Hey guys retired at 40 I’m going on a little road trip today just me and Murph and last week I reached a milestone on my channel and I hit a million views total and 10,000 subscribers in the same week since I’ve been getting requests for quite a long time about how I retired at 40 and I’m on a long road trip right now I figured what better time to share the story so without further ado here’s the retired at 40 story so before I get started I want to say that this is not in any way a brag story in fact I’m definitely not a showy type guy I enjoy very simple things in life and money to me is more of just a vehicle to be able to retire young and have my family live a comfortable and an easy life and to be able to enjoy lots of life experiences and be comfortable in life before I’m old and gray so really the journey began in about 2002 graduated from Iowa State University with a degree in marketing and business and by that point I have met my wife Kelly she had already graduated from school and she was kind of waiting for me and we wanted to move west out of the Midwest to move west see some new territory and get closer to the outdoors so I grabbed my degree ran out the door packed up my 1987 Ranger fully equipped with eight foot hay racks full of all of my personal belongings and we drove to Littleton Colorado and at this point in my life I had $200 in my pocket and Kelly had about the same so being completely naive and basically completely broke but with a degree I was on the search for the best suit and tie job that I could possibly find so I bounced around for a couple months just working some kind of halfway jobs and I quickly realized that I did not want to wear a suit and tie and I wanted nothing to do with the man and working a nine-to-five job well Kelly had found a job in a real estate office working the front desk and she had become friends with a couple of the big-time Realtors there one of which you caught wind that I had some handyman type skills but he made me a deal that if he paid cash for a house and I fixed it up that he would split the profit with us 50/50 and at this point in my life all I saw was dollar signs if I was completely blown away that there was someone that could pay cash for a house this is coming from a guy who had less than $200 in his pocket at this point it was pretty much scraping by I tried to hold back my excitement to him but naturally I said yes please let’s do that I was working the graveyard shift at Target stocking shelves I’d worked for 10 hours I would go home grab a little bit of breakfast and I’d head over to the property and work on it for another five or six hours I try and catch a few hours of sleep and then I would rinse and repeat it was at this point in my life that I learned a few different things one you really have to dig deep to reach your goals in life because I was not getting paid by the hour and at this point I didn’t know how much money I was gonna make I didn’t know if I would make $500 when this was all done or if I was going to make $5,000 when this is all done so I learned that a lot of things that can benefit you financially you have to put in the work upfront without knowing what your final outcome is going to be after about three months which seemed like an eternity of working seven days a week for sometimes 15 sometimes 20 hours a day on this house the house was ready to go on the market and it was all finished it looked great and then before you knew it it’s sold and then the house closed and at this point I still didn’t know what we were gonna make off it but for me it didn’t matter the hard part was done I didn’t have any of my own money into it I just had my time basically so the guy we were doing the investment with hands me an envelope and I opened it up and at $8,000 being twenty-two years old and having $8,000 I might as well have hit the lottery and that brings me to my second valuable lesson that I learned and that is being responsible with money so when you have $8,000 and you’re 22 years old a lot of people would go buy a new car they’d go buy some flashy things some pretty things but to me I had realized that if I can make $8,000 once I can make $8,000 again and again and again and again so I can either go p*&% the $8,000 away that I had worked my a#* off for or I can take that $8,000 and do exactly what he did but do it myself and potentially make twice or three times as much money so my wife being in a real estate office we became acquainted with quite a few smart people financially smart people we learned a lot about real estate very quickly because we were willing to learn which is my next valuable life lesson is that you never stop learning so we took our $8,000 we put a small down payment on a condo in Littleton because we realized that giving someone else our money was you might as well be throwing it away we wanted to be working towards something and it own something on our own so we took our other four or five thousand dollars and we started our search for a real estate investment that we could do all of our all on her own and get a hundred percent of the profits so after some searching we did find a place we found a small town home it was not in as nice of area as we were living it was smaller it needed lots of work but that takes us to our next light life lesson that we learned and that is to sacrifice for a greater payoff in the future so we had only lived in our condo for a very short time but we realized that if we moved into the real estate investment that we could rent out the place that we are living at and move into the place that we were fixing up that we’d have to be paying a mortgage on anyway we had our first real estate investment and we had our first rental so being 22 years old and owning two properties and carrying two mortgages and at this point I’m still working at Target was a pretty scary proposition in life but all I could see was that $8,000 check they had started to change our lives I also want to point out and kind of give a shout-out to my parents and to my wife’s parents because neither one of our parents ever handed us anything in life they always made us work for what we achieved in fact when we move we tried to convince my parents to co-sign on our mortgage for the condo that we bought and they said no way at the time I was very very mad at them and I thought I would never forgive them in hindsight it was one of the best things they’ve ever done for me because it just made me have that fire in my belly and really just want to work to get what I wanted so back to having two mortgages that was a completely scary thing in my life I was making something like 10 dollars an hour at Target I think Kelly was making $13 an hour at the real estate office she was working at we could barely afford the condo we had but now he had two.
God bless the banks lending money to anyone at that point on the very plus side of that we learned that someone else can pay our mortgage and we’re basically getting that money for free and then later we figured out that there are many many many tax benefits and huge benefits of owning a rental property so we quickly learned that trying to pay for materials and the things needed to fix up an investment property on just barely over minimum wage is not easy to do the thing that happened next couldn’t have come at a more perfect time so all of a sudden I had money to spend to fix up this house and it would just get me to that next big paycheck that much quicker so that’s what we did we fixed up the house we doubled our money we rolled it into the next one so we kept bouncing from house to house quite a few times and that sacrifice of from going from a nice house to live in to going to a crappy house to live in to fix up to making it nice again to going to another crappy house to fix up it became pretty stressful but we always had our eyes on the prize “are you still with me Murph?” after doing this two or three times I remember getting a check for the last one and the check was forty one thousand dollars so at that point it didn’t make sense to work at Target anymore so I just started doing it full-time but we never took the big proceeds from the real estate and put it into our actual living we always rolled it into the next property and that kind of gave us the baseline of even how we live today we always live well below our means we take the money that we make and we put it into things that will make us an income not into something that will lose us money but you do have to treat yourself every once in a while otherwise there’s no reason to make the money in the first place Kelly saw many of the high producing Realtors making large amounts of money so she decided to get a real estate license and she created her own real estate business so now we really felt like we had the world by the balls because we were getting paid a commission to buy the property and then we were saving half of the Commission when we sold the property and I was fixing him up so we just get rolling our profits in rolling our profits in rolling our profits in until family we were able to buy a house and now that we could get a house we were playing with the big boys the profits were much larger but so was the risk and we really didn’t want to lose all the way it worked for for the last couple of years so we did a few houses and we made some great money but instead of selling them and pulling out our profits we kept them as rentals and it was at this point that we really started building up our rental inventory at this point it was about 2006 or 2007 and real estate was starting to slow down a little bit but we have purchased a large house I’m a courage that was really a big risk for us it was a large house to fix up it was our biggest project for sure it took us the most money to fix it up and we had the most money into it so we lived in this house for about 8 months while we were fixing it up and we kind of decided after doing about 12 properties that the moving all the time was starting to get kind of old and we were kind of getting older ourselves and we decided that we wanted to have kids and kind of settle down a little bit Murph are you with me? sometimes I feel like I’m just talking to myself so after the eight months was up we finished the house we sold it and shortly after the real estate market completely crashed the bubble had burst and Colorado was one of the hardest hit States we got out of the house just in the nick of time and not only did the real-estate market bubble burst we found out that we couldn’t have kids and it seemed like a real low point in our lives but around 2007 when all this happened we realized our next lesson with every negative there is a big positive that can be gained from it and you can just use it as fuel for your fire so the recession was tough we thought our great life had come to an end we thought we were gonna have to get regular jobs you know people were losing their jobs left and right people were losing their houses Colorado was hit very very hard one of the worst states during the recession and we learned that what goes up must come down and in this case it came down hard in many cases not just real estate when things are bad that’s the time to invest and if you’re smart with your money and you’ve been saving while everyone else spending that’s the time to benefit though from about 2008 to 2012 we were buying rentals so we were able to adapt I started doing contracting because that’s pretty much what I was doing before but now I had to be doing work for someone else and Kelly’s always been a mover and a shaker and even a bad real estate market she was able to keep her business moving we were buying things for pennies on a dollar and even though we were not making great money and in some cases losing a little bit of money on rentals we were able to stick it out and after lots of lots of years of lots of lots of heartache and lots of lots of doctors we were able to have two boys so about 2014/2015 real estate started creeping back up again prices kept going through the roof and just when he thought it was the peak they just kept going up stuff was flying off the shelves you could list a house and it would have multiple offers within 24 hours so we had about age 35 we were completely debt-free we had several rentals that we were cash flowing we didn’t owe any money on the rentals so all that money was just rolling into a bank account when you have no bills and you have an income coming in your net worth starts to grow very quickly so we rode out the storm Kelly’s business was doing great my contracting business was doing great we have liquidated a lot of our real estate in Colorado we had capital to play with we had two beautiful young boys and then I fell to my knees crying like a little baby I had herniated a disc in my back and I was on a walker for about a month contracting for me was out of the question I didn’t even want to think about picking something up so I took some time off and I raised our kids which at first I thought would just be for a few months and then a year passed and then another year passed and I decided that I kind of liked it we had rental income coming in Kelley’s business was doing better than it had ever been in fact she had started her own she had several people working for her and just as a little side income I got to do what I love to do which is antiques I was just buying and selling antiques so we were trying to be very strategic at this point because we owned a fair amount of property in Colorado but we knew that our ultimate goal was to retire at 40 and at the rate things were going up we didn’t want to sell too early because we didn’t want to miss out on that upside but we didn’t want to sell too late because we didn’t want to risk the chance of taking a step back so as some regret we sold the majority of our properties in around 2017 but this was a game-changer because we were able to make cash for every rental that we purchased so we loaded up on rentals in Iowa we actually purchased our property that we’re going to move into which is actually where I’m headed now and that kind of brings us up to speed to current date I take care of our 10 rentals which keep which keeps me pretty busy just in itself i buy and sell antiques i get to see my kids all the time we have a good rental income coming in now we do youtube oh yeah we also do a couple fix and flips every year Kelly has her real estate team with about 10 employees and in June of 2020 we’re going to retire at 40 so all in all life is great I have a wonderful family I have enough assets and passive income to live a comfortable life
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– Are you looking forward to retirement? Of course you are. Check out our top 10 tips to make sure you’re on track. The sooner you get started, the more likely you’ll have a happy and healthy retirement. Tip one is take stock. How do you want to live in retirement? Do you want to move to a new area? Do you want to do a bit of travel? How much is it going to cost? How much do you have saved? Are you on track? If not, what are you
going to do to get there? Tip two. Plan for the rest of your life. Most people are in retirement
longer than they expect. While your health and family history will influence the length of your life, most people are living longer. In fact, you could easily
live into your 90s. Plan for the long term and don’t forget that you may need extra
assistance as you get older. Tip three. Review your investments. For your savings to last
the rest of your life you need to have the right mix of growth and defensive assets and you also need to have something to bring in an income and also a bit of growth. Diversifying your assets across cash, fixed interest, shares and property can help smooth the returns. Tip four. Stick to your plan. Investments can quickly change in value and while it’s tempting
to sell out of shares when markets go south, this is often the worst
thing that you can do. It’s important to remain
focused on the long-term as they usually recover
if given a long enough period of time. Tip five. Get the structure right. By changing the way you own investments and the way you receive the income can reduce the amount of tax you pay and also increase the
amount of age pension or DVA pension you receive. Even if you aren’t
entitled to an age pension, you may be eligible for discounts which can save money over the long term. Tip six. Get your affairs in order. Estate planning allows you
to pass on the right assets to the right people at the right time. Unfortunately we are all going
to pass away at some point. The first step in a good estate plan is by getting a will. You should also speak with your solicitor about enduring power of attorney and advanced medical directive. And remember to review your estate plan every few years as
circumstances change over time. Tip seven. Stay fit and healthy. If you stay physically and mentally active you’re more likely to enjoy
a longer, healthier life. Take up a hobby, learn a new skill or maybe volunteer in the community. Tip eight. Rethink the move. Some retirees move to a new location that they’ve always wanted to retire in and it hasn’t measured
up to what they expected. If this is something you want to do, perhaps move there
temporarily just to make sure it lives up to your expectations. Tip three. Review your investments. For your savings to last
the rest of your life, you need to have the right mix of growth and defensive assets and you
also need to have something to bring in an income
and also a bit of growth. Diversifying your assets across cash, fixed interest, shares
and property can help smooth the returns. Tip four. Stick to your plan. Investments can quickly change in value and while it’s tempting
to sell out of shares when markets go south, this is often the worst
thing that you can do. It’s important to remain
focused on the long-term as they usually recover
if given a long enough period of time. Tip five. Get the structure right. By changing the way you own investments and the way you receive income, you can reduce the amount of tax you pay and also increase the
amount of age pension or DVA pension you receive. Even if you aren’t
entitled to an age pension, you may be eligible for discount. (upbeat music)
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Becoming a millionaire and being able to live the life you want is a dream for most, and achieving this by the age of 30 can seem like a wild fantasy. While everyone has a different journey, and there are no guarantees in life, utilising these tips will go a long way to helping you crack those seven figures. #1 Ditch the steady pay check Wealthy people are typically self-employed and determine the size of their own pay check. It’s not that there aren’t superstars who punch a time clock, but for most it’s the slowest path to wealth, promoted as the safest.
The great successes know that self-employment is the fastest road to wealth. While the elite continue starting businesses and building fortunes, average people settle for steady pay checks and miss out on the opportunity to accumulate great wealth. The masses almost guarantee themselves a life of financial mediocrity by staying in a job with a modest salary and yearly pay rises. #2 Don’t show off – show up! True success and wealth isn’t represented by your latest gold watch or fancy sports car – especially if it’s leased or put you in debt. These things may create a superficial image that makes you feel good about yourself, but time will erode this when debt eats into your wealth, and you cannot sustain the lifestyle you’ve tried to adopt too early. Many a millionaire have stated they’ve been driving an old rust box well past their first million, but have upgraded when they can pay cash. Be known for your work ethic, not the trinkets you buy! Show up, work hard, and be known for what you achieve…the money will follow. #3 Money doesn’t sleep Money doesn’t know about clocks, schedules, holidays, and you shouldn’t either.
Money loves people that have a great work ethic. If you want real success and wealth, you’re going to have to make sacrifices like foregoing some social events and putting in the hours. With the ability to utilise the internet for marketing and making money, time zones and geographic locations are no longer an issue for entrepreneurs with a dream anywhere. #4 Avoid debt that doesn’t pay you This is a shift in mindset in how you think about money and whether you buy luxury toys or utilise money to make money. Make it a rule to never use debt that won’t make you money. The wealthy use debt to leverage investments and grow their income streams.
Poor people use debt to buy things that make rich people richer! Get your money to do the heavy lifting for you. Investing is the ultimate road to becoming a millionaire and beyond! You should make more money off your investments than your work. Many successful entrepreneurs outlay thousands in cash to get their start-ups off the ground, and report making that money back each and every month for many years. Investing is the only reason to follow any of the other steps, and make your money work for you, rather than you working for your money. #5 Focus on money & make it a priority While it sounds superficial, it is a harsh reality.
To get rich and stay rich, you will have to make money a priority. Ignore it, and it will ignore you. Rarely can you just focus elsewhere and hope the money will find you, as you need to be making decisions based on what is most beneficial to your business or situation. Without focusing on these decisions financially, you had better find fulfilment in other areas of what you do. You can still be ethical and conscious of your customers or the value you provide, but keep the money in focus if your aim is to be rich. #6 Invest in yourself You don’t need a formal education to start your own business and make millions, but some form of education certainly helps to understand how to run your business! Even through self-education online, knowledge is power and helps you make better decisions, which in turn affects your wealth. Some form of education is a highly valuable investment in ourselves.
Statistics show a strong correlation between education and wealth, and it can open the door to many opportunities. Even if you can’t start your own business right now, being educated and working for someone else on a decent salary can help you to build some capital to invest. Keep in mind many entrepreneurs don’t even branch out on their own until later in life, so don’t feel like you’ve already set your path. But if you want to be a millionaire by 30, you really need to ditch the steady pay check and take that risk head on.
Fortune favours the brave! And finally, #7 Don’t be poor! Fight for it! Work harder! A lot of us have been poor, it’s no way to live. Everyone has different circumstances and dealt different cards, but don’t let an excuse be your defining legacy. Fight for it! Eliminate all ideas that a mediocre life is somehow okay! And to close out with an old expression: “It’s not your fault if you’re born in the gutter, but it is your fault if you die there”.
Now go out and get it! .
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well planning for your life is always personal and a lot of times you want to be in full control but could you benefit getting out of your own way when it comes to financial retirement plan well Adam wolf Jacksonville’s retirement coach is here to explain how that works and Adam is one of the area’s leading certified financial planners his firm Wolf’s retirement navigation helps people plan for a successful retirement good to see you again brother great see Curtis all right how often do you do you run into a client who comes in and tries to tell you how to do your job yeah it’s about it’s about 50/50 and it’s it’s amazing because if we look at it and I try to do what you do it’s it’s almost next to impossible I mean my mother was a middle school teacher she also ran daycare centers I could never do that you know being around mourning and my daughter is too many kids so everybody has their idea of what they want retirement to look like they just need somebody to help them along the way and design that perfect retirement for them and that’s that’s what you do and I’m sure you get a lot of people saying they heard something on this TV show in this TV show and I think this is but it takes somebody like you who studies the entire thing to give them the best advice but what would you have an example of somebody who finally after you talked to him they saw the light and they were like here’s the keys to my portfolio go ahead yeah the best the best ones are there’s a perfect example one where the couple came in and they thought they both had to work another two years and so we took a look at what they had saved in their IRAs in their 401ks the gentleman had a pension and they both had Social Security we were able to design that plan to get her retired like within a month with him within a year and so let me tell you they’d like naming their pets after me now cuz they love you so much but it’s it gets to that point where that’s that’s why I do what I do because I do it every day and I’m there to help people meet their needs and get to that retirement that they truly dreamed of and I think that’s what the important part there is knowledge knowledge is power as they say we all learned that from school school of schools School House Rock but what what why is it so important for people to be not eligible about their retirement yeah so a lot of times you know they design it themselves or they’re working with somebody else who’s just may be focused on investments during their working years and as we get closer to retirement we have to take into account the investments the risk that goes into the taxes they the you know do we do we want to have enough that we’re gonna live and leave to our next generation and we want to take care of the spouses there’s so many nuances to retirement planning and that’s why we we focus on retirement planning and so doing that every day day in and day out is going to help our clients going forward and we hold education seminars we have workshops as well it’s all about the latest and greatest strategies new information new tax laws to better your overall life and retirement well for those people out there who are gonna come and see you obviously after seeing this so that they don’t come again let him do his job but so that so that they come fully prepared what are the type of things they should they should gather before coming to see you yeah we take we make the process very relaxing unlike a lot of financial services shops we have a great you know introductory meeting you bring what you’re comfortable with we have a list of items to gather as well to have an inventory of what you have but that really that first meeting is just you know what are your goals what are you trying to accomplish you know what have you you know you saved over the course of your retire of your working years to get you to in through retirement and because we only focus on retirement it allows us to key in on those issues that they really need to focus on to get them the best retirement possible good stuff all right man is good to see you again good see you if you’d like to learn more Adam has a great offer folks listen up for the first five callers with a portfolio of two hundred and fifty thousand dollars or greater he’s offering a complimentary full blown retirement plan just for you all you gotta do is call right now and that number is on your screen nine zero four two three two eight seven six zero again nine zero four two three – eight seven six zero that’s an incredible offer and you can
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Let’s take a look. If you’re in your 20s 30s 40s or 50s – What is the game plan? Here this is really cool. I think this helps people and also maybe might motivate you to take action a little bit more. Let’s say you’re 30 years old, you want to have at least one times your salary saved. So if you’re making $50,000 a year ,you want to make sure that you have 50 gramme in the bank. Let’s jump up to 45. You want to have 4 times your annual income saved. Once you get into your 60s, right, that’s 8 times. That’s a huge number! And you know, procrastination is probably one of the key components of why people are not necessarily successful, but at least this put you in the… I mean one of the biggest questions Al and I I get is, “Am I on track? How do I compare to other people that you see?” Well this is a good idea to take a look at how much money are you making, multiplied by those factors, and then that’s going to get you in the ballpark.
Right? Because I think a lot of times it’s just simple arithmetic. How much money do I need to maintain the lifestyle that I want long-term? Most of you don’t have enough. We’re not here to put fear in you. We want to make sure that you’re responsible to look at, “Hey, how much do I need?” To give you the confidence to do all the things that you want to do in retirement. Hey, Joe, why don’t we do kind of a simple example of let’s say some different ages. Perhaps your age 40 or 50 or 60.
Let’s say you have $50,000 saved. Let’s say you want to reach that $500,000 savings goal. Well, how much do you need to save per month to be able to do that? In this slide it’s showing you $179 per month if you’re 40. Look what happens if you’re in your 50s. $862 dollars per month and if you’re 60 you got to fast track this. That’s $3,875 per month. That’s of course at a 7% rate of return and assuming that you retired age 67.
Just four grand a month. Oh yeah, no problem. That does show why you want to start as early as possible when you’re saving. .
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We often get the question asking us, “what’s the best retirement plan if I’m self-employed?” Well, that’s hard to say. There’s lots of plans out there, and the best one depends on your situation, right? Do you have employees or is it just you? How old are your employees? What are their salaries? So just to simplify, I’m just going to assume that – one person, self-employed, maybe their spouse is involved in the business, but that’s it, no employees. in that case, you might want to look into something called a solo 401(k) or an individual 401(k). It’s really simple to set up, not really a lot of cost to maintain, but it gives you a great amount of flexibility. As a self-employed person you’re the employee and the employer. And with a solo 401(k), you can make an employee contribution, as well as a profit sharing or a matching contribution on behalf of the business – again, because you’re also the employer. It’s straightforward, like I said, easy to set up, and gives you a pretty large amount of flexibility. If we’re talking about larger plans, and something that’s going to give you an even greater tax benefit, you might want to look into something called a defined benefit plan.
This is a little bit more costly to establish. There are some filing requirements, there are minimum annual funding requirements, but if you’re making a fair amount of money and you’re looking to put away really large sums of money, a defined benefit plan can be the way to go. You can put hundreds of thousands of dollars a year away into a plan like this. You could also pair that with a solo 401(k) to give yourself even greater flexibility. So like I said, while there’s not one end all be all plan that’s perfect or the right one, it’s going to depend on your actual situation.
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I’M ASHLEY, SEE YOU NEXT WEEK. THIS MORNING, WE ARE TALKING THE WORD EVERYBODY LOVES TO HEAR, AND THAT IS RETIREMENT. HERE TO HELP US MAKE IT ALL POSSIBLE IS JEFFREY. GREAT TO HAVE YOU HERE TODAY. PEOPLE GO TO WORK EVERY DAY AND IT’S THE THING THAT THEY HAVE IN THE BACK OF THEIR MIND ALL THE TIME AND YOU SAY THERE ARE A BUNCH OF DIFFERENT STAGES TO RETIREMENT. IN SIMPLE TERMS, WE CALL IT BEGOGO YEARS AND THEN THE SLOW-GO YEARS AND THEN THEY WON’T-GOY YEARS. FOR MANY, IT SEEMS LIKE A DAUNTING TASK. HOW CAN PEOPLE MAKE THIS POSSIBLE? STARTING EARLY IS ALWAYS BENEFICIAL THAT EVEN IF YOU HAVE NOT STARTED PLANNING YET, YOU WILL GET STARTED. POSSIBLY A CERTIFIED FINANCIAL PLANNING PROFESSIONAL. GO TO THE WEBSITE AND YOU CAN FIND ONE. THE PLANNING IS IMPORTANT, ESPECIALLY FOR THAT GOING PHASE, IS THAT THE POINT WHERE YOU ARE JUST STARTING OUT AND PEOPLE ASKED THE QUESTION DO I HAVE ENOUGH TO RETIRE WITH? AM I GOING TO BE OK? AND THEN IT’S ALL ABOUT THE EXCITEMENT AND THE PLANNING. WHEN WE GET CLOSER TO THAT AND SAY I’M GOING TO RETIRE, ONE OF MY FIRST QUESTIONS, WHERE DO YOU GO? WHAT IS THE FIRST THING YOU’RE GOING TO DO? I WANT THEM TO BE THINKING ABOUT THE FUN THINGS.
ONCE WE KNOW THE FINANCES WILL BE OK, START PLANNING FUN STUFF THE MORE ACTIVE. WE DEVELOP SOME PLANS WHERE PEOPLE HAVE MORE MONEY TO TRAVEL WITH FOR THE FIRST FIVE TO 10 YEARS, AND AFTER THAT, PEOPLE TEND TO PULL BACK A LITTLE BIT. THAT IS THE SLOW-GO YEARS AND THE FINAL PHASE WHEN MORE PEOPLE ARE FOCUSED ON, WHAT DO I DO WITH THE MONEY I’M NOT GOING TO USE? HOW DO I TRANSITION TO MY FAMILY AND THE MOST TAX EFFICIENT MANNER POSSIBLE? AND I TALK ABOUT THAT IN MY BOOK.
THE BOOK HAS 30 YEARS OF INFORMATION AND IT’S A NICE, SIMPLE READ. BECAUSE EVERYBODY WORKS SO HARD ALL OF THEIR LIFE TO GET TO THE GOAL OF RETIREMENT. IN RETIREMENT IS SUPPOSED TO BE FUN. YOU’RE SUPPOSED TO ENJOY YOUR LIFE. EVERYBODY HAS A DIFFERENT PERSPECTIVE AS TO WHAT THAT IS. SOME GUYS WANT TO GO FISHING EVERYDAY. SOME MIGHT WANT TO DO DIFFERENT THINGS. GOLFING, WHATEVER IT MIGHT BE. WHATEVER IS IMPORTANT. THE MOST SUCCESSFUL KINDS WE WORK WITH RETIREMENT WISE ARE THOSE THAT HAVE A GOOD CIRCLE OF RUNS AND ENOUGH HOBBIES TO KEEP THEM BUSY. IF YOU’VE BEEN WORKING 40 HOURS, IT’S A LOT OF TIME. I’VE GOT ANOTHER STORY ABOUT THAT. LOTS OF TOGETHERNESS. IT REALLY IS THE DREAM FOR SO MANY PEOPLE. IF I’M COMING TO SEE YOU, HOW DO YOU PUT PEOPLE’S MINDS AT EASE? YOU HAVE THAT WORRY IN THE BACK OF YOUR MIND ALL THE TIME. WE TRY TO KEEP THINGS SIMPLE BUT WE HAVE A VERY SOPHISTICATED SOFTWARE THAT WE USED BEHIND THE SCENES AND WE ACTUALLY SHOW PEOPLE RESULTS.
WE COULD IMPORT ALL YOUR DETAILS NOW, WHAT IS YOUR LIFESTYLE EXPENSE, WHAT ARE THE ASSETS THAT YOU HAVE, WHAT IS THE INCOME YOU WILL HAVE COMING IN, AND WE HAVE PROBABILITIES. WE CAN DO UP TO 10,000 VARIATIONS BETWEEN NOW AND RETIREMENT WITH LIFE EXPECTANCY, SO WE TRY TO PLAN UP TO AGE 90. AND WE SAY, HERE IS YOUR PROBABILITY OF SUCCESS. THANKS SO MUCH FOR COMING IN. IF YOU WOULD LIKE MORE .
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Hey, what’s up? John Sonmez here from simpleprogrammer.com. Tired of pushy recruiters sending you LinkedIn requests for jobs you have no interest in? Tired of blasting out resumes into the dark? If so, you should check out Hired.com. Hired.com flips job searching on its head by having top employers like Facebook come to you after you fill out one simple application. You also get your own job coach to help you on your next job search. If you haven’t checked it out, I highly recommend you at least fill out the application. Just go to Hired.com/simpleprogrammer. When you get hired with Hired, you’ll get double the normal sign-on bonus for using that link. Today we’re going to be talking about real estate.
Yes. I have done some videos on real estate. Some of you are like, “What the heck? Why is this guy talking about real estate?” Well, I’ve done fairly well in the real estate realm. If you’re interested, you can always check out my playlist on real estate investment and investment in general. I’m not going to go into all the details here, but occasionally I like to answer a few real estate questions on this channel. I got one here from Jonathan and he says, “I’m 21 and set a goal that I want to retire by 40 to 45.” Cool. “With 20K of passive rental property income.” Man, that’s awesome. I like that. I love that goal. That’s a good goal. “Currently saving money to buy my first property and hopefully, when I get a web development job I can speed up the process. My question is how do I plan for this goal?” This is good.
So, 21, Jonathan is 21 and he’s thinking this way and he’s got this plan by 40 to 45 to make 20K of passive income from rental properties. I love this. This is great. “Thanks for everything you do and have a beautiful day.” I am having a beautiful day. Thank you, Jonathan. “P.S. I was thinking of buying a duplex and live in one and I rent out the other one so basically the tenant pays my mortgage.” So, okay, there’s a lot of ways to approach this. I think Jonathan has got his head screwed on right. Well, I’ll start with the last, the P.S. of renting out a duplex and living in one side. I think that’s a great idea. This is a fantastic thing. More people should do this. A lot of you young people out there that are thinking about renting or buying a house, consider buying a duplex and renting out one side and if you find the right deal which—it’s out there, you could actually have the renters pay your rent.
You see what I’m saying? You could actually live for totally free by having a duplex and renting out one side. I’m not going to say it’s going to be super easy. I’m not going to say that those deals are everywhere. It depends on where you’re at. You’re not going to find that deal in California or New York, San Francisco, not going to happen, but if you’re in the Midwest you might be able to find that deal. I’ve seen it before. I think that’s a great idea, but let’s talk about the plan. 21, you want to retire by 40 to 45. You want to get 20K of passive real estate income. It’s not going to be easy, but it’s certainly doable. What you need to do is you need to calculate backwards where you need to be and have a real solid plan for this.
I can give you a general outline, but I haven’t run the numbers so I can’t tell you exactly. There are going to be some factors in here, but you actually need to take a spreadsheet and actually need to calculate this and figure this out. It’s going to be fairly complex, but you don’t have to be super detailed. You can kind of ballpark this, but you do need a spreadsheet. You can get some rough answers here, but calculate this out, 20K of passive income from real estate. Let’s say 45. What does your gross need to be? You’re going to have expenses, you’re going to have rents, I mean you’re going to have property management, you’re going to have a bunch of things here. That can give you an idea of what kind of wrench you need to be pulling in. It’s not going to be a 20K wrench, you’re not just getting 20K. It might be like 30 or 40K a month of rents. In order to get 40K a month of rent how many properties do you need and how much will those properties cost? How can you divide that over time and put inflation into the equation a little bit here over that period of time? Work backwards and make a spreadsheet and run some scenarios.
This is going to take time and some planning. Like I said, you can rough ballpark it. If I were just going to give you what I think would probably work for you, it also depends on how big your budget is. How much money are you investing every year? How much money do you have to invest every year. If you can put 10K down onto a rental property every year that’s different than, “Hey, I’ve got 50K to invest in real estate every year.” That’s different. Or 100K. Those are all different scenarios. What you’re planning based on your current scenario might—there may not be—there might be this gap and you might be like, “Well, how do I get there?” It might not be apparent.
You might have to do some other things. You might need to make more money in your job or start a side business in order to fuel that. I had to do that to reach some of my real estate goals. Think about that and calculate that out. I’ll give you kind of a rough timeline, a rough plan that I would have if I were you which would be something like—and this was the plan I initially developed when I was doing this which would be to buy one property every year, regardless. The nice thing I like about this plan is that it’s scalable.
The size of the property depends—is dependent upon how much money that you have in that year. When I first started in real estate investment when I was close to your age, I think I bought my first house at 19, but I really started doing investments around 21 and started this plan of buying one house per year. I think the first house that I bought I was able to put $10,000 down. It was like a $100,000 house or $120,000 house. The next year it was probably about the same and then probably like the third or fourth year I had more money. I was able to put $20,000 or $30,000 down. I got to the point where I was buying properties and I was putting about $20, $30, $40,000 down every year on a property when I buy it. Some of that was because of the real estate that I was already making me money. Some of it was because I was making more money in my job and I had businesses and side things going on which helped me to do that. That’s the kind of plan that I would—it’s not going to happen magically. I think that’s the key thing. You actually have to have a solid plan for this and you can run these numbers and calculate this out.
There’s actually a really good book that I recommend called The Millionaire Real Estate Investor. I think that’s by Garry Keller, the founder of Keller Williams if I recall correctly. I don’t recommend very many real estate books, simply because a lot of them are crap. The reason why I’m really going to recommend that book to you is because it has these charts that show you—it gives you a realistic expectation over 20 years what the value of a property is likely to be, how much money you’re likely to make from it, cashflow and all that. Again, it’s as complex equation. You’re not going to be able to nail this down perfectly, but at least if you run the numbers and you do the best job that you can, you can have a ballpark idea and you can always adjust the plan. You’ve got to have—you’ve got to know where you are and where you need to go in order to reach these goals. I’ll also recommend for you—I have a course that I created called Simple Real Estate Investing for Software Developers.
You can check that out here. If you buy that course, obviously it has a money back guarantee on it, but that’s going to help you to give you the basics of everything I know about investing. Just to give you a background, I have about 26 rental properties. They are all paid off. I started investing when I was 19. I kind of know what I’m talking about here. I don’t give a lot of bull shit advice about this. I give you exactly—practical advice on how to get started and how to do this.
The reason why I created the course, even though it might not seem like it goes along with a lot of my other content, it was just simply because I was tired of so many people giving BS real estate advice and doing all these kind of scamming, no money down, speculative moves that just doesn’t make sense. You need some kind of practical advice so that’s what I put together there. Go check that out. This is good. I think you’ve got a good plan here. You just need to develop the plan further and it’s going to be very dependent on your individual factors and—I think you have information though to say, “Okay, can you do this in 45—by the time you’re 45?” absolutely! I believe that you can. It’s not going to be easy, it’s going to be hard to do. 20K is a pretty big number but it’s certainly possible, but you’re going to have to start moving now, which it seems like you’re going to do, and you have to have a plan and it’s going to take a lot of work and a lot of effort and you got to find good deals in order to be able to do this in that time frame.
All right, I hope that is helpful to you. If you have a question for me, you can email me at [email protected]. Don’t forget to click the subscribe button if you haven’t already. Click that Subscribe. Click the bell to make sure you don’t miss any videos especially if you like the real estate stuff because, hey, those videos might not show up and then you’d miss it and then you wouldn’t find out the secret to life and how to make millions of dollars. All right, I’ll talk to you next time. Take care .
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