Is rental real estate a safer type of “yield shield”?

Hack Your Wealth - A podcast by Andrew Chen

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#70: Last time, we talked about the pros and cons of the “yield shield” and the impassioned views on both sides of that debate.But what if you sidestep that entirely and generate your dividend yield through rental real estate instead?Unlike stock dividends, which can be cut by company management, rents are arguably way more stable. Plus, real estate can be leveraged with a mortgage to juice a higher capital return.Separately, regardless of which strategy you use, how should retirees think about the “crossover” point beyond which sequence risk effectively disappears?This week, in the final part of our 3-part series on asset allocation, we talk again with Karsten Jeske, CFA, about both these topics.We discuss:How rental real estate can change your optimal asset allocationWhether a bond tent strategy is still relevant if you have rental real estateHow to analyze the sequence risk crossover point after which you are guaranteed to outlive your savingsHow to visualize the relationship between “how much nest egg is left” vs. “how much retirement is left,” and how to know when you’re really “out of the woods”Check it out here:https://hackyourwealth.com/sequence-risk-analysisDo you think rental real estate is a more effective “yield shield” vs. dividend stocks? Would you change your asset allocation with rental real estate? How will you know when you’ve crossed the sequence risk “crossover” point?Let me know by leaving a comment!Don't miss an episode, hit that subscribe button...If you liked this episode, be sure to subscribe so you don’t miss any upcoming episodes!Apple PodcastsOvercastSpotifyStitcherI need your help, please leave a listener review :)If you liked this episode, would you please leave a quick review on Apple Podcasts? It’d mean the world to me and your review also helps others find my podcast, too!Links mentioned in this episode:ERN's "When Can We Stop Worrying about Sequence Risk?"Asset allocation: Does the “yield shield” really protect against sequence of returns risk? (HYW069)Asset allocation: How to use a bond tent to reduce sequence of returns risk (HYW068)The shockingly un-simple math behind retirement safe withdrawal rates (Part 1) (HYW035)The shockingly un-simple math behind retirement safe withdrawal rates (Part 2) (HYW036)Schedule a private 1:1 consultation with meHYW private Facebook community  Intro/Outro: Old Bossa by Twin Musicom.