With longer life expectancies, rising costs and unpredictable markets, this reliable income stream helps supplement Social Security, reduce sequence-of-returns risk and create essential financial breathing room, according to Chris Tipton, a CFP with Balefire Wealth Management.
“One couple we worked with in their early 60s had two rental properties, a diversified dividend stock portfolio, and a small book of digital courses they created in retirement,” Tipton said. “Between the rental income and dividends, they covered 60% of their living expenses, meaning they only had to draw modestly from retirement accounts. This gave them freedom to travel, withstand market volatility, and even delay Social Security for greater long-term benefits.”
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