In this episode, we discuss what the Rule of 20 is in retirement planning and how it works.
This is a rule of thumb, which says that once you decide the level of retirement income you want, multiply it by 20 and that is the number of freehold assets you need to produce the income you want.
That means if you want to live on $100,000 a year, you'll need roughly $2,000,000 worth of assets to produce that level of income every year in perpetuity. That's based on your portfolio producing a 5% gross yield every year.
We also mention our property investor quiz. These 7-questions will give you an indication about whether you're in a position to invest and gives a full report based on your numbers.
