This Is My Retirement Blueprint: The 4% Rule That Builds Wealth And Income

Leo Nelissen49.85K FollowersFollow5ShareSavePlay(16min)Comments(2)SummaryI am shifting from the 5% Rule to a 4% yield focus, blending income and growth for optimal long-term wealth building.My model 4% portfolio combines high-quality dividend growers and select higher-yielding stocks, targeting a 4.2% yield with 8–9% annual dividend growth.Key holdings include UNP, RTX, MA, OKE, REXR, CNQ, VICI, EPD, SCHD, and MAIN, offering diversification and flexibility for retirement planning.Time horizon and compounding are paramount; the 4% Rule offers a superior risk/reward mix versus chasing higher income from the outset. FG Trade Latin/E+ via Getty Images Introduction Since last year, I have increasingly discussed the “5% Rule.” I would make the case that I coined that term. However, it truly isn’t anything special, at least not compared to other academic findings in the field of finance. It’sThis article was written byLeo Nelissen49.85K FollowersFollowLeo Nelissen is a long-term investor and macro-focused strategist with a passion for dividend growth, high-quality compounders, and structural investment themes. He combines big-picture macro analysis with bottom-up stock research to identify durable businesses with strong cash-flow potential. Leo also writes for Main Street Alpha, where he publishes deeper-dive research and actionable investment ideas for long-term investors.Analyst’s Disclosure: I/we have a beneficial long position in the shares of CNQ, REXR, UNP, RTX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.