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Among workers, 27% havent saved a dime for retirement.
The conventional math isnt pretty.
So, how can you be creative and maybe a little unconventional to do more with less in retirement?
You also dont have to stay forever.
By the time the stock market recovers, youve gutted your portfolio beyond where it can recover.
But thats not the only creative approach to solving the sequence of returns risk.
You dont sell any stocks to live on during this period.
After a few years, you then move more money back into stocks.
The optimal portfolio in the study comprised one-third U.S. stocks and two-thirds international stocks to provide diversification.
That means retirees could withdraw significantly more money in retirement with a smaller nest egg.
Even more impressively, the authors found that this optimal portfolio had lower risk.
What if you could live off the dividends and leave your investments to grow in value?
Some syndications and funds pay me a modest 3-5% rent distribution.
Others pay 5-8% or even more.
One fund pays me a 16% yield like clockwork.
The answer, of course, is that most people dont understand private equity real estate.
Many dont like the lack of liquidity and the long-term commitment, and others worry about risk.
Sure,Treasury bonds come with lower default risk.
But I invest in debts secured by real property, with alow loan-to-value ratio.
If the borrower defaults, the property is collateral for recovering my money.
For example, I invested 10% interest with a real estate investor I know.
He secured my note with a first-position lien against a property worth more than doublemy loan amount.
Dont know any real estate investors and dont feel like joining an investment club?
Ive also invested money withGroundfloor, which has paid a consistent 9-10% average return since inception.
You dont have to choose between these options.
Mix and match creative retirement savings approaches to stretch your nest egg further and live larger on less.
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