Where are the retirement planning software tools for dividend investors?
Really enjoy your articles, and have been drinking the Kool-Aid on dividend growth investing for about 10 years now – really wish I had understood the power of the model decades sooner.
I’m now approaching retirement with dividend income from a regular brokerage account (qualified dividends and one MLP) and an IRA (withdrawals taxed as ordinary income). We’re fortunate in that the combined total should cover our expenses in retirement.
I have a spreadsheet with various projections and tax models, but wanted to get a more sophisticated and wholistic look at my retirement income and expense scenarios. So far I’ve entered all our data into Maxifi and MoneyGuidePro (through TDAmeritrade), and even had a two hour consult with my TDA rep yesterday.
Both tools use the ‘standard’ approach of assuming an X% drawdown of assets each year, based on Y% of growth in underlying assets, forecast out over expected lifetime, followed by a Monte Carlo analysis to assess probability of success. I must have spent an hour of the two hours arguing with our rep – it makes absolutely no sense to be selling 2-3-4% of our assets in retirement when my dividends are generating more than 4% a year without selling a thing.
Neither software package adapts well to a dividend-funded retirement.
I’ve searched on Google and can’t find anything – are you aware of any comprehensive retirement planning tools like those that are either specifically built for dividend scenarios, or which at least include them as an option?