Wes Moss Says Retirement Happiness Now “Begins at $1 Million” in Liquid Assets

Quick Read

• Wes Moss has lifted his retirement happiness benchmark to $1 million in liquid savings, up from $500,000, saying inflation has pushed the earlier figure to about $800,000 in today’s dollars.

• Realty Income (O) offers a 5.7% yield on $1 million, or $57,268 a year, supported by 673 straight monthly dividends and 98.8% occupancy.

• PIMCO Dynamic Income Fund (PDI) yields 18.5%, producing $184,906 on $1 million, though its shares have slipped 10% over the past year, pointing to higher credit risk.

Wes Moss says the amount of savings needed to feel good about retirement has gone up. In a recent appearance on The Clark Howard Podcast, he said his updated research for The Retire Sooner Method suggests that a noticeably higher level of happiness relative to the baseline “starts at a million” in liquid savings. That includes 401(k), 403(b), IRA, Roth, and brokerage accounts. Reaching that level, he said, gives retirees “a ton of peace of mind around that and what that money can produce in income.”

In his earlier book, Moss said the “inflection point” was $500,000. He noted that after inflation, that figure is now closer to $800,000. He has also framed the goal as getting to $1 million in liquid assets and producing about $100,000 in retirement income. So how much income can $1 million actually generate?

Moss’s Yield Ladder Puts a Dollar Figure on Peace of Mind

Moss describes his framework as a yield ladder, where each step brings more income along with more risk. He has said the S&P 500 yields about 1.2%, while utility ETFs are around 3%. Large energy companies, he said, are closer to 4% to 4.5%, while REITs and closed-end funds sit in the 7% to 8% range. He calls that income “permission, license to feel okay about spending.”

Below is how six actual holdings compare, using annualized forward payouts and October 23 prices:

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Energy’s Surge Has Narrowed the Middle Rung

The SPDR S&P 500 ETF Trust sits on the low end of the ladder, paying $7.58 per share over the trailing 12 months. The Utilities Select Sector SPDR Fund comes in close to Moss’s 3% estimate.

The energy tier has slipped below Moss’s range because share prices have outpaced dividend growth. Exxon Mobil is up 55.27% year to date, while Chevron is up 57.27%. Both companies have continued to raise payouts. Exxon’s quarterly dividend moved from $0.95 in 2024 to $1.03 in 2026, and the company plans $20 billion in buybacks this year. Chevron lifted its quarterly payout to $1.78 as Brent averaged $104 per barrel compared with $68 a year earlier. Investors buying energy stocks for income now are getting a lower starting yield than Moss’s ladder implies.

The Highest Rungs Pay Monthly, but the Risk Profiles Differ

Realty Income has paid 673 consecutive monthly dividends, and its second-quarter SEC filing marked the 115th straight quarterly dividend increase. Occupancy stands at 98.8%, and 2026 AFFO guidance was raised to $4.44 to $4.45 per share. That easily covers the $3.258 annualized dividend.

PIMCO Dynamic Income Fund yields more than twice the top of Moss’s range. Its $0.2205 monthly distribution has remained unchanged since 2023, but the shares have dropped 10.09% over the past year. A yield that high can indicate that investors see increased risk in the fund’s credit portfolio. Moss has also said the ladder extends into other areas, including bonds and specialty categories, so that “we’re not leaning in on these ultra-high-yielding stocks.”

What a Blended Ladder Means for Retirees

Of the five lower-yielding holdings, only Realty Income produces more than $50,000 from Moss’s $1 million example. For many retirees, that means reaching the $100,000 target would still depend on Social Security, pensions, or a mix of different holdings. Spreading money across the ladder reduces reliance on any single payer, even if it means giving up some yield. Moving higher can bring in more cash each year, but the principal is less secure.

The next payout dates are approaching. PDI is set to pay on November 2, SPY on October 30, and Realty Income on November 13. Exxon and Chevron will next show whether dividend growth can keep pace with their share prices.

Learn 7 Ways To Generate Income With A $1,000,000+ Portfolio

If you’ve saved over $1,000,000, this guide is for you. The last thing you want in retirement is to run out of money, you want your money to generate lasting income while you enjoy your life.

Now you can learn the strategies wealthy retirees use to fund their retirement with The Definitive Guide to Retirement Income from Fisher Investments. Download the guide today! (sponsor)