The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing


Subject:  Real Estate, Asset Alloc and Withdraw Rate Date:  3/16/1999  1:20 AM
Author:  OldOne Number:  9171 of 105928

From reading the thread starting at:, I gather that the "safe" withdrawal rate is on the order of 6% for equities invested along any of the BTD strategies.

An interesting (for me at least) question is can I safely increase this rate to some percentage of my net worth if I have a substantial holding in real estate?

The real estate is divided between two income properties and my primary residence. Right now the equity represents 40% of my net worth.

It was 50% until last month when I refinanced, took out a substantial amount of money and put it into the Foolish Four.

Early retirement could be 1 to 2 years away if I can justify a withdrawal rate that would keep my standard of living about constant.

The rate of equity increase in real estate has been at least as good or possibly better than equities for me. At least the bottom line is that over the years I have put less money into real estate than stocks, and the net value of the real estate was equal until I deliberately reduced it. On the other hand I wasn't a Fool until 3 years ago...

Copyright 1996-2022 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us