The Magic of High-Yield Index Fund Reinvestment
ebook ∣ Financial Freedom, #164 · Financial Freedom
By Joshua King
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Index funds are a great introduction to stock market investing. In fact, many people invest only in index funds until retirement.
But then there is a dilemma; they must sell shares to generate income. But what if they converted their index fund dividends into high-yield products?
The idea is to keep your principal and growth inside the index funds while taking the dividends to create supplemental income.
Wouldn't it be nice to retire with $1 million in index funds and $50,000/year in dividends?
This scenario may be possible with your high-yield reinvestment and a little additional cash flow. It's worth some time to consider the opportunities. Good Luck!