“To know how large of a savings ‘nest-egg’ you’ll need, you’ll need to know three things: How long will you live? How will inflation increase? What will the various markets do? These answers are impossible to know. You are gambling with your future.
If you change your definition of ‘nest-egg’ to mean a pile of cash-flowing assets, rather than cash, your problem is solved.
By purchasing and saving cash-flowing assets, you could build a pipeline of cash flow for life-a pipeline that would produce cash in good times and bad, in market booms and market crashes. Your cash flow would increase automatically with inflation and, at the same time, allow you to pay less in taxes. These means your standard of living does not have to decrease, but can actually increase.
You can earn cash flow from real estate rentals, stocks via dividends, from bonds via interest, or from oil, books, and patents via royalties. In other words, there are many ways to stress free retirement freedom. All you have to do is change your definition of ‘nest-egg’ and you can survive at your current standard of living for as long as you live, whether you work or not. And you’ll leave infinite money for your loved ones, too.”