Income Over Wealth

What $500K, $1M and $2M pay each month in retirement, priced with the 4% rule and with an income-first setup built on mortgage notes

Show Notes

This episode prices three retirement balances two ways and shows each one in dollars per month, with no Social Security in any of the numbers. The first way is the 4% rule, where everything stays invested and a little gets sold every month. The second is how Dan would set it up with his own money: private mortgage notes cover the bills with 12 months of cash behind them, and the rest stays in stock index funds that never get sold to buy groceries. It ends on a reader in his early 50s with $2.3 million and $7,000 a month of fixed bills, run both ways.

  • What the 4% rule pays at each balance, and what Morningstar found in nearly 70% of the plans that ran out of money
  • How each balance splits under the income approach, using the 8% to 12% market range for mortgage notes published by The Entrust Group, and which retirement accounts can hold a note
  • What can go wrong with notes, from borrowers who stop paying to a payment that never gets an inflation raise

Take the free Retirement Income Roadmap (7 questions, about 30 seconds): incomeoverwealth.com/map

Watch this episode on YouTube: https://www.youtube.com/watch?v=-tmnBnfg4tg

This episode is educational and focused on strategy and math. Always consult a qualified tax or financial professional before making personal financial decisions.

What is Income Over Wealth?

Retirement is an income problem, not a net-worth problem. Dan Wilson is a real estate investor, not a financial advisor. He buys and rents houses in Ohio, funds them with private money instead of bank loans, and built enough income from real estate to leave the Air Force. Twice a week, in about fifteen minutes, he works out how to replace a paycheck in retirement: where monthly income actually comes from, what each source costs you in risk, and how private lending works, including what to demand from any borrower. Every episode is also a video on YouTube. Free tools, the weekly letter, and every episode's notes are at https://incomeoverwealth.com. Educational only. Not financial, legal, tax, or investment advice, and not an offer or solicitation of any investment.