Okay, so yesterday I confessed that I probably won't be expanding my real estate empire. The next question is, what will I do to support myself?
First, I will continue to pay off debt. Excess cash will go towards the mortgages on my rental properties. Then, I will deploy excess cash into maintenance-free investing: think stocks or even index funds. This is not something that will happen in the short term. It's a major shift, and I am not in a hurry to shed profitable assets. Divestiture will happen when opportunity presents itself. When I meet an overly optimistic market, I will offer my assets to that market.
My goal is to smoothly transition to a maintenance-free portfolio that produces enough income to fund "life". I would like to think that I can accomplish this in 10 years, but I am not foolish enough to think I can define a parameter just yet.
My next goal is to invest $400,000 in relatively secure equities that consistently yield 7-10% per year. If we are debt-free, having $28,000-$40,000 per year is more than we need. It would mean that we can live off what we need and reinvest the excess. Don't get me wrong - I can't "stop" accumulating wealth and coast the rest of the way. $400K still makes me nervous. But it is enough to give me the cushion I need to stop worrying about our day-to-day needs.