|Stock Market (SM): There are multiple ways to save for retirement. The Stock Market is a very popular way to do so, however it does have a few issues. One of them is actually crucial: how long you will live compare to how much money you will save… Are you sure you will not run out of money????
It’s a guessing game based on the Evolution of the market and the Extra Medical Expenses due to age. There is also an Impossibility to retire early (not enough contributions).
So why is it so Hard?
– The Fees can go from 1% to 3% of your investment… so you won’t see the full return of your investment.
– Most of Retirement Plans don’t take in consideration the Inflation. 2 millions today won’t buy the same thing in 20 years!!The Other Option, and to me a much better option, is the “Rental Properties”:
1- Build over the years a portfolio of 10 to 15 rental properties around the $100,000 each. It will give you a $5000 to $7000 a month of cash flow without worrying about the evolution of the Stock Market.
2- Through time, that Monthly Income will increase because the rent will follow the inflation.
3- If you need to get a big amount of money, you can always sell some of them.
4- If the stock market crashes, you will definitely lose some of your retirement plan money but, in Real Estate, unless you sell the property, it will just be paper money.