“I saved up a million dollars—and all I got was this lousy $40,000 a year.”
That’s the metaphorical T-shirt that the average retiree wears.
Actually, it’s worse than that. The average retiree aged between 65 and 74 doesn’t have a million dollars saved as a nest egg. They have $609,230, and that’s the mean average, not the median. You can be sure the median is a lot lower.
Based on the traditional 4% rule, the average retiree takes an annual income of just $24,369 from that nest egg. Don’t blow the party kazoos all at once.
All this means that the traditional retirement model just doesn’t work well. To put it bluntly, the math sucks.
I can do better—and so can you.
Keep reading the article here: https://www.biggerpockets.com/blog/the-problem-with-paper-assets-for-retirement-planning
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The Problem With Cash for Retirement Planning—And How Real Estate Solves It | BiggerPockets Daily podcast - Listen or read transcript on Metacast
