Wow, it’s been almost three months since my last cash flow retirement article. I have probably written 200 articles since then- time flies when you are writing. For this installment, we are going for big money, over $30,000 a month.
Back Story. Alex and Claire have been married for over 25 years. They are retiring when they hit 50 years old. Because they are leaving the workforce, they do not want to spend more than 3 hours a day each maintaining their passive income streams. They want to achieve $30,000/month when they start to receive social security and liquidate their 401Ks- this will be at age 67.
Methodology. We will use our Retirement 4-50 system to reach our couples’ goals. I also detail Retirement 4-50 in my Cash Flow series (101, 102, 103). In a nutshell, we will use retirement income, investment income, rental income, and business income to build a passive cash flow portfolio. For this scenario, we will assume they have both turned 67 years old. Now, let’s get to the good stuff.
Retirement Income. Alex and Claire both worked jobs until age 50. They both will receive social security benefits at age 67. Their combined 401Ks totaled $500,000 at age 50. When they start drawing from it at age 67, the total will be roughly $2.5 million. They also had Roth IRAs that they decided to convert into an income-producing annuity. Let’s see how their retirement income looks on paper.
| –Retirement Income– | –Time– | –Monthly Amount– |
| 401k | Passive | $8,333 |
| Social Security | Passive | $5,000 |
| Annuity | Passive | $1,000 |
| –Retirement Total– | 0 hr | $14,333 |
Investment Income. Our couple built a dividend portfolio over the last 20 years. Claire, in particular, enjoys trading options with some of her dividend-paying stocks. She earns a nice income from options trading. Their dividend portfolio is $1.8 million.
| –Investment Income– | –Time– | –Monthly Amount– |
| Dividend portfolio | Passive | $6,000 |
| Options Trading (Claire) | 2 hr | $1,000 |
| –Investment Total– | 2 hr | $7,000 |
Rental Income. Alex and Claire do not enjoy owning rental properties, but they have one paid-off property- their son and his family rent it. They also have twenty-five real estate notes from raw land they buy and sell via seller-financing. Alex enjoys bartering raw land, and that is his daily passion.
| –Rental Income– | –Time– | –Monthly Amount– |
| Four bedroom home rental | Passive | $2,500 |
| Raw Land Notes (Alex) | 2 hr | $2,500 |
| –Rental Total– | 2 hr | $5,000 |
Business. Alex writes books about his former career as a college professor and his current passion for raw land trading. He writes a little every day. Claire likes to shoot YouTube videos about her options trading. She produces two videos a week.
| –Business Income– | –Time– | –Monthly Amount– |
| Book Royalties (Alex) | 1 hr | $2,000 |
| Options Trading YouTube (Claire) | 1 hr | $1,667 |
| –Business Total– | 2 hr | $3,667 |
Totals. Does this retirement seem plausible? Let’s add everything up and take a quick look at Alex and Claire’s overall retirement lifestyle.
| –Income Type– | –Time– | –Monthly Amount– |
| Retirement Income | 0 hr | $14,333 |
| Investment Income | 2 hr | $7,000 |
| Rental Income | 2 hr | $5,000 |
| Business Income | 2 hr | $3,667 |
| –Total– | 6 hr | $30,000 |
Final thoughts. What a fantastic retirement that Alex and Claire created. $30,000/month and only working six hours a day total (three hours each). Retirement shows the power of cash flow and diversification. Claire is options trading and shooting YouTube videos; Alex is trading raw land and writing books. During their employment years, all of their hard work paid off via 401k, Roth IRAs, and a dividend portfolio.
If you can start planning your retirement early, you can do even better than our couple. You will have more royalty-producing content launched. You can more businesses established and automated. Also, you can increase rental income via commercial real estate or apartment buildings. The best thing you can do is start today.
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Disclosure: I am not a financial advisor or money manager, and any knowledge is given as guidance and not direct actionable investment advice. I am an Amazon Affiliate. Please research any investment vehicles that are being considered. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
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