Income Over Wealth

Retirees who started with $500,000 or more had spent 11.8% of it after 20 years, per EBRI. Blanchett and Finke found that about 80% of Social Security, pension and annuity income gets spent, while couples at 65 take about 2% a year from savings, about half of the 4% rule. Dan walks through why that happens, what it looks like on $1.2 million, and what it means while you're still working.Why checks for life get spent and savings mostly doesn'tWhy a withdrawal feels so different from a paycheck, and what required minimum distributions reveal3 moves to make before the last paycheckTake the free Retirement Income Roadmap (7 questions, about 30 seconds): incomeoverwealth.com/mapWatch this episode on YouTube: https://www.youtube.com/watch?v=eoUQkS5XeGAThis episode is educational and focused on strategy and math. Always consult a qualified tax or financial professional before making personal financial decisions.

A bigger balance rarely quiets the worry about running out of money in retirement. Dan runs the same $1.5 million from 2000 through 2007 on real S&P 500 returns, once selling shares to pay every bill and once with the bills covered by private mortgage note income, a year of cash set aside, and the rest left in an index fund. He then runs a second test starting in 2010, the decade when selling shares came out ahead. Like any investment, a note carries risk: the money is committed for the term, and a borrower can stop paying.What 3 straight losing years did to $1.5 million when every bill was paid by selling sharesWhy you don't get to pick your decade, and what the 2010s test showedHow to work out your own number with 2 lines on a piece of paperTake the free Retirement Income Roadmap (7 questions, about 30 seconds): incomeoverwealth.com/mapWatch this episode on YouTube: https://www.youtube.com/watch?v=yUgvSEWgBhAThis episode is educational and focused on strategy and math. Always consult a qualified tax or financial professional before making personal financial decisions.

Your monthly bills are only part of the answer. This episode prices one couple's $7,000-a-month life at each target age, starting with what health coverage costs once the job stops paying most of it. KFF puts the average family premium at $26,993, with the employer covering about three quarters. Dan also covers which savings are allowed to pay you before 59 and a half, and how long the income has to keep up with prices when you plan to 95.Why the 10% early withdrawal penalty matters more at 50 than at 55How the Rule of 55 works, and the accounts it doesn't coverWhy stopping at 50 is mostly about where your money sitsTake the free Retirement Income Roadmap (7 questions, about 30 seconds): incomeoverwealth.com/mapWatch this episode on YouTube: https://www.youtube.com/watch?v=c8CC41z8SmUThis episode is educational and focused on strategy and math. Always consult a qualified tax or financial professional before making personal financial decisions.

Dan left the Air Force at 33 and let 6 rental properties pay every bill, including about 2 years of slow travel. This episode covers what a spreadsheet leaves out, from tenants who pay on their own schedule to the 3 months it took for the stress to wear off. The harder question turned out to be what to do with his days once work was optional. He closes with what carries over if you're 55 with bigger bills and no interest in becoming a landlord.Why income that shows up every month made leaving possible when a savings balance wouldn't haveHow $4,000 a month from 6 rentals compares to $1.2 million under the 4% ruleWhy the same health plan costs almost twice as much at 55 as at 33Take the free Retirement Income Roadmap (7 questions, about 30 seconds): incomeoverwealth.com/mapWatch this episode on YouTube: https://www.youtube.com/watch?v=e44Ro_nu46cThis episode is educational and focused on strategy and math. Always consult a qualified tax or financial professional before making personal financial decisions.

If most of your savings sits in the stock market, it only pays you when you sell shares. This episode prices the same $5,000 a month from dividend stocks, rental houses and private mortgage notes, and grades each one on what it asks of you and where it falls short. It also looks at what an 18% market drop does to someone whose bills are covered by notes.Why a dividend check still moves with the market, using the 2009 cutWhere a rental fails the paycheck test, even at a 7.4% cap rateWhy a note fits inside a self-directed IRA and a rental runs into the IRS rulesTake the free Retirement Income Roadmap (7 questions, about 30 seconds): incomeoverwealth.com/mapWatch this episode on YouTube: https://www.youtube.com/watch?v=G1VXyV4lSwQThis episode is educational and focused on strategy and math. Always consult a qualified tax or financial professional before making personal financial decisions.