This article was inspired by a series of posts by fellow early retirement bloggers about how to live off your wealth during retirement. They called this a retirement draw-down or withdrawal strategy, which, by the way, could be very different than your strategy to build wealth. I touched on my withdrawal strategy in How to Retire Early & Confidently Using Real Estate, but I will go into more depth in this article.
For me, a good retirement withdrawal strategy has two primary goals:
- Pay for all your current living expenses
- Not run out of money in the future
It turns out that rental income and other real estate investing strategies work great to achieve these goals. And real estate can make a big difference whether it’s a small or large portion of your overall portfolio.
So, in the rest of the article I’ll share ideas on how to use rentals for a retirement withdrawal strategy.