Sample Scenario 008 – Investing $100,000 in Stocks at Fixed 8.97% per Year while Earning and Spending $5K per Month and Buy 10 Nomads™, Start Earning $2K/mo From Social Security in May, 2040

This is similar to Scenario 006 except in this Scenario we are adding in that you start collecting $2,000 per month (in today’s dollars) in May, 2040.

We buy a home to live in with 5% down payment and lender-paid private mortgage insurance (PMI) instead and then a year later we buy a second home to live in, again with 5% down payment and lender-paid PMI. We convert the first one to a rental property.

We repeat this process waiting at least a year between each purchase to comply with the owner-occupant lender requirement to live in the property for at least a year.

If we have less than $10,000 in reserves (inflation adjusted), we wait until we have at least $10,000 in reserves before buying our next property.

We call this strategy the Nomad™ investing strategy.

In May of 2040, we start to collect an extra $2,000 per month from social security. The $2,000 is adjusted up for inflation. We accomplish this by adding a new Paycheck and Personal Expenses rule. The Rule has an income of $2,000 (inflation adjusted) and no extra expenses. We still pay taxes on it at the same tax rate we’ve been using elsewhere. We only start this rule in May, 2040. Of course, you can modify any of these assumptions by copying this Scenario to your own account and change any of the assumptions.

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Copy Scenario into my Real Estate Financial Planner™ Software

SS 008 Investing $100,000 in Stocks at 8.97%/yr and Earning and Spending $5,000/mo and Buy 10 Nomad™ Properties, Social Security in May, 2040 with 2 Accounts, 1 Property, 3 Rules, 1 Goal

I will be adding to this page in a future revision, but wanted to get it posted for you now so you can start to use it in your own modeling.

Scenarios with Fixed Rate of Return on Stocks

More posts: Scenario With Fixed Stock Market Rate of Return

Scenarios Starting With $100K

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Scenarios With Income and Expenses

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Scenarios With Lender-Paid Private Mortgage Insurance

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Scenarios With Stocks and Real Estate

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Scenarios With Nomad™

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Scenarios With 10 Nomads™

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Scenarios With Social Security

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