Have you ever wondered whether conventional retirement wisdom actually works? This episode digs into real questions from real listeners wrestling with investment decisions right now. From analyzing the famous 4% drawdown rule to evaluating an unusual student housing opportunity, these aren't theoretical discussions—they're practical scenarios that reveal how investment strategies actually play out.

The mailbag format uncovers something valuable: the gap between what financial planning textbooks says and what actually works in practice. Whether you're questioning your own retirement approach, considering an unconventional opportunity, or wondering if you're even ready to start investing, these conversations explore the thinking process behind making informed decisions when the stakes are real.

Is the 4% retirement withdrawal rule still reliable for planning purposes?

The rule was developed using market data from 1926 to 1976 and designed for a 30-year retirement. Today's environment differs significantly—people live longer, inflation patterns have changed, and the housing component was removed from inflation calculations. The rule can't account for unexpected inflationary pressures or the increased market volatility we see today, where fluctuations are much larger than historical norms.

What should someone consider before investing in student housing properties?

Student housing presents unique management challenges that differ from traditional residential investing. Before pursuing any opportunity, analyze the actual costs including required renovations, local regulations around issues like lead paint and asbestos, and whether the after-repair value supports the investment. Consider whether the opportunity fits your model or if you're reinventing the wheel in a more complicated way.

What credit score and capital do you actually need to start investing in real estate?

For using hard money lending and transitioning to traditional financing, credit scores in the mid-600s or higher are typically necessary, with scores in the 700s being more ideal. Even with creative financing strategies, you need both adequate capital and good credit because lenders need confidence they can refinance you out of short-term loans. Building both simultaneously creates more options than having one without the other.