The US census of 1990, 2000 and 2010 all show that 90% of Americans retire at or below poverty income levels. Why is this you ask? It is because there is only 1 way to retire that is to have social security, a passive income stream (like a pension) and personal savings. What companies have done is eliminated pensions so we are retiring on only the social security and whatever we have in our 401k account. You have $101,000 or so in your 401k. I know that because Vanguard recently reported the average 401k balance at year-end 2013 was only $101,650. If this is the average then some are more and some or less. But a realistic view of what that means is that a whole lot of us are below that figure. Nobody can retire on $100,000.
The typical investment advisor will tell you how to diversify your portfolio. They will tell you to grow your nest egg. But growing a large pile of money never retires anybody. The pile can’t ever be large enough for you to retire. What stops you from retiring is that at the end of every month a bill comes in. That bill could be rent, car note, or food. Since you like eating you need income to pay that bill. What retires you is not piles of money but income…passive income. A pension is income and they took those away. So what you need to do is replace the income lost when pensions were taken away. That is what real estate will do for you.