It could be a decent idea for long-term dividend growth investors to consider.
Tax-deferred retirement accounts like IRAs and 401(k)s serve as an essential part of most people’s long-term savings plans. While these are powerful tools, they also come with some tax complications after investors reach a certain age due to required minimum distributions, or RMDs. Let’s take a closer look at the complications posed by RMDs, as well as the suitability of using dividend stocks to meet these requirements.
The Social Security Administration estimates that two thirds of retirees will get the majority of their income from the program, which has important implications for investors hoping to supplement these payments with dividends. With this in mind, let’s take a look at how dividends can affect Social Security benefits to help you maximize your income in retirement.