This episode prices three retirement balances two ways and shows each one in dollars per month, with no Social Security in any of the numbers. The first way is the 4% rule, where everything stays invested and a little gets sold every month. The second is how Dan would set it up with his own money: private mortgage notes cover the bills with 12 months of cash behind them, and the rest stays in stock index funds that never get sold to buy groceries. It ends on a reader in his early 50s with $2.3 million and $7,000 a month of fixed bills, run both ways.
- What the 4% rule pays at each balance, and what Morningstar found in nearly 70% of the plans that ran out of money
- How each balance splits under the income approach, using the 8% to 12% market range for mortgage notes published by The Entrust Group, and which retirement accounts can hold a note
- What can go wrong with notes, from borrowers who stop paying to a payment that never gets an inflation raise
Take the free Retirement Income Roadmap (7 questions, about 30 seconds): incomeoverwealth.com/map
Watch this episode on YouTube: https://www.youtube.com/watch?v=-tmnBnfg4tg
This episode is educational and focused on strategy and math. Always consult a qualified tax or financial professional before making personal financial decisions.
