Germack,
My wife and I are in our mid 20s. We have been inspired by your post and have followed the couch potato model ourselves. We have started about 3 years ago and since then, we've been socking away as much of our earnings as we can.
We have one question. We hope to one day tap into the dividends we earn through our non-registered accounts and live off of it. We were thinking that $1500/month of dividends would be a nice goal to have. We calculated that we would need approximately 1.2 million in our non-registered accounts in order to earn that much of dividends.
We calculated that number as follows:
($1500 * 12 months)/ 1.5% dividend rate = 1.2 million required
Does the above calculation make sense in order to achieve this goal? I came up with 1.5% by assuming that the money would be investing in broad equity etfs (CAD, US, INTL).
My wife and I are in our mid 20s. We have been inspired by your post and have followed the couch potato model ourselves. We have started about 3 years ago and since then, we've been socking away as much of our earnings as we can.
We have one question. We hope to one day tap into the dividends we earn through our non-registered accounts and live off of it. We were thinking that $1500/month of dividends would be a nice goal to have. We calculated that we would need approximately 1.2 million in our non-registered accounts in order to earn that much of dividends.
We calculated that number as follows:
($1500 * 12 months)/ 1.5% dividend rate = 1.2 million required
Does the above calculation make sense in order to achieve this goal? I came up with 1.5% by assuming that the money would be investing in broad equity etfs (CAD, US, INTL).