"The scary thing about retirement is giving up the steady paycheck that sustained you throughout your working years. But once you reach a certain age, it's natural to want to enjoy your time, as opposed to punching a clock. At the same time, it's important to have access to steady, reliable income so you can cover your expenses without worry."
"Most retirees have access to a fairly reliable source of income - Social Security. Social Security benefits are earned by working for a certain number of years and paying taxes on those wages. But Social Security isn't enough for most people to retire on. The average monthly benefit today is only a bit more than $2,000 a month. And while Social Security may do the job of covering your basic expenses if they're on the low side,"
Many retirees rely on Social Security, but the average monthly benefit of a bit more than $2,000 is insufficient for most to fully fund retirement and discretionary spending. To achieve steady, reliable income beyond Social Security, investing in dividend-paying stocks can supplement benefits. A successful dividend-income strategy requires a fairly large portfolio and a focus on companies with steady, reliable dividends that have increased payouts over many years. Dividend Aristocrats, firms that have increased dividends for 25 consecutive years, exemplify the type of companies to consider. Building a portfolio concentrated in dependable dividend growers improves the chance of covering retirement expenses.
Read at 24/7 Wall St.
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