Are you nearing 50?
Have you passed that marker already?
If so, you might be thinking about your retirement and whether you will have enough money to live well or if you might outlive your money. That’s a harsh reality for many people these days.
I recently found an article on Investopedia about the worries people have about their retirement years. Those who are retired say they are afraid of…
- Being taken advantage of by scammers
- Having affordable, high-quality health care
- Making their retirement nest egg last longer and work smarter
While I can’t speak to the first two worries with any authority, I can certainly take a moment to talk about how to create steady streams of cashflow to retire in greater style and in a way that will keep making your money work for you.
That said, you won’t be surprised to know that I created a video – the first in a short series – devoted to this topic. Take a look now. It’s short and won’t take much time out of your day!
Truth is that there are plenty of ways to create the income you need to live on in retirement. I’m not talking about just enough money to exist during your golden years, but rather enough money that keeps flowing in the door so you can do the things you really want to do… that you finally have time to do like travel and spend quality, stress-free time with family and friends.
Let’s talk about traveling now and later…
As you heard me say in my video above, I travel a lot.
Right now I do it for work every month, but I also get to travel to look at new properties I’ll be investing in or hope to close at any rate… and I get to travel with my beautiful wife and kids just for fun. (Yes, I feel very blessed to be able to say this.)
It would break my heart if I had to worry that I couldn’t look forward to doing this in my retirement years, too. However, a lot of people can’t travel in later life because they didn’t plan adequately. They didn’t put any money away or, if they did, they didn’t put that money to work for them to create passive income by investing in real estate. (You can use your retirement accounts to do that many times.)
I truly wish that more people could learn what I have and could do what I am doing in real estate investing. If they can’t do it actively as I am, that’s okay. They can take a more passive role and keep the cashflow rolling in anyway.
It really comes down to making a choice.
- Do you want to have enough money in the bank so you don’t have to count your pennies and cut corners in retirement, or…
- Do you want to be forced to count your pennies and cut corners just so you can live meagerly in retirement?
While that may sound a little harsh, I mean it as an eye-opener.
The earlier you can start planning for your retirement the better. If you wait till you’re 50 to start saving for it, well, that’s okay but a bit late in the game. It means you likely will get to keep working for another decade when your peers are ramping down their work life.
However, if you’re 25 and you start putting money away in your retirement account, you will have an opportunity to accumulate some substantial savings over time. If you start savings at 35, that’s fine, too. But just saving is not enough. I wrote an article about that recently. If you missed it, here’s a link:
In it I talk about the seasons of life and how my understanding of real estate investing and the returns it can bring changed over the decades. Here’s the basic truth that I learned…
What you do with the money in your retirement account matters!
In my humble opinion, it is not enough just to save, save, save.
When you have money put aside for your retirement, why not make it work for you to produce even more income. Better yet, why not put it to use to create flowing streams of ongoing income?
It is passive income that I’m talking about.
And, yes, you should look at doing it through real estate investing, because that’s the only way I know of to get to a very comfortable retirement.
In my video above, the backdrop is the gorgeous city of Charlotte, North Carolina. That’s where I’m looking to acquire my next large property. By “large” I am talking about a 50+ unit apartment building or multifamily dwelling! (Can you tell that I am very excited about this one?)
My team and I have identified a handful of candidates and we’re in negotiations at the time of this writing. I’ll let you know how it goes and which one we close on. I promise.
Once I get this property under contract I am well on my way to a much more secure retirement. To understand this statement just do a simple calculation.
Let’s just say that each door will cashflow $300. When you multiply that by 50 you get $15,000 U.S.
$300 X 50 doors = $15,000
$15,000 X 12 = $180,000 annually
This is just the cashflow, which means the money above and beyond the monthly expenses.
But I can’t get to the closing table alone. The good news is that I have investors who understand the benefit of working with me passively (letting me use their cash) in my deals. In return, they don’t have to lift a finger – much less a hammer or paintbrush – to reap the benefits of my owning the property. They understand that when they put their money into my deal, they will earn passive income month after month or on an agreed payout structure! They can also take a part of the depreciation and appreciation in the property. (There are many ways to slice a pie!)
If you’re new to reading this blog and want to understand that last bit of information better, please read this article:
There are a lot of good points and a different way of looking at investing in that piece.
If you have questions, I’d love to chat with you. Don’t worry. We won’t have a big, scary conversation. There’s no reason for me to be pushy with you ever. I just want to answer any questions you may have about investing in real estate or how we may be able to work together.
If that’s something you’re interested in learning more about, I have a special link for you to use. Just click this link.