1459: Six Percent is the New Four Percent by Paula Pant of Afford Anything on Safe Withdrawal Rate

Optimal Finance Daily - Financial Independence and Money Advice

Optimal Living Daily LLC

Investing, Business, Education, Self-improvement

4.4 • 1.3K Ratings

🗓️ 8 March 2021

⏱️ 11 minutes

🔗️ Recording | iTunes | RSS

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Summary

Paula Pant of Afford Anything explains why six percent is the new four percent. Episode 1459: Six Percent is the New Four Percent by Paula Pant of Afford Anything on Safe Withdrawal Rate Paula Pant is the founder of the award-winning website AffordAnything.com and a writer and speaker specializing in money, business, and real estate investing. She is a real estate investor, as the owner of seven rental property units in metropolitan Atlanta. She holds a real estate license in Georgia. She's also the host of the Afford Anything podcast. The original post is located here: https://affordanything.com/six-percent-is-the-new-four-percent/ Visit Me Online at OLDPodcast.com Interested in advertising on the show? https://www.advertisecast.com/OptimalFinanceDaily Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	This is Optimal Finance Daily, episode 1459.
0:04.0	6% is the new 4% by Paula Pant of a FordAnything.com
0:09.8	and I'm your host and personal finance enthusiast, Diana Mariam.
0:14.1	This is the show where I read to you from some of the best personal finance blogs on the planet,
0:18.4	sometimes a little too enthusiastically.
0:21.0	But I can't help it, money is an incredible resource that we can use to craft the life of our dreams.
0:26.7	So thanks for joining me today and every day.
0:30.0	Before we get to it, have you subscribed to our other podcasts?
0:33.4	We cover personal development and minimalism, health relationships, entrepreneurship,
0:38.4	and life advice on the other shows.
0:40.6	Just search for Optimal Living Daily wherever you get your podcasts to find them.
0:44.8	But since you're here, let's get right to today's post and start optimizing your life.
0:53.6	6% is the new 4% by Paula Pant of a FordAnything.com
1:00.2	Today's article is extra nerdy.
1:02.8	Pull on your Coke bottle glasses and let's run through a little bit of math.
1:06.8	Ready? Let's go.
1:09.0	If you're retiring on index funds, you might plan your retirement on the 4% with drawl rule.
1:15.1	But if you're retiring on rental properties, you could use the equivalent to a 6% with drawl rule.
1:21.3	This holds true even if total returns on the two investments are the same.
1:26.0	Why? Two reasons.
1:28.2	Number one, the returns on a rental property bias towards an income stream rather than capital
1:34.1	appreciation. And number two, rental properties don't hold the same risk of withdrawing the principal.
	...

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