How to retire early

Posted by on Nov 3, 2016 in Investment, real estate investing, Retirement | Comments Off on How to retire early

Want to know how to retire early? It depends on your investments…

This video breaks it down with a little math if you’re so inclined to get into details.

Simply put, retirement is about how much you can invest.

AND how that investment pays you, if you make enough to live off of, then you can retire.

For example, if you save (and invest) 10% of your income, it will take probably over 50 years to retire.

Likewise, if you save 100% and are living off of something else now (i.e. your investments) you can retire now.

So let’s look at 3 examples.

Bob makes $100,000 a year, saves 10% ($10k/year) and that earns him 5% returns (i.e. $500/year). After 50 years, with half a million in the bank, a 5% return would give you $2,500 yearly to live on which means you’ll most likely have to start eating away at your investment (making you less each time).

Now if Bob saved half of his money, he’d have $2,500,000 in the bank, earning him 125,000 per year at 5% interest/ROI, which he could EASILY live off of.

Most of us are probably somewhere inbetween. Know your goal. Let’s say it’s $1MM and you have investments that pay you 10% (like the real estate deals I setup for people all the time). This allows you to live very comfortably and (this is the biggie) WITHOUT having to eat away at your savings, like in the first example above. You don’t want to do that because you don’t know how long you will live as we are tending to live longer as time goes by and we become more and more aware about how stress, diet and exercise affect us.

Another key benefit of NOT eating away your nest egg (aside from not outliving it) is that you want to be able to live entirely off of your investment, but still have it to pass on to your kids. Then they can live off of what you built and pass it down over and over, all the while with (hopefully) your investment going up and up and up, making you more and more to combat inflation.

I hope this sounds interesting to you, it’s fascinating stuff to me which is why I made finding high return, low investment (rental) properties my main interest because of their source of income without losing value.

If you’d like to chat further please don’t hesitate to contact me. We can go over what your goals are and find something that works for you, your plans and your budget.

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Planning for retirement?

Posted by on Sep 12, 2016 in Investment, real estate investing, Retirement | Comments Off on Planning for retirement?

Are you planning for retirement? Here’s what you need to know.

retirementFirst off, as obvious as it may seem, let’s decide on WHEN you’d like to retire. Mainly, at what age would you like to be when you retire? 65? 55? 75? 35? …you need to first know this because we’re going to work backwards from here. The next questions is naturally, how old are you now? After this, subtract. So for example if you want to retire at 65, and you’re 35 now, you have 30 years to meet your goals.

Second, is how much would you like to have upon retirement? Do you want to have 1 million in the bank? 2 million? And don’t pick a random number, really try and figure out what your lifestyle will be like. To decide, look at your habits now. How much do you spend? You’re likely to keep spending that much. Hopefully you won’t have a mortgage anymore at that point, so you can subtract that amount from what is needed for your monthly living requirements. So if you spend $6k/month now, and half of that is your house payment, you’re essentially living off of $3k/month. Then figure out a reasonable estimate for life expectancy. 85 years old? It could be longer nowadays if you’re living healthy so keep that in mind because you don’t want to run out of money. 20 years at 12 months each is 240 months, at $2k/month would be a needed $720,000. If you live to 95 make that $1,080,000.

What about cost of living increases? Or better yet, do you plan on eating away at your nest egg? That probably isn’t the best idea. With a fixed amount it gets lower and lower each year, giving you less and less to live off of. What I like is owning something that produces income. So if I had rental properties worth a million dollars (so let’s say 10 of them), and each one gave me $1,000/month, that gives me a million in the properties that I never have to touch, because I live off of my rental income ($10k/month, which is well in excess of my needs).

There are a lot of things you can do, IF YOU PLAN AHEAD. Run these numbers for yourself, see how you stack up. How old are you now? When do you want to retire? What do you spend now? What will you spend then (with inflation adjusted)? How are you going to get there? If you need help I’m happy to help you find properties to get you there or even come up with an alternative plan. The point is to have a plan because the VAST majority of retirees today are living below poverty. You do not want to be a burden on your family or loved ones. instead, create a great income producing nest egg that you can pass on to your family when you pass and leave you living comfortably until then.


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Stocks or Real Estate?

Posted by on Aug 14, 2016 in real estate investing, Retirement, stock market investing | Comments Off on Stocks or Real Estate?

Trying to decide on investing in the stock market versus real estate?

Let us help you decide because it can make a big difference on what you choose to do.

First, let’s look at the stock market. Research shows an average of 6.X% increase in stock market value over a 100 year period. Now that’s not to say you can’t have higher gains, IF you find the right 10 year period you could hit 14% let’s say, even with a drop, but the trick is knowing when to get in and get out. Hindsight is great for this, but by then it’s too late.

Knowing the right time (which is not easy) is why the stock market is known mainly as a “young man’s game” because you are able to take the hits, the losses and move on, to hopefully win out in the long run. What do they say to do in old age? Go for the more stable, lower return, investments.

So how does that compare to real estate? Well, this video makes a great case, basically because owning a home FORCES you to save, whereas if you don’t own, you won’t always invest how much you would be putting into a home. One item of note though is that when things fluctuate, your results will wildly vary.

But… can you get a standard double digit rate of return with real estate? Find out below the video…

Ok, now that you’ve watched that, here’s what we feel is the most important part of the puzzle.

With stocks, once you retire you have to start eating away at your portfolio, which means there’s less and less to offer a return, until you drain it dry.

With real estate, IF you find a nice double-digit ROI property (we find them daily), and you reinvest to buy more, that compounding adds up to potentially twice as much as the stock market would.

BUT, once you retire you do NOT have to start eating away at your investments.

NOTE: this is for rental properties only. With a portfolio of rental properties the strategy is not to start selling off your homes, but to live off of the rental income which can support you very comfortably with enough of them. Then you use your actual homes to pass on to your kids, letting them live off of the rental income and wait until the market is prime for selling.


Please contact us because we’d love to help you find a strategy that works best for you.

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