We're in our early 40s with $3 million mostly tied up in rental property - will we still be able to retire?

The article discusses the potential of real estate as a beneficial long-term investment, highlighting the importance of diversification. While a couple has successfully invested in rental properties, bringing in substantial income, they are advised to expand their investment portfolio beyond real estate to minimize risk. Given the illiquid nature of property and the unpredictability of market trends, adding stocks or ETFs to their financial strategy is recommended. It's essential for anyone involved in real estate investments to work closely with a financial advisor to ensure a balanced and secure approach to retirement planning.

If property values take a dive, the poster could lose a lot of their net worth in a real estate crash. And if the economy takes a turn for the worse, they may not be able to pull in $35,000 a year in rental income.

The couple in this post is in great shape. They have money in stocks and a 401(k) outside of their rental property. But because much of their wealth is tied up in a single property, I'd encourage them to branch out into other assets in the coming years.

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