I have two questions for you: When would you like to retire? How much will you need ($$$$) to retire on?
Now that you have answered these questions we can start planning.
My answer would be: “how can we solve this problem with real estate”.
Let’s take an example. Say you will need $6,000 every month to sustain your retiree life-style. If we use real estate, rental properties, this is how the math would work:
One house, once free and clear, will generate, on average, $700 every month after expenses: property tax, insurance, property management, repairs, and vacancies.
9 houses will provide you the needed $6,000.
To buy 9 such houses (can be done over a period of time) you will need about $17,000 for each house, or $153,000 for all 9 houses – this is based on a $70,000 house, 20% down-payment per house plus $3,000 in closing cost per house.
If you don’t have $153,000 available, start with 1 house, and just keep buying 1 or 2 houses every year until you reached your goal.
Once acquired just let it “sit” there and generate rent and get paid off so you can reach your retirement with the required monthly income.
Keep in mind:
Once the houses are all free and clear your net worth would be $630,000 before inflation.
Your $6,000 monthly are inflation proof.