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For decades, the 401(k) has been the gold standard of retirement planning in the U.S.—a slow-and-steady way to build wealth by investing in stocks, bonds, and mutual funds through your employer. But while that model has worked for millions, it’s also left a lot to be desired: limited control, unpredictable returns, and almost no cash flow until you’re well into your 60s. That’s why a new real estate investing platform backed by Jeff Bezos is turning heads—and quietly offering an alternative to the 401(k) that’s already helping thousands of people earn rental income today.
The platform is called Arrived, and it lets you invest in actual single-family rental homes across the U.S. starting at just $100. No mortgages. No landlord duties. No accreditation required. You earn passive rental income each quarter and share in the profits when properties are sold. And unlike a traditional retirement account, you don’t have to wait decades to see your returns. For a growing generation of investors looking for something more flexible, more tangible, and more immediate, Arrived is proving to be a powerful supplement—or even an alternative—to the 401(k).
Let’s be clear: the 401(k) has its place.
It’s helped millions of workers build long-term retirement savings, especially when employers offer contribution matches. But it also comes with real limitations. You typically can’t touch your money without penalties until you’re 59½. The investment options are limited to a handful of mutual funds or ETFs chosen by your plan administrator. And your returns are tied entirely to market performance, with no real diversification outside of equities and bonds.
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Even worse? There’s no income—at least not until retirement. Your 401(k) balance may grow over time, but it won’t help you earn passive income while you’re still working, freelancing, or building a business. For people who want more flexibility in their financial plan—and more control over their investment mix—that’s a problem.
Arrived is built on a simple idea: make rental real estate accessible to everyone, not just wealthy landlords or real estate pros. The platform identifies and acquires single-family homes across the U.S., then opens them up for fractional investment. You invest as little as $100 to buy shares of individual homes. Arrived handles everything else—finding tenants, collecting rent, managing repairs, and overseeing the property.
Each home is held in its own LLC, and investors earn quarterly cash payouts from rental income. When the home is eventually sold—typically after 5 to 7 years—you also receive your share of the profits if the property has appreciated. That means you’re not just betting on long-term value. You’re earning income in the near term too, with no need to wait decades to benefit.
Let’s talk numbers. One of the most important questions for anyone considering an alternative to a 401(k) is: how do the returns compare?
In Q4 of 2024, Arrived paid out $1.84 million in rental dividends across 365 operational homes, a 19% increase from the previous quarter. They reported a 92% stabilized occupancy rate, with 63% of new leases beating forecasted rents. These are real numbers from real homes—not paper returns on a spreadsheet.
Across the platform, Arrived properties generally offer targeted annual returns of 5.4% to 7.2%, combining both rental income and estimated long-term appreciation. That’s right in line with—or in some cases better than—the long-term average for 401(k) plans, which typically return 6–7% annually, depending on the market and asset allocation.
Here’s how they compare:
|
Investment Type
|
Average Annual Return
|
Liquidity
|
Cash Flow
|
Control
|
|
Arrived
|
5.4–7.2%
|
Low (5–7 year hold)
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Yes (Quarterly)
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High (pick each property)
|
|
401(k)
|
6–7%
|
Very Low (penalties before 59½)
|
No
|
Low (limited fund selection)
|
|
REITs
|
~7.6% (long-term avg)
|
High
|
Yes
|
None (you buy the fund)
|
It’s not that one option is “better”—it’s that Arrived gives you something the others don’t: a way to earn income now, not later, while building real ownership in real assets.
Arrived is especially attractive to millennials and Gen Z investors who aren’t sold on the idea of working 40 years and crossing their fingers that their 401(k) grows fast enough. Many don’t have access to employer matches. Some are self-employed. Others are renters in expensive cities where buying property feels like a pipe dream.
With Arrived, you don’t need to save for a down payment, apply for a mortgage, or commit to owning property in one city. You can spread your investments across dozens of homes in different markets and receive steady rental income while still living your life. Whether your goal is early retirement, supplemental income, or just better diversification, Arrived fits into the kind of flexible financial plans that more and more people are building today.
Arrived didn’t just show up out of nowhere.
It’s backed by Bezos Expeditions, the personal venture capital fund of Amazon founder Jeff Bezos. That investment—along with support from other top-tier investors—has allowed Arrived to scale quickly, vet properties rigorously, and build a platform that’s as clean and intuitive as any modern fintech app.
And the traction is real. Over 18,000 investors have used Arrived. Properties often sell out within minutes of going live, with minimum investments from $100. And the platform is expanding, with offerings that now include vacation rentals, private credit funds, and diversified real estate portfolios for those who want even broader exposure.
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This article This Bezos-Backed Real Estate Startup Is Quietly Disrupting the 401(k) originally appeared on Benzinga.com
