How to Retire on Dividends: Earn a Safe 8%, Leave Your Principal Intact

by Brett Owens, Tom Jacobs

"Read and learn from this book or become a Walmart greeter. Your choice."--Richard Fields, Retirement Expert. Wall Street warns you to withdraw only 4% a year when retired. But Main Street retirees have an advantage. You can obtain 6%, 7% and even 8% annual dividend yields--triple or even quadruple the S&P 500's yield--without reducing principal or taking on unnecessary risk. Skip Wall Street's low-yielding, blue-chip, "dividend aristocrat" BS and learn how from Brett and Tom!

Genres: Finance

192 pages, Kindle Edition

Published August 8, 2019

Reviews

[Eric Franklin · Rating 4 out of 5]

This book is an incredibly practical guide to some frequently overlooked corners of the market, containing compelling strategies that individual investors, or boutique adviser shops, can use to provide higher income than is generally acknowledged, with minimal principal risk, through the use of actively managed closed end funds (CEFs) and income-producing stocks. I appreciatd how the book lays out an approach to disciplined purchasing based on buying CEFs at a discount to NAV and harvesting gains when those NAVs become inflated and a lower-cost options are available. I also enjoyed the points made on why these strategies are not employed by large firms (hint: it’s because most of these CEFs are relatively small and cannot be leveraged by the large firms without adversely impacting NAV prices). The book also does a good job discussing why actively managed REIT and bond-funds still yield alpha over their indexed brethren.

There’s a couple additions that would make the book stronger:

1) The examples in the book are so specific and timely that they are already generally outdated. If you want to take action on what’s in the book, you’ll spend significant time researching each space to locate good options. It would therefore be helpful to have a high-quality filtered map of the space that individuals could dig through to see what is most compellingly priced in each area.

2) More thoughts on suggested asset allocations for the portfolios that generate the returns implied by the title. The book touches on this subject, suggesting 15-20 positions, 50% stocks and 50% bond CEFs, but I’d like to go a level deeper than that.

All in all, if you want to explore portfolios that generate much higher cash returns than conventional dividend-paying strategies and ETFs, this is a must read. It will open your eyes to opportunities that can greatly expand your playbook for when you need to transition to living off the proceeds of your investments.

Full disclosure: I was provided with a free review copy of the book and have invested some of my personal funds with Tom Jacobs, whom I have been an acquaintance of, for years.

[Matthew · Rating 2 out of 5]

I found this to be a very repetitive book. The premise and investment tips could easily fit in a few pages, not pushing 200. Unfortunately most of the graphs within the hardback edition I read were functionally useless too as the legend representing each position was not legible.

The superior attitude of the authors had about their investing strategy compared to the more conventional one quickly grew tiresome. I suppose that is to be expected when the author's service is called "The Contrarian Outlook". His smugness would be easier to accept had more of his lauded investments survived three years after publication. Like Owens' articles in Forbes, this book felt like an advertisement for his financial newsletter. He admits to cannibalizing portions of this book from his newspapers, which would disappoint me if I were a subscriber and purchased a book full of information I already bought.

Another criticism I have for this book is that the authors do not inform the reader on how to find information on some of the criteria they mention. For instance, the authors advise investing in CEFs that have managers with inside share ownership. How would the average investor find out whether the managers themselves held a stake in the fund?

That being said, I liked the authors' criteria tips for investing in bond CEFs, warnings about BDCs/mortgage REITs, and justification for active managers.

[Amy · Rating 3 out of 5]

So I’m just trying to learn more about financial investing. This book was slightly out of my reach lol. However, I did learn some things and I have a few tips to look into.

[Ken LaVoie · Rating 5 out of 5]

I cannot attest to the accuracy and long term results of the investment theme this man writes about, but I can tell you this: All my investing life, since I was 22 (54 now), the question on my mind has been, "Why wouldn't someone just assemble a broadly diversified portfolio that yielded all the income he needed (vs. doing the usual SWR 4% on a portoflio yielding, for example, 2.0 or 3.2%). I've always wanted to do it but keep reading it's better to have the typical 60 / 40 split. I've also been fascinated with CEFs for 15 - 20 years and wondered why everyone didn't buy those. (Imaging a friend assembling a portfolio of stocks with a million dollars of their own money then selling 10 shares to all his friends, including you, for 90,000 each ...this is a discounted CEF in a nutshell...)

As I've read this book, I just started sliding more and more into what I subconsciously believe is true (that is, moving into REITs, CEFs, etc.)

This book is written well, too. No "bad writing" ... no references to "Pogo" ... very readable even for a seasoned investor. There's some "newbie stuff" you'll have to skim over, no doubt, but it's EASY to skim over, and easy to get to the meat.

[M.L. Ruscsak · Rating 5 out of 5]

There are two ways to read this book. One is I know nothing about stocks, or dividends so I as a reader am seeking knowledge. Which, as a primer this does fairly well. But with all primers you need further education in the subject to fully appreciate this book. Too which there are many just by finding the authors.

However, if you are one of the few people who understand stocks well enough to already work with the stock market, you will have a different take or outlook. This book would then be a tool to better navigate what you are already doing with your stocks.

This is a tool that if used properly will better serve your bank account.

[Matthew C · Rating 3 out of 5]

Interesting Concepts

The strategy and examples are very interesting, but it would seem like a lot more work than most people are prepared to put in. I don’t doubt the success of the authors, but it kind of comes back as a bit of a sales pitch for them being the ones to help you out vs. do it yourself.

I also don’t like when authors make themselves seem like the smartest people in the room and denigrate institutions or themes like “Wall Street” as a bunch of dummies and we are so much smarter. Those kind of inferences are through-out the book, I guess some people go for that, but it’s a turn off for me.

I have to think about this some more and may deploy some of the work through a micro portfolio to test the waters, but at this point who has the time to do the proper research. Might be something I do in retirement vs. leading up to retirement. I did like their advice on being very conservative as you approach retirement.

Smart, successful guys, just not sure how actionable it is for the masses without subscribing or becoming a client.

[Bill Phillips · Rating 5 out of 5]

ONLY book you will ever need for investing AND taxes...ESPECIALLY FOR 72+! Covers stocks, bonds, Closed End Funds, REITS, Covered Calls and a brokerage. Brief and to the point. So is my review.

[Marianne Wade · Rating 5 out of 5]

Solid book. Solid strategy

I have read the book twice now and have implemented several of the ideas with good results. I have signed up for the newsletter and have benefited from the additional information. Happy to recommend this book.

[Raymond Owensby · Rating 4 out of 5]

Great Read

Good book. I learned alot and will look into other books on this subject for even more education. Simple and to the point.

[Henry · Rating 5 out of 5]

Good read!

I really enjoyed this book and I can't wait to put this information to good use. I will continue to use this book for reference.

[jeffrey lee martin · Rating 5 out of 5]

Nice Read..

I would Recommend this to anyone that is New to Investing or is a Veteran at it. Easy to read and Understand.

[Stephanie Bain · Rating 5 out of 5]

Retire on dividend income alone-and keep your capital fully intact.

Read caption below to learn more! ⬇️⬇️⬇️⬇️

Anyone can learn from this book! You don’t have to be an economist to understand!

This book is literally for anyone who wants to retire and utilize dividends to make you more comfortable. Brett Owens and Tom Jacobs break down and explain impactful and proven strategies to help you retire with ease! This is a must have!

You can be any age and learn from this! I know we all are beginning to worry about what are we going to when we retire, how can we live off if it, how much will we receive each month? I know I do! You can purchase on Amazon through my storefront! Let me know what you think if you purchase!

All-in-all Brett and Tom discuss six "perfect retirement plays" that'll pay you up to 8% dividends, such as:
Recession-proof real estate via REITs
Commercial landlord stocks with timeless tenants
Safe, high-paying bonds
Secure "boring" bonds with tax breaks
Infrastructure-powered dividends, and Rate-proof bond funds
Bank 8% income without worrying about interest rates, the Fed, or the economy at large. Learn how to retire on dividends alone and keep your capital 100% intact.
About the Authors

Brett Owens is the Chief Investment Strategist for Contrarian Outlook, a publishing service dedicated to safe, meaningful dividends. Brett's flagship newsletter, the Contrarian Income Report, has generated 10.6% annualized gains since inception. His subscribers have enjoyed most of these gains as cash dividends.

Tom Jacobs employs the strategy in this book as a partner with Huckleberry Capital Management, a boutique investment advisory serving clients in 25 states and three foreign countries. He is the author and editor of numerous investment books.

[Ryan · Rating 5 out of 5]

This book will teach you some incredible ways to secure your finances and pull exceptional dividend profits for the years to come. The more you can make your money work for you, the more free time you have to do what you love. This book teaches you how to turn your money into your own employee. Great strategies and insider knowledge like this is hard to come by. It is difficult to sift through all of the nonsense out there and get to the true gems, that can support your financial growth. This book is a culmination of those gems and is worth your time, if you are looking to increase your wealth.

[Arturo Sierra · Rating 3 out of 5]

How to Retire on Dividends" by Brett Owens and Tom Jacobs is a pretty interesting book. It explains why aiming for dividends of up to 8% is important for a comfy retirement. The authors lay out some solid strategies for building a portfolio focused on high-yield dividends.

And while the book has a lot of valuable info, it might not be the best fit if you’re just starting out with investing. It gets a bit complex and might feel overwhelming for beginners.

All in all, it’s a great resource for those who already have some investment know-how and want to boost their retirement income with dividends. But if you’re a newbie, you might want to look for something a bit simpler to start with.

[Anthony Gaenzle · Rating 5 out of 5]

Owens and Jacobs really understand the market and offer a ton of great advice and they help the reader look at investing from a different, better perspective. I've just really recently started investing, and I've been looking for advice that goes outside the basics you hear everywhere. This book has it, and I'm actively looking to apply some of the direction the authors set forth. Highly recommend this book!

[John Rickgarn · Rating 5 out of 5]

Great read with lots of investment nuggets

I have done Covered Calls and even Cash Secured Puts in my Roth IRA for years but I picked up some new techniques and tickers to research. While some are outdated like NRZ, the strategies are still the same. May everyone have a great retirement income stream! #ToYourWealthAndFreedom

[Liz · Rating 5 out of 5]

I loved this book. It was an informative read for anybody who wants to retire eventually! I'm several years off from retirement, but I still found this book worthwhile and educational. The authors used humor throughout the book, so it didn't feel like I was reading a textbook. This is a relatable subject for everybody! It's never too soon (or too late!) to plan for your future.

[Jason W. · Rating 3 out of 5]

Overall good intel on closed end fund, municipal bond, REITs and dividend paying stocks as investments. Authors highlighted some of the most successful managers in this space and feel as though, unlike stocks where indexing is likely the best route, theses mallets are more opaque and the right manager is critical to driving the best performance.

[Peter · Rating 3 out of 5]

A bit of an extended commercial

Well written and convincing regarding the case for closed end fund and REITs. But the criteria he describes to choose a cef or reit are so time consuming and complex that I am just going to subscribe to his newsletter for the recommendation as to what to buy.

[Jeffing · Rating 2 out of 5]

I was hoping to learn some cool investing strategies and approaches but feel like it was more of a really long motley fool article. I took away some tidbits from the very beginning and the end, but yeah, the middle content just went in one ear and out the other. maybe if I had the book or ebook so I could actively look up all the ETFs and whatnot mentioned then it'd be more useful, but... idk.

[Nikhil Garg · Rating 5 out of 5]

I started reading the book and have read a good portion of it and this really opens my mind with so many ways to grow my money. The book is really well written and I am certain that it will help you invest the money in a better way.

[Eon Watson · Rating 5 out of 5]

sensible investing

I have learned a lot about investing in dividend stocks and convertible bonds in this book. Now, I have to restructure my portfolio with reits and dividend paying stocks. Thanks, Mr. Owen’s and Mr. Jacob.

[Suzanne Gilson · Rating 5 out of 5]

Sound advice

This book is jammed packed with great ideas. Really appreciate all the information shared by the authors. I'm heading back to page 1 and taking better notes.🙂 also heading to the Contraian outlook for the newsletter. Thank you!

[Jack Heimbigner · Rating 3 out of 5]

Great Idea. Hard to read book.

I picked this book up and put it down a lot. I liked the idea a lot, but the writing was a bit heavy that I couldn’t read it in long stints. Overall, I learned some great things.

[Jamella Gross · Rating 5 out of 5]

I absolutely recommend this book to anyone who's interested in retirement or even looking to just make money in general. I feel like it's always good to set up your future self ahead of time. The information is very useful and the graphs are a very nice visual addition to it.

[Arron · Rating 5 out of 5]

another good strategy to beat inflation

Thanks for sharing your knowledge on close end fund. I never come across any strategy like this book. It really open my mind the possibility. It definitely worth the time to read. I really enjoy every piece of the information

[Julie · Rating 1 out of 5]

I found this book to be entirely outdated since it was written in 2018 and reads as a sales ad for the authors. I was hoping to at least pickup some ideas but too many examples are delisted or have completely tanked. I'll read newer books instead.

[David A. · Rating 3 out of 5]

Seemed like a great book, but largely over my head. Note to re-read this after studying the field of investment more.

[Edward · Rating 4 out of 5]

Good read.

This books provides ideas for those that are near retirement. Although I have 30+ years to go, it provides great insight on what I can do in planning for retirement.

[Chris Arnini · Rating 4 out of 5]

Thought it was a good book as an overview of income based strategies. It would be good for mist levels and accessible for beginners. Some parts are a bit repetitive.