Market corrections are scary. And who knows if this market correction will turn into a market crash with all the uncertainties in the global economies … Brexit, trade tensions, global growth slowdown, etc.
A Quick Overview on Global Economies
The European countries’ economies look like it could be falling apart with the unemployment rates in France, Italy, and Spain sitting at about 9%, 15%, and 10%, respectively.
Gross domestic product (“GDP”) is a monetary measure of the market value of all the final goods and services produced in a period of time.
Here’s a comparison of the 2017 GDP of the 3 countries:
Germany and the U.K. are doing OK with recent unemployment rates of +3% and +4%.
Note that the combined 2017 GDPs of Germany, the U.K., France, Italy, and Spain was about 10.8 trillion, which was about 56% of the U.S.’s GDP. Still, if Europe’s economy falters, there’s going to be a ripple effect. Read More
This article is for investors who are retirees or close to retirement.
Ultimately, most retirees want safe income – cash they can use every day to pay the bills and enjoy life. So, the goal of a retirement stock portfolio is to generate enough income for those uses.
How much income do you need to earn from your dividend portfolio?
You will earn income from your dividend portfolio and other sources. To figure out how much income you need to earn from your dividend portfolio, you first need to know how much income you’ll be earning from other sources such as pensions or perhaps a part-time job.
Dividend Income = Desired Income for Retirement – Income from Other Sources
For example, if you desire $50,000 of retirement income and you earn $10,000 from other sources, then, you’ll need to earn $40,000 of dividend income.