Warren Buffett wouldn’t worry about cash if he retired with just $1M — here’s why and how to copy his strategy

Core Insights - Warren Buffett's net worth is approximately $151 billion, but he believes he could live comfortably on much less, estimating he could manage without 99.99% of his wealth [1][2] - Buffett suggests that a $1,000,000 portfolio generating $30,000 annually in dividends would suffice for a comfortable lifestyle, indicating a need for at least a 3% yield [2] - The current market environment presents challenges for achieving such yields, with the S&P 500 offering about 1.2% and the Vanguard High Dividend Yield ETF at approximately 2.5% [5] Dividend Yield Trends - Average dividend yields have been declining, with the S&P 500 yield below 3% since the 2008 financial crisis [5] - Companies have increasingly favored stock buybacks over dividends, a trend noted by Deutsche Bank's strategist Jim Reid, who attributes this to a market dominated by high-growth technology firms [6] - Passive investors may struggle to achieve Buffett's preferred yield of 3%, but diversification into other asset classes or selective stock picking could help surpass this threshold [7]