When planning for retirement, the debate between dividends and drawdowns is crucial. Dividend investing preserves capital, provides consistent cash flow, and companies like Realty Income have increased dividends over time. Dividend strategies offer a more secure and comfortable retirement for many Americans, allowing for earlier retirement than expected.

Drawdown strategies, like the 8% rule, can deplete savings and leave retirees vulnerable during market downturns. Dividend investing allows your portfolio to work for you, generating income while preserving your principal and compounding your wealth. This approach offers more long-term security and durability in retirement.

Dividends offer a reliable income stream, especially during volatile market years. Companies with a strong dividend history continue to pay dividends, providing income reliability and growth over a drawdown strategy. Dividend growth stocks also offer a buffer against inflation, maintaining purchasing power and lifestyle without tapping into principal.

By focusing on dividends over drawdowns, retirees can enjoy predictability and consistency in retirement income. Building a diversified dividend portfolio ensures a steady flow of income, regardless of market fluctuations. Dividend investing offers a more psychologically stable approach to retirement, reducing stress and providing financial security for the long term.

Read more at Yahoo Finance: The New Retirement Playbook: Dividends, Not Drawdowns