If you had 5M$ how would you invest it so that you get 30k per month?
curious. as that would be my target to retire. i’m way off from it. but would love to hear your thoughts.
That’s my goal
All in black. Do it a couple of times.
This is the fastest way.
7.2% annual return - I guess I'd buy a 20 unit apartment complex in Ohio, Alabama, West Virginia, or some other low cost of living state. Or throw into a 25-30 stock portfolio of dividend paying companies Or if you've only got 13 years to live you could just draw that down as cash 🤷
Thank you. 20 unit apartment complex gives you 30k?
It's a starting point, you'll need to do the research to get the right cap rate on a property. But with $5MM you ought to buy in cash, stick with a class A property, keep some cash aside for maintenance, and have it professionally managed then I think it's possible.
$BTC
You are looking at 7% rate of return. Doing it without significant risk may be difficult. Balanced Mutual funds come out to 7% on average in the very long run, but what you expect from dividends may be around 3%
^ this
Safe withdrawal is 4%. You need 7% which means more risk or eating up the principal.
What does safe withdrawal mean?
https://www.investopedia.com/terms/s/safe-withdrawal-rate-swr-method.asp To get to the answer 4% academics spent a lot of time figuring this out. It’s more complicated than meets the eye.
Too much for infinite withdrawl so either make more money or leverage the 5m in real estate and cash flow it.
OP what is the breakdown of your planned expenses? Are you planning to wipe your ass with $100 bills?
You need to be making 30k per month to retire..?