Why Your Nest Egg Is Bullsh*t

Scenario 1 - Dave 

Dave spent 35 years grinding away at a job that wasn’t exactly his dream, but it paid the bills. He wasn’t fulfilled and was often working 40+ hours per week, but he dealt with it. He did everything “right”—saved diligently, contributed to a 401k, and put his head down and worked. By the time he wrapped up his career, he was making $125,000 a year. Dave followed the typical advice: threw all his money into low-cost mutual funds and ETFs. Now, he’s sitting on $2 million in his 401k, ready to retire at the age of 60. But here’s the kicker—he’s still not sure if it’s enough considering he will likely live another 15-25 years. His financial advisor tells him, "You can 'safely' withdraw 3-4% a year, but just to be safe, maybe stick to 3%”.

So, let’s do the math: Dave’s before-tax cash flow for the year is going to be $60,000 (3% per year from his $2 million). Now, $60,000 isn’t exactly chump change, but let’s be real… he’s used to pulling in $125,000 a year so that’s a huge lifestyle shift. Another thing to consider, what’s that $60k actually based on? The future performance of stocks in his mutual funds that are 100% out of his control. No hard assets, no cash flow, just a lot of faith in the market.

Scenario 2 – Mike

Mike, a decade into his career, is already earning $80,000 annually and sees even greater potential ahead. Instead of relying solely on salary increases, Mike smartly invests in high-cash-flow assets, particularly through real estate syndications in multifamily properties. This strategy ensures steady quarterly cash flow, equity growth from appreciation, and tax benefits, all without the hassles of landlord duties. His annual cash flow hits a solid 10%, a fully attainable figure.

Alright, let’s fast forward. Mike works a full career, just like Dave and builds up a $2 million net worth. By the end, Mike is also making $125,000 per year. But there is a huge difference – he didn’t just blindly throw money into the stock market like everyone else. Nope, Mike went against the masses. He kept building his portfolio with all kinds investments that produce cash flow like real estate.

Again, let’s do the math: Mike’s annual cash flow from these investments is $200,000 (10% a year from the $2 million in cash-flowing assets), way more than he made from his salary. And remember, this is all on the same $2 million net worth. Plus, his investments are backed by hard assets, so he’s not gambling in the stock market like Dave. Mike is making 3x+ what Dave makes and stresses way less about it.

But here’s the thing – Mike is still young and he isn’t looking to grind away at a job for 3+ decades. He has bigger plans – traveling, hobbies, friends and family, things that actually matter. And let’s say he’s cool with living on $60,000 a year like Dave. Mike values free time and financial independence more than a fat paycheck. So, how much net worth does he need to pull in that $60k a year? With his 10% return… only $600,000. That’s it.

So, how much faster can Mike hit $600,000 compared to $2 million? I mean, this is just an example, but the answer is: way faster! Now, some might argue that $600,000 isn’t enough to retire on, but that’s missing the point. He could if he wanted to, because his passive income is solid. Mike’s got the freedom and financial independence that most people dream about. This is exactly why cash flow matters so much.

Oh one more thing… Let’s talk taxes for a second—because they matter a lot here.

Dave, who might use Roth IRAs or traditional accounts, faces contribution limits and eventual tax payments. Mike, on the other hand, benefits directly from real estate investments through tax advantages like depreciation and long-term capital gains, maximizing his income retention.

Ultimately, Mike’s strategy is more effective and achievable than it might seem. Many think this approach is out of reach, but often it’s just about gaining the right knowledge. We help investors transition from Dave to Mike, offering the benefits of real estate without the steep learning curve or landlord responsibilities.

So, is the traditional nest egg approach bullsh*t?

Whenever you're ready, there are 4 ways we can help you:

1.    Schedule A 1:1 Call With Me: If you are interested in learning more about how to passively invest in some of the best opportunities, let's connect. Schedule a call on my calendar and we can discuss potential opportunities that align with your specific goals.

2.    The Passive Investors Guide: Download your free copy of our investor's guide. Inside you'll learn how to turn your active income into passive income with strategic real estate investments based on your specific risk tolerance. This comprehensive guide will teach you how our investor's are earning ~ 20%+ annual returns with hands-off, multifamily real estate investments.

3.    Investing w/ Your 401k/IRA: Join hundreds of other investors who invest in lucrative real estate investments with their old 401k/IRA's. Our webinar teaches you exactly how to invest in cash-flowing real estate and stop settling for average returns that typical retirement accounts offer. Go ahead and watch the replay for actionable tips on how investors are earning 16-20%+.

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