We make $500,000 and want to retire in 15 years with $5 million - should we focus on dividend stocks?

Retirees often adhere to the '4% rule,' but some prefer a dividend-focused strategy, living off yields to protect their principal. A couple aiming for retirement in 15 years plans to build a $5 million portfolio, making use of dividend investments for sustained income. While this strategy offers potential rewards, it is essential to be aware of the inherent risks, especially related to stock market volatility. Young investors comfortable with market swings may find this approach appealing for both passive income and growth.

While it's not necessary to live off solely the yield of one's seven-figure portfolio, it can allow retirees to make their nest egg work hard for them.

Investing a greater chunk of one's nest egg in dividend stocks carries a level of risk that many retirees won't be comfortable with.

Read at 24/7 Wall St.