow blindly.

- cain_flores

This book is nothing more than a pitch to sell their subscription service. Any investor with a financial search engine could write this book, insert a bunch of graphs and look intelligent. There is no information in this book that will help you get 8% returns, NOTHING! The writer will insert a bunch of graphs that state something like this: If you would have invested in AMAZON when it went public you would be rich, with a graph showing what you would have today. This book is not even worth the paper it was printed on!

- quinton_mitchell

I’m a registered financial adviser and think that this book is an incredibly practical guide to some frequently overlooked corners of the market, containing compelling strategies that individual investors, or boutique adviser shops, can use to provide higher income than is generally acknowledged, with minimal principal risk, through the use of actively managed closed end funds (CEFs) and income-producing stocks. I appreciated how the book lays out an approach to disciplined purchasing based on buying CEFs at a discount to NAV and harvesting gains when those NAVs become inflated and a lower-cost option is available. I also really enjoyed the points made on why these strategies are not employed by the large nations firms (hint: it’s because most of these CEFs are relatively small and cannot be leveraged by the large firms without adversely impacting NAV prices). The book also does a good job discussing why actively managed REIT and bond-funds still yield alpha over their indexed brethren.

There’s a couple additions that would make the book stronger:

1) The examples in the book are so specific and timely that they are frequently outdated. If you want to take action on what’s in the book, you’ll spend significant time researching each space to locate good options. It would therefore be helpful to have a high-quality filtered map of the space that individuals could dig through to see what is most compellingly priced in each area.
2) More thoughts on suggested asset allocations for the portfolios that generate the returns implied by the title. The book touches on this subject, suggesting 15-20 positions, 50% stocks and 50% bond CEFs, but I’d like to go a level deeper than that.

All in all, if you want to explore portfolios that generate much higher cash returns than conventional dividend-paying strategies and ETFs, this is a must read. It will open your eyes to opportunities that can greatly expand your playbook for when you need to transition to living off the proceeds of your investments.

Full disclosure: I was provided with a free review copy of the book and have invested some of my personal funds with Tom Jacobs, whom I have been an acquaintance of, for years.

- moshe_hall

I have been a fan of Brett Owens for some time now and after reading hundreds of articles written by him for his Contrarian Outlook and I decided to join his Contrarian Income Report newsletter. I started investing in several of the Closed- end Funds he recommends and for the past year I have been pleased with the dividends and how the stocks are doing in general. He has recommended that we sell a few of the stocks for various reasons and I have followed what he has recommended. In one case the stock price was headed down and we got out before that happened. In another recommendation he said sell and take the profit. I did and made $800.00. When I ran across this book he and Tom Jacobs have written I wanted it. It explains a great deal about the market and how stocks react to good news and bad. It explains how to retire on dividends and leave your principal intact and I am all about that. I retired in 2006 and I have multiple investments. I started with laddered CD's and as they matured the interest rates had dropped to levels I could not accept so I bought a mutual fund which has paid me every month since 2013 but the value of the mutual fund has gone down almost as much as I have been paid. To sell it today I would still be money ahead but I would not get all my principal back so I am holding it and collecting the monthly dividend. I also bought several Annuities one has matured and I bought another one with a different company. I also have a bond fund that provides monthly income. I was invested in the stock market also and just doing fair. I was making money but it was taking for ever using drip plans for several of the better known companies. As interest rates were going down I needed a way to make more income by making my money work harder for me and I found Brett Owens. He has pointed the way to Closed-end Funds and following his advice I am making more money following his Contrarian Income Report advice than I was on my own. I highly recommend you get this book and if you like his advice join his Contrarian Income Report and he recommends certain stocks and tells you what price to pay and if he sees something going wrong he will recommend you sell NOW. On the recommendation he made to sell now I did loose 2% of my investment but for the others I have been averaging a little better that 8%. If you are not like me and have to have the hard copy you can get this book online cheaper and read it then decide if you to want to join his Contrarian Income Report newsletter. He will give you monthly updates and if he sees bad news you will be the first to know it and get out while you still have 98% of your capital intact. I give his book 5 stars. Of the 19 stocks he is currently recommending I own 10 of them. All of them are making me money.

- moses_howard

I have been following Brett's dividend driven financial advice for the past few years through his subscription newsletter so I decided to give this a read. This book was a great primer, with a lot of specific insights interspersed, outlining his sound advice. The great thing about the methods and strategies he and Tom outline is that they are sound for any market - eliminate as much risk as possible without shooting yourself in your foot. No complaints at all about investing $10 and a few hours into this read. Well worth it. Thanks for the sane and manageable advice.

- susan_morales

I've subscribed to Brett's Contrarian service since 2016. Ordered my copy as soon as I heard about his book, great refresher on all the dividends us retirees love. Congrats!!

- isla_williams

' How to Retire on Dividends '



ペーパーバック版があれば良かった。小さな iPhone (kindle) だと洋書は読みにくいのと、途中で読書を中断して、次に再開して読む時に、微妙にページ数がズレてしまうことがある。

内容的には、通常の SP 500 インデックス投資だと、(配当) 利回りが 2.8% にしかならないが、それを元本に手をつけずに 8% で回すには、どうしたら良いのか?という手法の開陳である。

日本でも、こういう書籍がドンドン出て来て欲しいが、「配当金生活」を達成した日本人が極めて少数であるのと、彼らは本の「印税」など当てにしていないので (米国人が米語で本を書いてベストセラーになるのと、日本人が日本語でベストセラーを出した時では、売れ行きが一桁違うから印税収入の格差が激しい)、あまり出版されないのだろう。この分野は、米国が日本より先行していると強く思う。

- craig_wood

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