When I look for dividend paying stocks for the long run, a few of the characteristics I like to see are a reasonable dividend yield of at least 2.5%, a low payout ratio, low debt, and a strong dividend growth rate over the past five years. Although Microsoft has normally not been looked at for its dividends, it’s time investors being thinking differently about this company. With a 2.6% dividend yield, a 20% annual dividend growth rate over the past five years, a payout ratio of only 26%, and very little debt, Microsoft is poised to return strong dividends for years to come.

Have you heard the latest news on social security? The social security trust fund will be short on funds three years earlier than last projected. The retirement and disability fund is now projected by the Social Security Board of Trustees to be short on funds starting in 2033. By law this means that all of those who receive benefits will have their benefit payments cut by an amount necessary to restore the fund to solvency. This is across the board for everybody. Currently this amount is right around 25%.

Since 2007 we have been watching one financial crisis after another unfold. Greece has defaulted, Spain is moving that way, the euro is in danger of disintegrating, and the U.S. continues to add on $1.5 trillion deficits to its debt. Meanwhile, the Federal Reserve continues to hold short-term interest rates near 0%, which makes for a terrible situation for those wanting to invest in fixed-income. Times are more than interesting when it comes to investing; they’re downright fraught with danger.

There are so many articles written and so much talk today about how a lot of folks in their 50s and 60s either won’t be able to retire before age 70 or may never be able to retire at all. Instead of rehashing this downer of a scenario, I would like to discuss what a person or a couple needs to have today in order to retire before age 65.

From Advisors4Advisors: A nice review of our retirement planning application for advisors.