One must gather enough passive income before retiring. One must think when young the various ways to support himself after he retires from his job. An average person gets hired in a job and works hard all his life depending upon the boss for raise and incentives.
He works for a particular company for 25 to 30 years and hence accumulates a good amount of pension.
Hence the significance is that he works for so many years to earn a passive income while they retire. They also open several investments and bonds to add to their money to live life nicely after they retire. However, this is the most risky way to live your whole life.
The best way to retire is to retire with a second source of recurring passive income of your own.
Real estate is a wonderful solution and a great idea to earn passive income even after you retire from your career. However, this requires a bit of a planning from a younger age. One can manage to buy 15 residential rental properties during the age of 25 or say 30.
If he is successful in doing so, and then at the age of 60 he will have all the collected mortgages for these rental properties which the tenants have paid. So all such rental earnings is the passive income which you can live on. If a person charges $1000 a month for rent then for all these 15 properties the amount adds upto $15,000. So, annually one earns $180,000 passive earnings. One can even charge more according to the market inflation rates. Hence this is a highly profitable way to plan your future.
Real estate can help you earn a lot of passive income while you retire. The more you earn in this way the more you can have comforts in your life. These must cover all your expenditures and also save you enough money to live the rest of your life.