What if you could go to your mailbox once a month and pick up checks that you can just cash and live off of? Like Mailbox Money.
There are, of course, a number of ways to accomplish this, with varying results. You could buy dividend-producing stocks. But it takes a lot of cash sitting in the market to produce much income at 4 or 5%. And then there’s the fact that you could lose the asset value when the market goes down. Hard money loans can yield high returns but these are usually short term and carry significant risk. For most of us, Social Security will either not exist or will allow only a very modest lifestyle. Plus, we will likely have to be fairly advanced in age to start drawing it. Who wants to wait that long to start enjoying the freedom of their retirement years? Most of us want to be young and well enough to enjoy it.
The other option is to build a portfolio of investment properties, pay them off as quickly as possible, then live off of the income they produce. This way you can live where you want, how you want, whenever you’re ready. As rents rise over time you will be able to hire a property manager in the event your dream retirement includes living in a villa in Tuscany, a chalet in the Alps, or on a houseboat in Amsterdam – all the time or for part of the year. I’m going for the Alps, houseboat and villa, myself.