Retire Early with ASX Dividends

It’s the Australian dream to finish work early and enjoy financial freedom after a strenuous-working career. Although the numbers really are not complex many struggle with the idea of financial independence being achievable. With that in mind, here are a few simple steps to retire early and live off your ASX dividend income.

Step 1. How much do I need to retire early?

Working out how much money you will need is the first step you need to take before you can seriously contemplate quitting the day job for the freedom of early retirement. The number will change depending on your desired lifestyle, travel plans and day to day expenses. A general rule of thumb is to estimate your retirement expenses as two-thirds of your current salary, but this will vary for everyone. 

Step 2. Organise your portfolio before you retire early

Once you’ve worked out your spending needs, you should ensure that your ASX portfolio is well-organised well before leaving your job. For example, if you know you will need $50,000 per year to spend, you need to make sure that your ASX dividends are yielding that amount. A $1 million ASX dividend portfolio divided between BHP Group Ltd (ASX: BHP), National Australia Bank Ltd (ASX: NAB) and Qantas Airways Ltd (ASX: QAN) would yield $52,500 per year at present.

Step 3. Give yourself a safety net

While your portfolio should cover your expenses, it’s a good idea to play it safe and be conservative once you retire early. A cash buffer with 2–3 years of spending or some freelance work can be great insurance if circumstances change.

The reality is that with the right portfolio, you can retire early with a strong ASX dividend income to support your lifestyle

Keep up to date

get updates on properties, news and more across Melbourne

More To Explore

Insider Tips

Melbourne Homeowners Renting Out Car Parks to Pay Their Mortgage

If you’ve ever wished you had more access to car parking spaces around your home, then you’ll know how valuable an area to park your car in can be. Currently, it seems as though people in Melbourne are beginning to take advantage of that value, by renting their car parking spaces out to help pay


Airbnb Owners Be Warned as Tax Office Enforces a Massive Crackdown

The Australian Taxation Office (ATO) has put Australian Airbnb hosts on notice, warning the popular platform was now part of a wider tax evasion crackdown. Airbnb is is an online marketplace for arranging or offering lodging, primarily homestays, or tourism experiences. The company does not own any of the real estate listings, nor does it


NAB Offers Fixed Home Loan Rates Under 3%

3 out of 4 of Australia’s largest banks are now offering fixed home loan rates of under 3%. That means huge things for the future of Australia, provided that customers are actually looking to lock themselves into a new home.  The National Australia Bank cut some of its fixed interest rates on home loan contacts

Looking for a property?

Search across Melbourne with Buy Melbourne Apartments

Copyright Buy Melbourne Apartments 2019

Built with by Idea Engine

Sign in to see your favourite properties

Save your favourite properties and access them anytime. Your shortlisted properties will appear on this page.