Posted on July 1, 2008 @ 9:07 pm - Written by BawldGuy
You and I are having a relaxed conversation. You’ve been thinkin’ of contacting me for quite awhile, and finally took the plunge. You’re now pondering the answer to my first question — What do you want your retirement to look like? As surprising as it may be, that question is a poser for lots of folks.
Try not to primarily think in terms of retirement income. Think lifestyle. How much of a traveler do ya wanna be? Wanna be a globe trotter, or are you more a see the grandkids type? What about how you’ll be traveling? Gonna be an ocean goer? Maybe you’ll be staying in the contiguous 48 and takin’ long trips in the cool RV — maybe a $400,000 RV? Hey, it’s your retirement, what do you want? You and I will make it happen. Our #1 weapons? Your vision and my Purposeful Plan.
See what I mean? It’s one thing to randomly think or even talk about your retirement, but try to answer the question concretely and it becomes a different tale altogether. Read the rest of this entry »
Posted on June 17, 2008 @ 10:06 pm - Written by BawldGuy
Let’s take a peek at what a shiny new real estate investor faces when entering this market. We’ll use a composite Brown and Brown client made up of several clients who’ve come on board this year. They’re early 40’s with two kids. (She’s 39, sorry.) They make $150,000/year between them. They own a home with a loan at around 70% loan to value. The investment capital available to them is $125,000 not including their cash reserves. They credit is very good, with both scores in the mid-700’s.
First we need to hear them say they wanna be our clients. We don’t make a big deal about it, we just need to hear the words. Once spoken we shift into gear and our V-12 power plant begins its throaty hum. Ever heard a V-12 idling? It’s been described by some as a small airplane. Very cool.
Here’s the chronology
1. A frank discussion is had between the us and the client. How old are they? Salary? Savings? Other assets? Credit? Retirement goals? The list goes on for awhile. The agenda is to establish a Purposeful Plan based upon the answers to these questions. This Plan is the foundation for our first moves on our client’s behalf. It’s importance can’t be under valued. Read the rest of this entry »
Posted on June 9, 2008 @ 11:35 pm - Written by BawldGuy
Throwing out the low and high ends of the scale, the typical Brown and Brown client is easily described as Regular Folk. Sure we get the low end newbie, able to begin minimally, and the ones with several hundred grand to start plus equities in umpty ump properties to trade. But 70-80% of our clients begin with $50-100,000 on up to around $300,000 give or take a few bucks. And they’re all regular folks just like you and me.
They’re usually married, but not always — a sizable minority are not. They make $45-150,000 a year, sometimes more, rarely less. They fall into the 42-55 age bracket, although those younger and older than that range are well represented. They’re all old enough to realize their future shouldn’t rely in any way, shape, or form on a toss of the dice. Duh.
Almost all own a home, and almost all with a mortgage. Though most have a retirement plan at work, usually a 401(k), rarely is there more than $30-90,000 in them. This fact alone is what gets so many to begin thinking more seriously about the retirement. Contemplating living post-retirement on the income generated by a couple hundred grand isn’t exactly the catalyst leading to a good night’s sleep, know what I mean, Verne? Read the rest of this entry »
Posted on June 8, 2008 @ 7:39 pm - Written by BawldGuy
Here’s something on which to ponder.
If you started today, how well could you retire in 10, 20, 30 years?
What lifestyle will you enjoy?
Will income be a curse or a blessing?
Will the taxman be a problem, or a memory?
How old will you be?
Will you own a second home for those bad weather months?
Will your income be tax sheltered and/or tax free?
Will your Social Security check be your monthly walkin’ around cash?
The answers to these few basic questions will determine the actions you take today. Actions taken while adhering to a solid Plan behave like positive financial dominoes, falling against each other, one at a time, heading for the preordained result — a magnificently abundant retirement.
Are you already investing for the Purpose of improving your retirement? How’s it workin’ so far? Those mutual funds providing visions of world cruises? Don’t answer — it’s a rhetorical question.
Already a real estate investor? Have you been doing as well as you expected? Know folks doing better? Read the rest of this entry »
Posted on June 2, 2008 @ 11:56 pm - Written by BawldGuy
I was asked an excellent question over the weekend. It forced me to pause awhile before answering. It wasn’t that the answer wasn’t coming to me, it was how to frame it. The questioner was gonna hear an answer they didn’t necessarily bargain for, and how it was presented was important to me. I didn’t wish to offend or cause hurt feelings. The question?
“In your opinion, what is the most common hindrance to the real estate investor’s chance for long term success?”
Seems innocent enough, doesn’t it? Not by a long shot. Understanding the answer is critical to discerning why one investor seems to do better than another. It’s too late, at least much of the time, once the rubber has hit the road. Understanding the answer to this question is one of the keys to attaining the retirement for which you’ve worked so hard.
The real estate investors with whom I speak daily, answer this question themselves. In their own words they remark on something I said, maybe even as a throwaway thought.
The Answer Read the rest of this entry »