It's not unrealistic to think you could end up with $400,000 or more in lifetime Social Security benefits, but most people probably can't survive 20 or more years of retirement on that alone. Investing can help you cover the rest, but you have to choose the right investments if you want your nest egg to grow quickly. In this article, we'll look at one affordable option that could easily provide you with more money than Social Security in retirement.
Think about this for a moment: In each of the previous eight bear markets (i.e., not counting the coronavirus crash of 2020), there was at least one double-digit percentage decline in the S&P 500 within the first three years of bouncing back from the bottom. In five of those eight bounce-back rallies, we witnessed two double-digit percentage dips. In other words, the stock market never rebounds as smoothly as things have been over the past 16 months.
When this happens, some businesses choose to give the extra cash to their shareholders in the form of a dividend. Dividend stocks appeal to a lot of investors because they can provide a steady source of income without forcing you to sell any of the stock you already own. This is called a dividend reinvestment plan, or DRIP.