This is all good and well, until a 2008 happens. That's why strategies like this are only reliable if you have generational wealth to start with. You have to be able to withstand massive risk.

[–] sugar_in_your_tea 11 points 7 months ago

Massive is relative. If you have $1M and need $40k to live on (4% rule), a 50% downturn is massive. If you have $10M and need $100k to live on, a 50% downturn still leaves you plenty of room.

You don't need generational wealth, you just need a enough that the general "rule of thumb" is way more than you'd ever need to spend. That can be amassed in one generation.

[–] [email protected] 6 points 7 months ago

I was thinking that too. Works as long as asset appreciation > interest.

We're in a higher interest rate world with a recession on the horizon, so this strategy may not work moving forward