With $850,000 saved and a $500,000 income, we want to retire in the near future – should we shift to dividend stocks?

Core Insights - A couple in their mid-30s aims to retire in about 15 years with a target of $5.3 million, currently holding $850K in assets and a combined annual income of $500K [1][3] - The husband is considering a dividend-heavy portfolio as a conservative investment strategy, despite knowing the market typically yields a 7% average annual return [2][3] - The couple plans to follow the 4% rule for withdrawals, allowing for an annual spending of $142K during retirement [3] Investment Strategy - The husband is attracted to dividend stocks that offer yields between 2% to 6%, viewing them as a more stable investment compared to traditional options like CDs [2][4] - There is a belief that focusing on dividend stocks could provide more stability, although some stocks have shown flat growth or declining prices [3][4] Risks and Considerations - Other Reddit users caution that companies may cut dividend payments, highlighting the inherent risks in relying on dividend stocks for income [6][7] - It is noted that there is no guarantee that dividends will remain stable, and investing in dividend stocks may not be safer than investing in an S&P 500 index fund, which has historically provided higher average annual returns [8]