The Magic of High-Yield Index Fund Reinvestment - Financial Freedom, #164

Index funds are a great introduction to stock market investing. In fact, many people invest only in index funds until retirement. But then there is a dilemma; they must sell shares to generate income. But what if they converted their index fund dividends into high-yield products? The idea is to keep your principal and growth inside the index funds while taking the dividends to create supplemental income. Wouldn't it be nice to retire with $1 million in index funds and $50, 000/year in dividends?  This scenario may be possible with your high-yield reinvestment and a little additional cash flow.
It's worth some time to consider the opportunities. Good Luck!