Quick Read – A $1.2M portfolio blending covered-call funds, REITs, BDCs, and dividend blue chips at 7.2% generates $7,200 monthly, which is double the average couple’s Social Security income. – At 2.5% inflation over 30 years, a fixed $7,200 monthly check loses nearly half its…
rchasing power, making dividend growth critical for long retirements. – A 4% dividend-growth portfolio that grows its payouts by 7 to 8 percent annually can overtake a static 7.2% yield portfolio in income by year 12, while also preserving more capital. – Are you ahead, or behind on retirement? SmartAsset’s free tool can match you with a financial advisor in minutes to help you answer that today
Each advisor has been carefully vetted, and must act in your best interests. Don’t waste another minute; learn more here. A $1.2 million portfolio generating $7,200 per month produces $86,400 in annual income, equivalent to a blended yield of 7.2%.
According to the Social Security Administration’s 2026 COLA fact sheet, the average aged couple receiving Social Security benefits collects about $3,208 per month, or $38,496 per year. That means a portfolio generating $7,200 per month would provide more than twice the income of the average retired couple’s Social Security checks combined. Reaching that level of cash flow is one challenge.