Can I Really Retire on High Yield Stocks or Should I Focus on Growth Instead?

"If there is one thing we can all be sure of, it's that we all want to retire as soon as we possibly can. The goal is to either to make as much money as possible through working or invest smartly and end up with as much money as you can before finally deciding to call it quits from the workforce."

"The challenge is that, right now, the Redditor is unsure whether they can do what they had originally planned. To be fair to the Redditor, they rightfully and openly acknowledge that their original plan isn't as solid as it was previously, so they have changed their strategy and are now using distributions from high-yield stocks to fund growth stock purchases."

"It's also safe to say that I used to think of high-yield stocks as something of a ticket to freedom. Like this Redditor believed, the plan was relatively simple as you throw a bunch of money at high-yield stocks or ETFs and then sit back and watch the dividend earnings roll in. It's absolutely safe to say that there was a clear picture of this Caribbean island, living off entirely on distributions and letting the portfolio just work in the background."

Many people aim to retire as early as possible by earning more or investing wisely to accumulate sufficient savings. A Redditor in r/YieldMaxETFs hoped to retire on a Caribbean island but now doubts the original plan. The Redditor acknowledged the plan's diminishing solidity and shifted to using distributions from high-yield stocks to fund growth-stock purchases. YieldMax funds carry considerable uncertainty about whether distributions will decline over one to five years. High-yield stocks initially appear to offer a straightforward path to living off dividends, but reliance on distributions faces the reality of potential reductions.

Read at 24/7 Wall St.