For many years, $10million invested in SAFE interest bearing instruments would earn about $400k/year. Not too shabby.
Now you earn about $24k per year, with the current policies. So you have to burn your capital also.
Things fall apart.
We saw this coming. While we have very healthy 401K balances and had always saved the max, and still do, we bought single family homes at rock bottom and rent them out $1500 per month.
A 60K house off a short sale returns $13,000 in gross yearly revenue. That’s around 20% return on my money vs a quarter of a point in the bank? I’ve bought six of them. All in my neighborhood and one next door. If Ted Kennedy can have a compound, so can I.