Sure rental properties.
Hows that going to work when you can’t evict anyone ?
“The true benefits of direct real estate investing accrue once you’ve built a portfolio of properties that can provide significant positive monthly cash flow as a reliable source of income.”
If you are willing and able to manage a portfolio of properties then it is probably a good investment.
For the vast majority of people investing in a diverse portfolio of index funds in a 401(k) is more likely to be the best option.
Stay away from real estate unless you have a lot of it. In that case it’s a full time job so you won’t be retired ever. But if you are unlucky you might get to watch it burn in a riot.
Index funds have been very good to me. The only real estate I have money in is the house I own and live in, and while that’s also been good to me (so far - let’s see how bad Newsom can crater the CA housing market), I’ll stick with index funds for active investments.
Cash out of equities and put that $ on the sideline, with perhaps investing 10% in physical gold/silver. No way on rental properties until this C19 blows over. Real estate, IMO, is about to come down significantly.
How much do you want to take out in cash or equity during a down market twice in 10 years?
I know a guy who has a rental property in Philadelphia. He had the proverbial tenant from hell, and had to go to court to get rid of him. It took him months and the guy threatened him and vandalized his van. He lost thousands in unpaid rent.
Don’t even think about a rental property in a city.
Rental housing can be a 24 hour seven day a week occupation. Index is buy and forget.
Republicans own, Democrats rent. Dealing with many Democrats in retirement is not for the faint of heart.
Why does it have to be one OR the other? Diversify.
Investing is one area where “diversity” is indeed a strength.
How would this work during hyper inflation?
Any other suggestions for hyper inflation?
Match your investment strategy to your skills.
Being a property manager is a skill. You can pay someone else, if doing so leaves the net income where you want it.
If you have never been an active investor making your own investments at time of early retirement, it could be too late to acquire those skills for yourself. Instead, shop for a good investment house that is not going to rob you in fees and transaction churning costs. Be sure they clearly understand your goals, stated as degree of maintaining or growing capital and level of annual income desired. Make them explain clearly how the options they pick, or change to, will do that. When economic conditions are changing, discuss with them what if anything they are doing in response to that. Don’t be a totally silent investor. The more questions you ask, the more you will understand what they are doing. Be satisfied or change investment houses.
I have 20 residential rental properties, all rented and all tenants paying. Keys are, of course, location and renting only to good tenants.