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Let’s be honest - 2022 wasn’t fun for most investors. Stocks dropped, bonds dropped, and a lot of retirement plans quietly hit the “recalculate” button. Fortunately, the years since have given investors a much better environment to work with: higher yields, recovering markets, and, if you built the portfolio right, steady income that doesn’t depend on guessing the next move from the Fed.
If you're aiming to retire in 2025, you're not late. You're right on time to use the market’s rebound, lock in solid income, and sidestep the panic that keeps financial headlines interesting. Whether you're a few months out or still charting the path, there's a way to do this that doesn't involve spreadsheets, stress, or canned pet food.
You Don’t Need $5 Million to Retire (But If You Have It, Great)
There’s a persistent myth that you need $5 million and a part-time consulting gig to retire “safely.” That’s great for people who crushed IPOs in 2012. The rest of us are focused on something a little more practical: recurring income from positions that don’t require watching the S&P 500 like a hawk.
With high-quality equity REITs like (FRT) and (AVB) , or monthly dividend payers like (MAIN), you can create consistent cash flow that doesn’t fall apart the second a tech stock sneezes.
What You Actually Want: Stability
Mortgage REITs might make for exciting charts, but they aren’t long-term income plays. They’re built for traders who can stomach volatility and don’t mind watching price swings over their morning coffee. If that’s not your retirement vibe, you’re not alone.
The better alternative? Preferred shares - especially those from mortgage REITs and BDCs.
They often yield 7% to 9% (sometimes more), trade below call value, and offer a level of price stability you’re not going to get from common shares. When paired with solid equity REITs or BDCs, they form the backbone of a reliable income portfolio.
Tickers like (NLY-F), (AGNCN) , or (CIM-C) offer income without forcing you to play interest rate roulette on a weekly basis.
BDCs: The Monthly Paycheck That Doesn’t Complain
Business Development Companies (BDCs) exist for one reason: to pay you. Some, like (ARCC) and (MAIN) , have long histories of solid performance and responsible management. Others… well, let’s say due diligence matters.
Still, when selected carefully, BDCs provide exposure to private credit markets and hand over dividends like clockwork. Retirees love them. So do people who like getting paid 12 times a year.
Just don’t fall into the trap of reaching for yield at any cost. A 13% dividend from a company with a junk-grade portfolio isn’t “free money.” It’s a warning label.
Tech Stocks
Let’s address the elephant in the room. You clicked on this article, and maybe the algorithm helped because I dropped a few tickers like @AAPL, @NVDA, or @TSLA into the metadata. (AAPL), (NVDA), and (TSLA) are big tech companies and potentially good ones. Great even.
But they may not be the best fir for your retirement income plan.
They don’t pay meaningful dividends. They don’t send you checks while you sip coffee. What they do offer is volatility and optional regret.
Retirement Isn’t Magic - It’s Math (With a Little Margin of Safety)
If you’re expecting to cover 100% of your expenses from investment income, you’ll want a mix of:
- Equity REITs with reliable payouts: (WPC) , (NNN) , (ADC)
- BDCs with proven management: (ARCC), (TSLX)
- Preferred shares with solid coverage ratios and fixed-to-floating terms: (AGNCN) , (TWO-B)
Then you add in Social Security, maybe a pension or annuity, and you’ve got a real plan - not a Pinterest board of dreams.
And yes, inflation still matters. So does sequence of returns risk. But those are challenges you plan for, not reasons to wave the white flag and keep working until 78.
Final Thoughts: No Cat Food Required
Retirement in 2025 isn’t reserved for people who aced every financial decision since 1995. It’s entirely possible - even if you made a few wrong turns, even if you started late, even if you learned the hard way that 8% yield doesn’t mean 8% safety.
Stick to high-quality income payers. Build a portfolio with actual cash flow. Respect risk - but don’t fear it. And above all else: don’t let market narratives convince you that it’s too late.
You don’t need a yacht. You just need freedom—and maybe a few dividend checks that let you laugh every time you pass the cat food aisle.
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This article was compiled by my assistant. If there are any mistakes, blame him - I certainly will.
Disclosure: No position in any stock discussed in this article . I may frequently trade in the preferred shares of any mortgage REIT and occasionally in the common shares.
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