Wes Moss: Retirement Happiness “Starts at a Million” in Liquid Savings

Wes Moss has raised his retirement happiness target. Moss said during the October 20 Ask An Advisor section of The Clark Howard Podcast that his updated research for The Retire Sooner Method shows that noticeably higher happiness relative to the baseline “starts at a million” in liquid savings. That includes 401(k), 403(b), IRA, Roth and brokerage money. 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 older book, Moss said, “the inflection point in the old book was at 500k.” Moss added that after inflation, the old $500,000 mark is “probably 800 today.” Back in April, he put the target this way: “We want to get to a million dollars in liquid assets. We want $100,000, let’s say, in retirement income.” So how much income can Moss’s $1 million actually produce?

Moss’s Yield Ladder Puts a Price on Peace of Mind

Moss uses what he calls a yield ladder. Each step pays more income and takes more risk. On September 29, Moss estimated the S&P 500 yields about 1.2%, while utility ETFs yield around 3%. Moss said big energy companies yield closer to 4% to 4.5%, and Moss placed REITs and closed-end funds in the 7% to 8% range. He calls that income “permission, license to feel okay about spending.”

Here is how six real holdings measure up, using their annualized forward payouts and October 23 prices:

Energy’s Rally Shrank the Middle Rung

The SPDR S&P 500 ETF Trust is the low step, paying $7.58 per share over the trailing 12 months. The Utilities Select Sector SPDR Fund lands close to Moss’s 3% estimate.

The energy step has fallen below Moss’s range because prices ran ahead of payouts. Exxon Mobil is up 55.27% year to date and Chevron is up 57.27%. Both payouts are still rising. Exxon’s quarterly dividend went from $0.95 in 2024 to $1.03 in 2026, and the company plans $20B in buybacks this year. Chevron raised its payout to $1.78 per quarter as Brent averaged $104/BBL vs $68/BBL a year earlier. Anyone buying energy stocks for income today gets a lower starting yield than Moss’s ladder suggests.

Top Rungs Pay Monthly, With Very Different Risk

Realty Income has declared 673 consecutive monthly dividends, and its second-quarter SEC filing marked its 115th consecutive quarterly dividend increase. Occupancy stands at 98.8%, and 2026 AFFO guidance was raised to $4.44-$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 held steady since 2023, but shares have fallen 10.09% over the past year. A yield that high can signal that the market sees elevated risk in the fund’s credit portfolio. Moss has also said his ladder moves “into other areas, bonds and other specialty categories, so that we’re not leaning in on these ultra-high-yielding stocks.”

What a Blended Ladder Means for Retirees

Among the five lower-yielding holdings, only Realty Income produces more than $50,000 on Moss’s $1 million. For most retirees, that leaves Moss’s $100,000 target dependent on Social Security, pensions, or a blend of steps. Spreading money across the ladder gives up some yield in exchange for not relying on any single payer (we walked through how to build a dividend ladder that funds retirement without touching the principal in a free guide). Climbing higher brings in more cash each year, but the principal is less stable.

The next milestones are close. PDI pays on November 2, SPY on October 30, and Realty Income on November 13. Exxon and Chevron will show in their next announcements whether payout growth can keep up with their share prices.

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