Aim $750,000 for $30,000 annual dividends

Saving for retirement is important to avoid relying on outside income. With enough savings, you can generate a steady income from dividends. Here is how you can aim to collect $30,000 each year in retirement. Investing in growth-focused funds is a good strategy. An exchange-traded fund (ETF) is a strong choice for long-term savings. ETFs are less risky than individual stocks because they offer more stability. One popular option is the Vanguard S&P 500 ETF. This fund tracks the performance of the largest U.S. companies and has averaged about 10% returns over time. To achieve substantial dividend income, you need to build a large investment balance. A goal of around $750,000 is ideal for this. You can reach this amount by investing monthly or by making a one-time large investment. If you invest about $410 every month for 30 years, you could grow your investment to over $750,000. Alternatively, a lump sum investment of roughly $57,000 could also result in a similar balance over the same period. Once you hit your savings target, the next step is to invest in income-generating options. The SPDR Portfolio S&P 500 High Dividend ETF is one option to consider, currently offering a yield of about 4%. If you invest $750,000 in this fund, you could earn nearly $31,000 per year in dividends. It's also important to diversify your investments. This means not putting all your money into one fund. By choosing different ETFs, you can keep your original investment safe while receiving steady income. Even if you can only invest small amounts now, starting today can help you grow your savings in the long run.