On average, an American retiree spends about $4,000 per month. But few of those retirees are getting $4,000 from their nest egg—which is partly why bankruptcy rates among retirees have been soaring for years.
But there is a way to get $4,000 a month (or $48,000 a year) from your savings—even if you aren’t filthy rich.
And that’s the problem with today’s low-yielding stock market. To get $48,000 per year from the S&P 500, you’d need $2.76 million to put in the market. That’s because the S&P 500’s dividend yield is a crummy 1.7%—far lower than US Treasuries and way below its long-term average!… Read more