Why Do Most Folks Invest In Real estate? No, Really
Posted @ 10:13 pm - Filed under Goals, Purposeful Planning, Real Estate Investing, Retirement, Retirement Income
It’s the human condition. We wanna live with financial security as our constant companion. This never so true as when we leave work for the last time. Retirement is one of those words that can simultaneously produce incredibly beautiful visuals in Steve, and abject terror for Marcia. Once thinks they’re pretty much on Easy Street with retirement, the other? She thinks it’s probably she’ll be working past 70.
Reality Check: The average American taxpayer reaching their late 50’s find themselves with way less than $100,000 in their retirement plan (usually a 401(k)), their own home with a loan of around 30-50% of its value, and social security. If they begin investing at 58, they can retire at least somewhat comfortably by the time they’re 70 — Lord willin’ and the creek don’t rise.
I love what the original Rockefeller replied when asked, “How much money is enough for the average guy?” He said, “Just a little bit more.” A wise answer from what I’ve seen.
Though creating wealth for use before retirement is always welcome, most of our clients come to us with the realization their retirement is destined to suck like a 400 horsepower Dyson.
When that visual dogs you for awhile you tend to become a fairly serious camper when it comes to creating a retirement worthy of giddy anticipation.
This week we’re gonna talk about some real nuts and bolts. Mainly, what should be the results after 15-30 years of Purposefully Planned real estate investment. One myth should be addressed here though.
If I hear one more time how retirees live on income less than what they were making on the job, and paying taxes at a lower rate, I’m gonna end up looking like Mount Pinatubo’s crater. It simply makes no sense for 80-90% of the real estate investors with whom I’ve worked since Carter was in office. It’s a silly premise at best, and a deadly perception of your retirement reality at worst.
If you invest in real estate for the next 15-30 years and can’t generate more income than the typical investor? Somethin’ ain’t right.
Take a $2 Million dollar equity and apply a very conservative 6.5% yield. In your lifetime, have you, or will you, make $130,000 a year? If the answer is no, you fall in the vast majority of investors. (Generally speaking, throwing out the low and the high, our clients earn $55,000 to $150,000.) If you answered yes, it’s more likely than not you started out with more capital and/or added capital along the way — which will of course result in a final net worth of far more than $2 Million. Investing for what amounts to a generation puts folks in positions they can’t fully get their heads around today.
Imagine 25 years of prudent investing. It’s not only possible, but almost predictable you’ll end up with $2-10 Million — depending upon the amount with which you laid your investment foundation. That’s BawldGuy Speak for — how much scratch you first invested. The bigger the foundation you set down, the bigger the retirement ’skyscraper’ you can build. The bigger the high rise, the bigger the retirement income. See? None of this is rocket science.
Folks invest to retire well. Yer not surprised, right?
This is the essence of what we do at Brown and Brown. We take you from where you are today to a magnificently abundant retirement — without ever leaving your side. This is what sets us apart. We’re with you from our first meeting ’till we’re leaving your retirement party — and you will invite us.
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Creating wealth for a seriously cool retirement is just a conversation away from beginning. The Contact BawldGuy thingy works. I’ve tested it. Make the decision to explore your own retirement potential.
This entry was posted on Monday, May 12th, 2008 at 10:13 pm and is filed under Goals, Purposeful Planning, Real Estate Investing, Retirement, Retirement Income. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
