Today’s article is extra-nerdy. Pull on your Coke-bottle reading glasses and let’s run through a little bit of math.
Ready? Let’s go.
If you’re retiring on index funds, you might plan your retirement on the 4 percent withdrawal rule.
But if you’re retiring on rental properties, you could use the equivalent to a 6 percent withdrawal rule.
This holds true even if total returns on the two investments are the same.
