Financial Independence: How Much of Your Income Do You Need to Save?
Financial Independence: How Much of Your Income Do You Need to Save?
Abstract
If you bring home $5,000 per month after taxes and save and invest $2,000 of it, you have a 40% savings rate. The average baby boomer’s retirement savings is only $136,779. Real estate investors can earn higher cash-on-cash returns than 10% and withdraw more than 4% of their nest egg each year. The Average return on the S&P 500 since its inception is around 10.5.5%. The average stock investor doesn’t invented and to for real estate investors. The average investment on the S &P 500.5% is around 10,000. You don't have to worry about safe withdrawal rates. You could quit when you got halfway there, as long as you found other fun ways to bring in the additional $18,000 to bring the extra $16,000 involuntarily.
