Growth portfolio dividend yield has to be low is a myth . But that said my portfolio tends to be focussed more on stocks that offer higher value .
Capital appreciation is better than most mutual fund Gr option & Index TSR over 1yr , 3 yr and 5yr period …
My current portfolio dividend yield is >2.8% . Again this is because equity price has depressed in this downturn otherwise in normal case it is around 2.4% - 2.5%
Now on your example of annual example of 12 L annual expenses
When one is starting as Full time investor one needs to have min 1.2 times dividend yield ie equity PF will be around 5 crores Min … for person with annual expenses of around 12 L
Assuming equity debt ratio of 75% -25% you need to have 1.25 crores in debt .
Plus primary residence w/o debt otherwise living within 12L annual expense is difficult .
So in all you are right one needs have net worth of 70- 80X annual expenses for being full time investor … This is important if one has to maintain his lifestyle across business cycle … Say like in CY if dividend yield gets reduced one should get way with minimum pain …
I became full time investor at age of 43 after 17 years of corporate life –
More details are in thread Portfolio Analysis - Shailesh