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Can I Retire at 55? Tips for Early Retirement

user 0 Comments May 30, 2023 Retire Wealthy Tips for Retiree's

If you'' re reasoning of retiring at 55, you wish to take care regarding where you obtain your advice and assistance, which'' s due to the fact that many retirement suggestions is geared toward those that retire rather a little bit later on, in truth … The majority of people retire at 62, yet points will be various for you if you'' re mosting likely to retire at'55. To make sure that'' s what we ' ll speak about for the following pair of minutes right here, we'' ll look at where you can get the cash from, and also just how that deals with taxes in addition to healthcare, after that we'' ll appearance at some actual numbers and what it may appear like for someone who retires at age 55. We might also desire to get thoughtful simply quickly and ask the inquiry, Why age 55? Yes, it'' s a nice round number. And also there are some interesting tax obligation methods that are readily available around that age, but let'' s claim you could retire a little earlier at 54, would you desire to make that happen? Or if you worked a few more years …

I understand you'' ll believe this is insane, however if you worked a pair of even more years and you could not impact your finances, however still take some of those dream vacations and invest time with liked ones, would that be worth it to maybe work till 59? So we want to find out specifically why you are going after a specific goal and also then we can boost the opportunities of success for you, so allow'' s begin with health and wellness protection, this is a difficult one because you'' re retiring quite a little bit earlier than lots of people who could be near that Medicare age, so you have a variety of various choices to proceed being covered, and it is a great concept to have actual wellness insurance policy coverage just in situation something takes place. A couple of your selections consist of, number one, you can proceed your current advantages from a task if you have them for up to 18 months in the majority of cases, and that'' s under COBRA or your state'' s continuation program, that can get fairly pricey since you'' re going to pay the complete cost, if you weren'' t currently doing that, plus possibly a tiny little bit extra for administration, but it is a means to continue with the program that you currently have, so that can be handy if you are mid stream in certain treatments or if it'' s going to be tough to get particular advantages that you presently have on a various health and wellness care program, unfortunately, that ' s not generally a lengthy term service due to the fact that we need to get you up until age 65, which is when most individuals enlist in Medicare, and also you need to see your expenses go down quite a bit at that point, perhaps depending on what happens, so another option that a great deal of individuals look at is buying their very own coverage, and that happens usually via a medical care industry or an exchange, and also that'' s where you just by insurance coverage through an insurance policy company.So you can go directly to the insurance providers, however it'' s commonly an excellent concept to go through … Begin at healthcare.gov, and then go via the industry or the exchange, as well as that way you can shop some strategies and possibly, depending on your earnings, you can possibly get some expense reductions that make it a lot more budget friendly, I'' ll talk more about that in a second, however another option is to change to'a spouse ' s plan, if you take place to be married as well as that individual has coverage that'' s going to continue for whatever factor, that could likewise be a service for you, when you leave your job, it can be a qualifying occasion that permits you to get on that person'' s program, but allow'' s talk more concerning conserving money on wellness treatment expenditures prior to age 65, a lot of people are going to get a plan based on the aspects that are most crucial to them, so that can be the premium or the out of pocket optimum, the deductible, the carbon monoxide pays, specific locations of coverage, all that kind of thing, you can choose a strategy that fits your needs.Now, you might discover that those tend to be quite pricey, and also so if your earnings is listed below particular levels, you might be able to obtain effectively a reduction in the premium, it might be in the form of a tax credit score or a subsidy, so here ' s just a sneak peek of exactly how points can look for you, allow'' s claim your income is, let ' s state 50,000 in retired life, and also you need to look at precisely what earnings implies, yet there is no protection available from a spouse, we ' ve got one adult, as well as let ' s say you are … As our video recommend age 55 below, so you may get a benefit of about 422 a month, meaning you can invest that a lot less each month, as well as that'' s going to make it a great deal simpler to pay for insurance coverage on these plans, if we switch your revenue down to 25,000 per year, the help is also bigger, so as you can see by varying or controlling your revenue, as well as this is something you may have some control over if you retire at 55, you can likewise control your medical care prices, we'' ll talk about some conflicting objectives right here, where you may not desire to absolutely minimize your revenue throughout these years, but this is crucial for you to know if you'' re going to be paying for your very own insurance coverage, as well as if you'' re experiencing sticker label shock when you see the rates …

By the method, I'' m going to have a web link to this as well as a bunch of various other sources in the description listed below, so you can play with this exact same calculator on your own. Currently, as soon as you'' re on Medicare, the cost needs to drop a fair bit, this is a calculator from Fidelity where we can state, allow'' s state you are a woman, and we'' re going to claim you ' re eligible for Medicare at this factor, so we'' ll bring you as much as age 65. It is going to be a fair bit greater price, if you consider it before age 65, which'' s due to the fact that you are spending for those exclusive plans from insurer, let'' s say you ' re going to live until age 93, therefore you might expect to invest approximately 5800 6000 dollars per year, depending on your health and wellness and your location and various other aspects, maybe essentially, however this is a price quote of what someone might invest, a solitary woman annually in retired life, naturally, that number is going to raise every year with inflation and degrading wellness issues.But this is a

ball park estimate of what you might be spending in the future, now we reach the question of, do you have the funds to retire at 55? And also that comes down to the revenue as well as the assets that you'' re going to draw from to offer the resources you require to get things you want and also require, and also one way to consider this is to state We intend to prevent very early withdrawal charges since once again, you are retiring at an age that'' s earlier than the normal senior citizen and also most pension are made for you to take withdrawals at 59.5 or later, to prevent those fines, fortunately, you have a number of options, so with individual and also joint accounts, just taxed broker agent accounts, you can normally withdraw from those without any kind of fines, however you might have funding gains taxes when you offer something, those tax obligations may go to a lower rate than you would pay if you take big withdrawals from retired life accounts, yet you simply desire to increase as well as three-way check that, but that can be a fluid resource of funds.You.

Can additionally commonly withdraw from Roth accounts pretty easily. Those normal payments come out first, in various other words, you can pull out your routine payments at any time with no taxes and also no charges, what that implies is that'' s the annual limitation payments you could have been making her by year, so the 7000 per year. That cash would certainly be quickly accessible, yet if you have various other cash types like Roth conversions, as an example, you'' re going to be very mindful and also contact your certified public accountant as well as figure out what every one of that could appear like. There. Are various other means to obtain at funds that are within pre tax obligation pension, and it could actually make good sense to make use of those to some level, we'' ll talk extra about that soon, however these are some of the tricks you can use to avoid a very early withdrawal fine yet still draw on those properties prior to age 59.5.

The very first one is the so called regulation of 55, so this uses if you function at a task with, allow'' s state a 401K, as well as you stop working at that company at age 55 or later on, if you meet particular criteria, after that you can take out those funds from the 401k so they go straight from the 401k to you. They don'' t visit an individual retirement account, you can withdraw those funds without a very early withdrawal penalty. A complication here is that not every employer allows you to do that, so 401k strategies can establish a lot of their very own guidelines, and among them may be that they don'' t allow you simply call them up and also take cash whenever you desire, they could make you … Take out the entire quantity, so if that'' s the case, this isn ' t going to function, so be certain to three-way check with your employer and also the plan suppliers as well as figure out precisely just how this would certainly work logistically or if it will also function. Next, we have SEPP that means substantially equal routine repayments or regulation 72. This is a possibility to draw funds from, allow'' s state your IRA or a specific IRA that you select, yet prior to age 59 as well as a half without getting very early withdrawal penalties.Now, this is not

my preferred choice. I put on ' t always suggest this very usually in any way, and also the reason is due to the fact that it ' s easy to slide up and wind up paying tax charges. The factor for that is in component that it ' s truly inflexible, so when you establish this, You compute a quantity that you have to take out yearly, and it has to be the same quantity every year, and you have to make certain you do that for the longer of when you transform age 59 1/2 or for 5 years.And even that sounds sort of easy, but it ' s still

very easy to flounder, and you also have to avoid making'any sort of modifications to your accounts, so it ' s simply actually rigid and also can be tough to adhere to you, so … Not my favorite option, however maybe an alternative. Those of you that function for governmental bodies, maybe a city organization or something like that, you could have a 457b plan, as well as those plans do not have very early withdrawal penalties prior to 59 and a half, so you could take out money from that and utilize some income, pre pay some taxes, and have some cash to invest rather easily, this incidentally, is a disagreement for leaving cash in your company ' s 457 versus rolling it over to an IRA, because once it visits an IRA, you go through those 59 1/2 rules and also a prospective very early withdrawal penalty.So that can end up leaving you with 72 to collaborate with, as an example, which once more is not ideal.

You might be asking, well shouldn ' t I simply decrease taxes and hold off on paying tax obligations for as lengthy as possible? And also the solution is not always. So it can make sense to proceed and pre pay some taxes by getting strategic, the factor for that is that you will at some point need to pay tax obligations on your pre tax cash and it might take place in a huge lump, which can bump you up right into the greatest tax braces, so maybe much better to smooth out the price at which you draw from those accounts and hopefully maintain yourself in reduced tax bracket, at the very least reasonably speaking. So when your RMDs or your needed minimum circulations kick in after age 72 under current legislation, that might perhaps bump you up into the highest possible tax braces, perhaps you intend to smooth points out and take some earnings early. Allow ' s look at the concern of, Do you have sufficient with some details numbers, and also prior to we glance at those numbers, simply want to point out that I am Justin Pritchard.I aid individuals strategy for retirement and also invest for the future. I ' ve obtained some great sources, I think, in the description listed below, several of things that we ' ve been discussing below today, as well as some basic retired life planning details. If this is on your mind, I assume a whole lot of that is going to be truly handy for you. Please take'a consider that and let me know what you think about what you find. It ' s likewise a great time for a friendly pointer, This is just a brief video clip, I can ' t potentially cover whatever. Please triple and quadruple check with some experts like a CPA or an economic advisor before you make any decisions, so allow'' s obtain back right into these concerns, Do you have enough? As we constantly need to point out, it relies on where you are as well as just how much you invest and just how points help you.Are you lucky to retire right into an excellent market, or are you unfortunate as well as retiring right into a bad market? All of these different elements are mosting likely to influence your success, but allow ' s jump over to my financial preparation tool as well as have a look at an instance. This is simply a hypothetical instance, it ' s the globe ' s most over simplified instance, so please keep that in mind, with a genuine person, we ' ve obtained a great deal a lot more taking place. The globe is a complex area and also points obtain messier, but we ' re keeping it really straightforward right here, just to speak about an example of just how points might look, so'this individual has one million in pre tax assets and also 350,000 in a brokerage account, and if'we just rapidly glimpse at their control panel here, pretty high chance of success, so allow ' s make it a little a lot more fascinating and also claim … Possibly that individual retirement account has, let ' s state, 700,000 in it. What is that mosting likely to do? And also by the method, this is still a whole lot more than a great deal of individuals have, but once more, if you ' re mosting likely to be retiring at 55,

you normally have quite reduced costs and/or a great deal of assets. Allow ' s keep in mind right here that retirees wear ' t necessarily invest at a flat inflation adjusted'level, as well as I ' ll get right into the assumptions right here in a second, yet allow ' s simply look at if this person spends at rising cost of living minus 1% utilizing the retired life costs “smile,” that considerably enhances their opportunities, and also I ' ve got video clips on why you might think about that as a prospective fact, so you can look right into that later at your recreation, but as much as the assumptions, we presume “they invest about 50,000 a year, retire at age 55. The returns are 5.5 %'per year, and also inflation is 3 %each year. Wouldn ' t that be freshening if we obtained 3% … So we look at their revenue right here age 55, absolutely nothing, and after that Social Security kicks in at 70. They ' re doing a Social Security bridge method. I ' ve got videos on that particular as well, or at the very least one video clip, the complete year begins right here later, and afterwards their Social Safety and security change for inflation, looking at their tax obligations, we have zero tax obligations in these earlier years due to the fact that they are simply not'drawing from those pre tax accounts.Maybe not getting a lot, if anything, in terms of capital gains, maybe their deduction is wiping that out, so we might have a chance here to really do something and again, pre pay some tax obligations and also pull some taxed income onward.

In fact, if we eye their government income tax obligation bracket, you can see that it ' s fairly reduced from 55 on, possibly they intend to draw some of this income onward to make sure that later on in life, they are attracting every little thing out of the pre tax obligation accounts simultaneously. It simply depends on what ' s crucial to you as well as what you wish to attempt to do, which brings us to some pointers for doing calculations, whether you are doing this with somebody, a financial coordinator or on your own, you desire to look at that space between when you quit working as well as when your revenue benefits begin from, let ' s claim, Social Safety, there ' s also that space between when you quit working and when Medicare begins, and also that ' s another essential thing to check out, however what are your approaches available there? Should you take some revenue, as well as exactly just how much? That ' s mosting likely to be an area where you might have some control, so it ' s worth doing some great planning.We additionally wish to look carefully at the rising cost of living and investment returns, and what are the assumptions in any kind of software that you ' re making use of, as an example? These are truly vital inputs and also they can dramatically transform what takes place … You saw what took place when we switched over from a flat'inflation adjusted boost each year

to the retirement spending smile, simply a refined little change has a large difference on just how points unfold, and in that scenario, incidentally, we would normally have healthcare enhancing at a faster price. Like I said, we use an over simplified example and also didn ' t necessarily consist of that in this situation, however you do desire to click via or ask questions on what precisely are the presumptions and are you on board with those assumptions? You may likewise require to make some changes, and also this is just the reality of retiring at a very early age when you might have 30 plus years of retired life left, a lot can take place,'and also there actually is a great deal of benefit to making mild changes, specifically throughout market collisions, as an example, so.If things are not always going excellent, some little tweaks can possibly enhance the possibilities of success substantially, that could indicate something as straightforward as skipping an inflation change for a year or more, or maybe dialing back some getaway investing. These are points you put on ' t desire to do, that ' s without a doubt, yet with those little modifications, you can possibly maintain things on the right track, which method you put on ' t need to go back to work or make bigger sacrifices.And so I wish you discovered that practical. If you did, please leave a quick thumbs up, thank you and take care.

I don ' t necessarily suggest this really frequently at all, as well as the reason is due to the fact that it ' s easy to slide up and end up paying tax fines. It ' s likewise a good time for a friendly pointer, This is simply a short video, I can ' t potentially cover whatever. It simply depends on what ' s essential to you and what you desire to attempt to do, and also that brings us to some ideas for doing estimations, whether you are doing this with somebody, a monetary coordinator or on your own, you desire to look at that void in between when you quit functioning as well as when your earnings advantages begin from, let ' s state, Social Protection, there ' s also that void between when you quit functioning as well as when Medicare begins, and that ' s one more important thing to look at, however what are your strategies offered there? That ' s going to be a location where you might have some control, so it ' s worth doing some great planning.We likewise desire to look closely at the rising cost of living and also investment returns, as well as what are the assumptions in any kind of software that you ' re utilizing? These are points you don ' t desire to do, that ' s for certain, however with those little adjustments, you can possibly keep things on track, and also that means you wear ' t have to go back to function or make bigger sacrifices.And so I hope you found that practical.

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Retirement Community Arizona

Retirement Transition… What you need to know to succeed!

user 0 Comments May 12, 2023 Retire Wealthy Tips for Retiree's

moving into retired life can bring you so much delight and satisfaction as well as enjoyable and some freedom therefore far more but you need to see to it that you make this shift as smooth as possible now you could be wondering what can possibly go incorrect becoming part of retirement right but we'' re right here to tell you we see people constantly battle moving from their job into this first area of this stage of their life called retiring we see numerous individuals people that fall short including your daddy he did he did actually died method before his time and also other individuals do also and we wear'' t desire that for us and we don'' t want it for you so today we ' re going to stroll you with steps to make certain you start on the right foot we put on'' t desire you to ask yourself if you did the appropriate aspect of retiring as well as start to let regrets resolve in a lot of people begin considering their retirement from the first day they begin a work and also you know we did the same point and afterwards as we entered we weren'' t as prepared as we thought we were as well as we actually battled initially we were lucky because we rotated as well as we learned from our mistakes as well as we discovered from our customers mistakes and for us you recognize we'' re four years into this it'' s an ever-evolving um change in our life however however in the really beginning it'' s really vital to obtain it right so we'' re going to share with you today some suggestion on exactly how to make the most effective way of this change so that you don'' t make the same mistakes that we did as well as others do you understand I can easily think about a half a dozen people who went into retirement as well as they in fact call us and state I don'' t comprehend I ' m I ' m actually miserable well my dad sadly he at 65 my sibling and also I purchased him out from business and also he retired narrative is he was dead in 15 years and you understand he had problem with he dealt with retirement he dealt with a loss of identity the loss of neighborhood he didn'' t recognize what to do with the 40 plus hrs that came his method and if you'' ve been following us a long period of time you'' ve heard this before but he'' s the ideas behind this service this is why we do what we do since we want individuals to grow in retired life just how'' s that for a word thrive is great I obtained that yesterday at a conference oh you did thrive nice we'' re everything about having individuals prosper in retirement and also in order to thrive in retirement you need to get the transition down that'' s right so let ' s spend a min on what can fail and also why first point that we listen to is boredom sets in as well as there'' s nothing even worse than awakening day in day out questioning exactly how you'' re going to fill the following 12 to 14 hrs as well as not have terrific suggestions that occurred to my father and also the other thing social seclusion is a massive threat you understand during our occupations ours for sure and also most likely yours you'' re surrounded by numerous people there'' s a great deal of time alone in retirement so to go from that hectic surrounded by hundreds of individuals to get on your own or simply you and your companion it actually can be dreadful and you recognize the 3rd thing is some health and wellness problems can wreck your retired life you understand points take place to also the healthiest individuals we had a client that was prepared for retirement ready to go her other half prepared to go and they were mosting likely to travel that was their leading goal as well as after that she broke her hip as well as when she began to get healthy her partner fell and also broke his shoulder they had two years not being able to be successful in their vision of what their retired life was so health and wellness issues can turn up but here'' s what I would inform you overlooking your health can make it even worse right so let'' s allowed ' s experience some points that would help individuals have a smoother shift to make sure that if one of these missteps or even worse comes into play they still can glide right into retirement and also have an effective return due to the fact that everybody'' s roll it out we want you to thrive so what'' s the initial thing people can do to have a much better transition I would state the very first thing you can begin doing is plan early you recognize this is a really essential action despite regardless of where you remain in your occupation beginning to plan because people wait on for this for this strategy to capture them as well as after that they really feel like they'' re always behind you yeah you want to prepare early you wear'' t intend to wait till one decade when you'' re in retired life this once again'I ' ve stated this before this phase for us is 30 or 40 years so you want to truly put a strategy basically so that you'' ve got an instructions in which you intend to go and also truthfully this this process of planning need to start in my mind a minimum of 5 years prior to your official retired life date as well as there'' s several components of it to the planning that individuals just Miss as well as if they avoid everything with each other and it'' s amusing individuals push back on'us when they claim I put on ' t I put on'' t want a regular and I wear ' t desire to intend and also those are usually the ones that come back to us and say I ' m now stopping working right here are some components around preparing that we'' d like you to think of so what I was mosting likely to state is this is now we'' re speaking about developing a plan for retirement to make sure that you have a much better shift and if you'' re 5 years into retired life you can start throughout once more and also do this planning but the initial component like you said did you state it yet what are your objectives no you didn'' t claim it yet no allow ' s say it now the very first part is setting your retirement objectives actually simply asking on your own that question you know what are my retired life goals as well as spend some time with it in our on-line program your retired life tactical plan we damage that down into five pillars to have you take into consideration as well as we'' re not claiming our 5 pillars are your 5 pillars yet ours are physical health mental Wellness partnerships spouse companion partnership and after that exactly how you'' re going to share your wisdom so think of those five and after that determine what are your five columns well as well as I would certainly begin with R5 if you'' ve got other ones that'' s great you recognize under relationships there'' s household and also friends as well as all that yet it'' s it ' s a great base structure yeah a great structure to deal with all of these five columns need a plan they require objectives and also they require some activity steps if you do that your shift will certainly be smoother you know some some other considerations that are really vital is do you still wish to work that'' s right some people do do you still wish to work permanent or part-time or as a professional you know you obtained to choose do you want to remain in it or part in it or otherwise in it at all you know we run this business part-time as well as we obtain a lot gratification out of it since it'' s a type of knowledge sharing for us as well as some individuals require to maintain benefiting the cash which is great you don'' t requirement to function 80 hrs a week once again yet working to make money in retired life is fine you'' re still pay attention individuals are functioning well into their 80s and 90s yet it might look a little bit differently it might function for a business that really matches better with your um individual worths values yeah um some individuals um work because they desire the neighborhood as well as some people function even if they need to be active which'' s how they do it so you understand you need to believe regarding your vision you need to believe concerning your pillars and afterwards the various other point is you recognize think of creating a spending plan well before retired life you recognize I assume that'' s additionally extremely critical you know recognize what your cash circulation looks like and with a clear budget plan you can figure that out without a clear budget plan you can locate on your own in a jam rather rapidly where that concern before this will such as do I wish to function becomes I'' m gon na need to work and there'' s a great deal of information out there on Financial Preparation and also establishing a spending plan in return atmosphere we wear'' t do any of that job we do all of this non-financial work yet getting together with your account and a financial planner does aid a great deal now knowing how much earnings is guaranteed is the primary step and afterwards develop your dealt with cost into that spending plan you recognize the various other thing I would certainly say is keep an eye out one five and 10 years or more to make certain you'' re building reserve below or there I know that'' s what we speak about fairly a bit and also it'' s tough to do to actually you recognize pull some money apart yet if your objectives include travel you'' ll requirement to build that in what um you understand the various other aspect of preparation is you need well the preparation you require to discover a method to feel pertinent once more you understand during our occupations our jobs we'' ve constantly had a function we constantly felt essential we always felt required we obtained so much out of our careers when you move right into retirement that vanishes well you recognize it'' s funny when you'' re leading groups and also making important decisions you know every one of that proceeds to develop that relevance right and so now the initial Monday after retirement currently what just how are you gon na drive relevance in your life yet not everyone really requires to deal with this as soon as possible when you first enter retired life regarding really feeling pertinent once again because you can simply take a bit of a pause which is okay but if you are feeling pointless and you desire some help then lean a lot more on your pals set up some weekly Gatherings get obtain the social end of your life rather energetic because that can be by itself meeting and also really feel relevant or join some clubs or teams you know instantly really feel and also locate similar people around you a great place to do that is volunteering I understand we yap about that however it functions you recognize put your skills and skills as well as energies you know in a focused area well another point that'' s interesting that you could do as well as you you did this and I do it each day I check out but checking out education further education maybe college you obtained a little bit of your MBA at Penn and you took an online course but you recognize when you'' re beginning to do some more formal education it'' s it could hone an existing skill or you can discover a brand-new skill and afterwards you can utilize this knowledge to aid others either as an advisor or a volunteer however you'' re promptly mosting likely to have a community and you'' re going to really feel needed as well as appropriate Once again by helping others you recognize so we discussed in this shift you know what can go wrong you understand why very early preparation is important and making sure you have a spending plan and after that we hung around feeling appropriate once again and these ideas as well that we discussed will aid you feel relevant and lead you to a life of function bear in mind retirement is an exciting time of your life and we ought to all do what we wish to do when we wish to do it with whom we intend to do it and also simply ensure that we squash it to make sure that you can prosper in retired life that'' s our brand-new word absolutely your brand-new word we wish you such as this video clip and also if you did you'' re mosting likely to enjoy this following one we produced a three-part collection of video clips regarding preparing for retired life and also we enter into depth on one decade out 5 years out and after that one year out watch these 3 beside help you with more concepts on transitioning right into retirement

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Retirement Community Arizona

Why This Investment System Can Help Retirees Worry Less About Their Retirement Plan

user 0 Comments May 8, 2023 Retire Wealthy Tips for Retiree's

I wish to share an investment system for retired people to hopefully help you as you'' re believing regarding as well as preparing for your retired life we'' re additionally mosting likely to check out exactly how to prepare your retired life for the numerous potential prospective economic Seasons that we may be headed into so we intend to consider the several seasons and afterwards the Easy System that'' s going to aid lower taxes and afterwards lower danger as well currently if I place'' t met you yet I ' m Dave zoller and also we aid people prepare for as well as Apply these retirement methods actually for a select variety of people at streamline Financial that'' s our retired life preparing company but since we can'' t help everyone we intend to share this with you too so if you like retirement specific videos regarding one each week be certain to subscribe so in order to develop a proper investment plan in system we want to make certain that we construct out the retired life revenue plan first because without the revenue plan it'' s much more difficult to create the best investment technique it'' s type of like without the earnings plan it'' s like you ' re rating well 60 40 profile seems good or you know May possibly this amount in the conservative pail appears affordable you currently understand as well as as well as you really feel that as you get close to retired life that goal of simply even more cash isn'' t the the end-all goal that we need to actually be going for for retirement it'' s extra concerning sustainability and also assurance as well as after that actually the assurance of income and also perhaps less threat than prior to the last three decades uh things that you did to be effective with the monetary side are mosting likely to look different than the following 20 or 30 years currently if you need assistance defining the the earnings plan a little then take a look at the do it yourself retired life training course listed below this video now as soon as you do Specify your goals for retirement and then the revenue required to accomplish those goals then creating the investment system ends up being a whole lot less complicated and within the financial investment plan we actually recognize that we can just control three things in all three points we in fact desire to reduce through this investment system the initial thing we can reduce or minimize is just how much tax you pay when investing we had a a client that was not a client of simplify Financial however of a tax obligation company involving the the CPA company in March to grab his income tax return and he was completely amazed that he had sixty thousand dollars of extra earnings on his income tax return that he had to pay tax on ideal away before April 15th and it was due to the funding gains being identified and also other circulations within his investment account and also he said however I didn'' t sell anything and the account didn ' t also rise that much in 2014 and I reached pay tax on it however he was already in the highest tax bracket paying around close to 37 percent on temporary funding gains as well as rewards as well as interest so that was an unpleasant surprise as well as we see it happen regularly than it ought to however this can truly be avoided and right here'' s 2 methods we can manage tax to make sure that we put on'' t need to have that occur as well as truly just control tax obligation and pay much less of it is the goal and also I'' ll keep this at a high degree however it'' ll get the the factor throughout top is the type of Investments that you own some are perhaps funds or ETFs or private uh equities or things like that the funds and ETFs they might pass on capital gains as well as as well as distributions to you annually without you even doing anything without you offering or or getting however it occurs within the fund a whole lot of times now we would certainly use funds and ETFs that are considered tax obligation reliable so that our customers they can choose when to recognize gains as opposed to letting the fund company make a decision now the second method is by using a technique that'' s called tlh every year there'' s many several fluctuations or large fluctuations that occur in a financial investment account as well as the method that we call tlh that permits our clients that'' s tax obligation loss collecting it permits them to offer a financial investment that might be down for component of the year and after that relocate right into a really comparable financial investment as soon as possible so that the financial investment technique stays the very same as well as they can actually take a write-off on that loss on their taxes that year currently there'' s some rules around this once more we'' re going high degree yet it offsets uh you understand for that one customer that are not a customer but who had the huge sixty thousand dollars of income he can have been countering those resources gains by doing tlh or tax obligation loss harvesting that approach has actually saved hundreds and also hundreds of of bucks for customers over a period of years so on to the following point that we can regulate in our investment plan which'' s cost this set ' s less complicated yet many experts they wear'' t do it due to the fact that it ends up paying them less now considering that we'' re certified economic organizer experts we do comply with the fiduciary standard as well as we'' re obliged to do what'' s best for our clients so tell me this if you had two Investments as well as they had the specific same approach the very same Returns the exact same danger and also the very same tax efficiency would you rather want the one that costs 0.05 percent per year or the one that costs 12 times much more at point six percent well I recognize that solution is evident and also we'' d opt for a reduced expense funds if it was all the very same inexpensive funds as well as ETFs that'' s how we can really assist reduce the expense or that'' s just how you can assist decrease the price in your investment plan since every basis point or part of a percentage that'' s saved in price it'' s included to your return every year and this includes up to a whole lot in time now the last thing that we wish to reduce and manage is risk and also we currently spoke about the flaws of spending entirely based on on risk tolerance and also when it involves take the chance of a lot of people assume that term risk tolerance you understand just how much danger can we on a scale of one to 10 where are we on the the threat element but there'' s one more method to consider danger in your investment method and like King Solomon our team believe that there'' s a period for everything or like the if it was the bird song There ' s a season for whatever as well as we also think that there'' s four different seasons in spending as well as depending upon what season we'' re in some Investments perform far better than others as well as the 4 Seasons are pull it up right now it'' s more than expected inflation which we may be feeling yet there'' s additionally a season that can be less than expected or depreciation and after that there'' s greater than anticipated economic growth or reduced than anticipated economic growth and also the goal is reduce the threat in investing by making certain that we'' re prepared for every one of those potential Seasons because there are specific property courses that have a tendency to do well during every one of those seasons and we don'' t recognize no one knows what'' s truly mosting likely to occur you understand people would would speculate as well as say oh it'' s going to be this or this or whatever could happen but we put on'' t know without a doubt that ' s why we want to make certain we just have the possession classes in the best areas to make sure that the income plan doesn'' t get affected so the financial investment system integrated with the earnings system clients wear'' t need to fret about the movements in the marketplace since they understand they'' ve got sufficient to weather any prospective period I hope this has actually been valuable for you up until now as you'' re believing regarding your retirement if it was please subscribe or like this video to make sure that ideally other individuals can be helped too and after that I'' ll see you in the next one make sure thanks

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Instead Of Downsizing your Home for Retirement, TRY THIS!

user 0 Comments April 25, 2023 Retire Wealthy Tips for Retiree's

because scaling down isn'' t for everybody or possibly there ' s reasons scaling down doesn ' t work for you as well as we'' re going to cover that in a couple of minutes you understand if you'' re not in agreement with your companion or you don ' t have the moment or money or your house is actually the excellent size for your brand-new life after that this video will offer you brand-new hope as well as inspiration of what we call appropriate sizing [Songs] i'' m gon na retire soon and also the first point we'' re gon na do is downsize our residence who passed away made you employer what do you indicate this is what we'' re gon na do we got ta scale down everyone downsizes right a great deal of our customers come to us in this dilemma as well as while downsizing is a word that the majority of people connect with retired life it additionally causes tension in a partnership when one partner wishes to downsize as well as the various other does not and after that if you have kids they'' re going to have a point of view also and this can wind up being a disruptive problem and abuse a partnership and a family members but there is hope since downsizing isn'' t for everyone or possibly there'' s reasons that scaling down doesn ' t help you and we'' re going to cover that in a few mins you recognize if you'' re not in contract with your partner or you wear ' t have the moment or cash or your residence is in fact the best size for your new life then this video clip will provide you brand-new hope and also motivation for what we call right sizing and remain throughout where we'' re mosting likely to share 10 fast inexpensive modifications that can aid bring life back to your existing home all right so today we'' re going to go back from the concept of marketing your present house and offer you some choices to consider as well as stay in that house however before we go additionally we intend to present ourselves specifically if you'' re brand-new to this network my name is mark rollins and also i'' m jody rollins and we started retired life transform in 2017 not just for us however, for all of you and the 10 000 individuals turning 65 daily now we put on'' t concentrate on any of the monetary aspects of retirement but rather way of living health partnerships and even more as well as if you'' re new here please strike the subscribe switch as well as the notice switch so you'' ll get alerted when our videos come out currently if you do wish to downsize we did a fantastic video clip as well as the link to that will certainly be listed below and also that really comes with a worksheet to help you undergo that but today we wish to speak about not downsizing remaining in your home we in fact downsized what we underwent a procedure that we discussed in the first video where we in fact had to clean up the entire home bent on offer it so we eliminated clutter we got rid of furniture we made one of the rooms a den painted the entire residence throughout right what else did we do and i was considering your home believing to myself with all that work done honestly why do we desire to sell it yet inevitably it made feeling for us to do so let'' s talk about the factors why marketing your present residence and also moving might not make sense and also the initial thing is you could not like i didn'' t want to you could not intend to leave your current location your pals your household or your volunteering neighborhood well the various other point is your home may really be the best size for this stage of life sure the children are left and you have some extra bedrooms yet you don'' t desire to move into a smaller residence now you wear'' t intend to relocate can be difficult can be stressful and you actually enjoy having a little bit of a yard to do some horticulture possibly doing some home repairs there'' s sufficient space for good friends to check out or grandkids to remain over so perhaps your existing residence is simply the best dimension and some customers come to us with this factor monetary factors to consider possibly your mortgage is paid off as well as your home tax obligations aren'' t so poor as well as your financial coordinator thinks it makes good sense to remain where you are that'' s a factor not to sell yeah and another factor not to market maybe your residence has an apartment either in the cellar or upstairs that you'' ve been leasing for a while as well as your strategy is to move into that as well as offer this house to one of your children later on or sell it to one of your schools or market it to among your youngsters however it offers you a choice to keep it and also then actually have the ability to obtain usual contract with your kids that you get to remain there or downsize one day in the future however today your home is fine the fact is however everyone will either scale down or be downsized at some time in our life so let'' s dig into some concepts that we developed to allow you to remain in your house yet make it seem like you ideal dimension currently listen this will take some work and also it might seem like at times you wish to quit however we desire you to pay attention meticulously as well as take a couple of notes and also imagine the possibilities for you and your family members in your existing space as well as don'' t neglect at the very end of the video clip we'' re going to share 10 quick solution suggestions to help you make your house really feel better and one that you actually want to remain in so let ' s state you ' ve made a decision to remain for whatever the reason and also you and also your companion get on the exact same page right sizing to us implies beautifying your home inside and also out imagine that you'' re gon na offer your house so it needs to be repaired up and also by the time you'' re done you will have a brand-new updated home that you won'' t want to leave so allow'' s begin outside so perhaps because you ' ve been functioning so hard for as long your shrubs and also your yards and your total building actually feels thick tired as well as looking for a redesign yep there are some straightforward things you can do you know you can trim the shrubs you can pull your weeds you can include some compost and absolutely nothing looks far better than a crisp side around garden beds right you can in fact declare part of your backyard if you'' re industrious as a veggie yard or maybe acquire a bench as well as stick it in the corner or make a small fish pond or water fountain in area of emphasis since you have more time believe of your property as an oasis as well as an area for you to truly invest your time as well as if you'' re not actually certain just how to do that employ a landscape engineer obtain a genuine plan and agree with your companion you'' re mosting likely to do this over 3 or 5 years once again put on'' t make it seem like a significant job with a whole lot of cash but do something with a designer that'' s expert and do it slowly what you intend to consider is visual appeal you wish to consider when you draw onto that driveway you feel great to be there you can'' t wait to walk the building and also obtain right into your home so let'' s relocate inside the house keeping with the theme of obtaining your residence all set to market if the inside has actually been ignored since of absence of time or wear as well as tear from the youngsters currently is a great time to spruce points up you can start area by space if you'' re doing it yourself or if you'' re ambitious you can employ some contractors and maybe simply to attempt it begin with one space a simple room a very easy room let'' s say you have an extra bed room as well as you intend to convert it to a den and usage or you have a den that you spend a great deal of time in with each other as a pair deal with that space do a simple light clean decrease the clutter but perhaps you recognize the carpeting as well as the furniture needs to be cleaned as well paint the wall surfaces in the ceiling do something to consider that room new life or go a step even more and also maybe get a new tv or set up a stereo so you have music or head out and get some comfortable light updated furniture and also possibly tidy the rug or think of a new rug and even peek under the rug to see if there are wood floors under there now if you do this one space it'' s going to offer you a preference of what can be made with the rest of your house it will certainly get you delighted and also inspired to do even more you can additionally clear a number of spaces at one time you understand putting whatever right into a garage or a room make things go a little quicker we'' re not attempting to invest your cash yet working with a contractor will assist that and bear in mind if your strategy is to remain right here for 20 or thirty years it makes feeling to do this because simply think of it annually that you'' re in there longer as well as you don'' t update it it just gets really even worse and if you require suggestions what is it pinterest is a fantastic location to go or house to get ideas set a budget plan a yearly spending plan each year to start to prepare out what adjustments you want to make to your house below are a few other suggestions that concerned us from a couple of clients you understand in your kitchen appear some brand-new counters or paint those dark closets a light color also acquire a couple of brand-new appliances or tidy every one of your cabinets in and out and also certainly contribute what you'' re not utilizing we have clients that the other half is a fantastic cook been cooking for life as well as enjoys it she headed out when they retired as well as bought a brand-new stove and also um cooktop the the original ones resembled 40 years old she has these new stoves down and also she really has an entire new feeling and motivation to prepare currently to ensure that that'' s a good idea to do now if you have an extra bedroom in your house let'' s say the kids have actually vacated claim that as a residence office or one more den you can constantly put a take out couch in there we have among them in florida and also it'' s still it provides you one more room to go to yet it additionally permits if if children or grandkids intend to rest over there'' s a bed there things is to go back right into your home as well as think of the modifications you can make so it can really feel to you like a brand-new house and thank you for staying till completion so below'' s what we promised 10 quick changes you can do to your home that are reasonably economical the first thing is tidy all your wardrobes every one and also i'' m telling you when you take one closet and also claim we'' re going to clear everything out we'' re mosting likely to put right stuff back because we want and also everything else gets donated the sensation you get is unbelievable it is so the very first point is to clean your closet as well as the second thing you discussed which would be contribute it'' s a no-brainer it constantly makes you really feel excellent donate what you don'' t need because various other people do require it the third point is as well as this one might appear foolish but we'' ve done it a number of times you'' d do it every week if you might alter your kitchen area cabinet handles just the knobs as well as it is entirely change your kitchen just by changing the handles currently lighting in your house maybe you have heavy drapes possibly you put on'' t actually have intense light bulbs or lots of lights include some even more modern-day lights pull down your drapes let some natural light in it'' ll make the world of distinction as you walk your residence the 5th one is a large one for me purchase on your own a new bed mattress when is the last time you got yourself a new cushion rest is so important your old one possibly requires to go the mattress firms say what every eight or 10 years you require a new cushion if your own is 15 or 18 years old you absolutely require a new mattress the other point you can do is you understand in addition to the new cushion get some brand-new bed linen and bed linen for your for your bedroom brand-new towels in the shower room whatever it is again an extremely reduced price change however it really feels brand-new so the 7th point that you can do is just merely reposition your furnishings in your living area or your den or your eating location or your cooking area simply relocate around take an entire makeover at every one of those rooms and move type of factor and shoot as well as move furnishings around currently the other thing you can do is participate of your garage or your cellar or an extra room as well as transform it right into a home fitness center i'' d discuss an office before however you recognize in retired life we talk a lot regarding physical wellness so as opposed to mosting likely to a gym placed the fitness center in the residence so i'' m gon na return outside and just enhance tidy up your property outside think visual allure as well as that'' s number nine and number 10 is jody ' s favored she ' s so efficient this we have candles around our home as well as when jody you recognize late afternoon she lights all the candles in the kitchen as well as the den she likewise has this scent maker i desire i understood what the name is you bear in mind i put on'' t yet it simply it simply pumps out put water in there a little drops of oil and it simply makes your house smell so fresh well we also have a pet dog as well as i never ever want you to come into our residence and say oh god you have a canine so those are ten fast repairs we wear'' t want you to feel secured into needing to scale down but if you'' re going to stay where you are do something to make the house that you stay in feel new and fresh do some of the 10 quick fix tips and enjoy your fresh upgrade at house as well as if you enjoyed this please show your pals and please subscribe by clicking the subscribe button it truly means a whole lot to us to obtain this message bent on as lots of people as we can as well as ultimately join our complimentary facebook community the link remains in the notes below thanks for paying attention and also we expect being with you once more

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Retirement Community Arizona

3 Retirement Purchases People Regret – Retirement Planning

user 0 Comments April 17, 2023 Retire Wealthy Tips for Retiree's

Music]

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Retirement Community Arizona

user 0 Comments September 20, 2022 Retire Wealthy Tips for Retiree's

Hey everybody welcome in on this snowy snowy Wednesday wherever you’re joining us from let us know where you joining us from today hey everybody welcome in to the investing in real estate show today we’re gonna have some fun talking about how to retire at 40 how to retire by 40 Sean says hello from Brooklyn New York how much snow are you getting out there Sean we get this massive nor’easter once again and once again so the kids are off school just I’m over it I am over it I know there’s gonna be people are there I’m right in here and say they’re there joining us from there out in California and they’re living living large yeah Aaron is running us from Miami Florida there you go Wong from Miami thanks so much rub it in rub it in rub it in everybody so we’re gonna get this show started in just about three minutes South Africa Indianapolis Moses welcome Pottstown you’re getting hit with some snow right now Matthew Bishop Lakeland Florida hey Matthew yeah I guess California you guys are getting hit with some crazy stuff out there today too huh yeah they cancelled school last night I don’t know I you know growing up I don’t ever remember them canceling school like the night before did you guys ever have that growing up it was like he’d wake up and he would sit and listen to the radio and you would wait you know I was in Pennsylvania I would be all be waiting to listen for our school if it was canceled I’d be in one-hour delay a two-hour delay and you were hoping that they would cancel it but I never had the night before they send out a text message letting you know that hey your school was cancelled and that was never the case for me never never did you do all right we’re gonna get started in just a moment here it’s gonna pull up this today we’re gonna talk about how to retire by 40 and we’ll start here in just about one minute one minute one minute Jerome aramid says hey a guy you talked to me more than two weeks you never came back to me you can take care of this later I know you’re alive nobody emailed me the first appointment Jerome who did you talk to on my team let me know and we’ve got some people in from our team right here in the chat thread as well we can Mike you know a lot of times people will send follow-up emails it goes to your spam folder sometimes people when they initially signup for phone calls with our team they put in the wrong phone number and then they later writes it well I put the wrong phone number in and so our team will be calling and they can’t get ahold of you so I apologize for that and Rudy Rudy please check your spam folder please please please because our team is very good about follow-up and we have hundreds of clients around the world so I apologize for that you know because if someone sends you a PDF it might go right to your spam folder and then you’re like oh I never emailed me just check your junk folder and who are you talking to please let us know we’ll make sure we get you all squared away we have a waiting list for people to get on the phone with us for like a few weeks so I don’t ever want anyone to feel like we don’t get proper follow-up from our team that’s very important so I’ve got our team right now who is in our chat thread we’ll go through and make sure that we get you all taken care of so I apologize for that all right so we are live it is it is a.m.

And we’re gonna kick off the show after the show I’m gonna do you know to talk about this article talk about how to retire at 40 and then after the show we’ll kind of open it up for a few minutes of Q&A if that works for all of you and we’ll just kind of answer some real estate questions some of the things you’re struggling with you’re hoping to achieve and we’ll talk we’ll do that all right Forrest wants to knows are still owners software coming out for Morrison fest yes indeed in fact we’ve been working on it for for since like August it’s all custom it’s been a lot of tweaking we want it to just be perfect Peter Cook says I’ve had very good follow-up thank you Peter appreciate it and James Frederico o1r from our team is right in here he says hey Jerome I got you all reach back out to you and take care of you good good good all right so we’re gonna get started here and we’re going to talk about this in a second so first so again at the end of the show we’ll take some QA and we’ll do that as well let me just get this all dialed in we’re recording we got the audio up and running is everything sound ok guys you guys can hear me give me a thumbs up you guys are all good Brandon yes absolutely because some of those beat class properties you’re asking about the verb method absolutely because you know buying those 60 70 thousand dollar homes those the banks love they’re able to do you know easy refinances on those because there’s easy comps to pull in the neighborhood because there’s retail sales so I would stay away from like the 3040 thousand dollar stuff if you want to really do like a solid brr-brr method stuff if that’s what you’re looking for all right sounds good alright so we’re gonna get started all right all right and let’s get this show started all right today on today’s show we’re talking about how to retire by 40 a news article from the mainstream media it’s kind of total garbage that’s today’s show let’s dive into it hey everyone I’m Clayton Morris longtime real estate investor founder of Morris invest if you’re new to the channel thank you so much for joining us and subscribing I hope that you’re a subscriber because there’s where we talk about passive income building legacy wealth for you and your family that’s the goal right and the vehicle that we use is buy and hold real estate but I don’t care about the real estate right I don’t care about the four walls and a roof I just bought 15 houses this week that we’re about to rehab okay I don’t care what they look like because once we get them it doesn’t matter what I’m buying as a tax shelter and that’s what you should be focusing on buying a tax shelter that’s what this show is all about on today’s show I want to talk about how to retire by 40 and I want to preface this by saying that I got this from an email from a listener a viewer of our show who is getting involved in real estate investing Jesse Daley sent me this email and he said hey Clayton I hope you’re doing well man I thought you’d find this article interesting especially how the writer literally doesn’t mention anything about investing in real estate there’s only a one quick mention of a condo adding to net worth and nothing else in this article I’m so happy that your podcast teaches people how to truly invest properly and retire by the age of 40 this they should have interviewed you for this article so thank you Jesse I promised I would give you a shout out here on the show and I want to go into this article so again I have lampooned some of these CNNMoney articles over the past few years have done shows about these things because I just find them ridiculous I find them ridiculous that they’re telling people to invest in their 401k and then that’s the way that you build retirement that’s the way that you’re able to retire by 40 years old I mean how many people are you know you just like a show of hands you’re listening right now how many of you think you could actually retire by 40 years old just with your 401k of course you can it’s ridiculous the average 401k retirement in this country guess what according to Time magazine is 90 thousand dollars can you retire on that no way so I want to go through this article because it’s a lot of fun and Jesse sent it to me so these are tips from CNN money on how to retire by forty three proven tips three proven tips so let’s go Chris reading isn’t your average retiree he said goodbye to his working years at 37 and is now financially independent living his life on his own terms that’s great now he had 4500 dollars in debt and when he started working he got through all of that he finally found a well-paying job working cyber security took out a mortgage bought a condo and financed a BMW okay alright took out a mortgage on a home bought a condo and financed a BMW on our way to success but then he started to wonder is this all there is he finally said I can’t do this for 40 years in his late 20s he started searching for alternatives and he read the book your money your life by Joe da Menendez and Vicki Robin and he said look there’s other ways of becoming financially independent so he then felt that he had enough to live the rest of his life on his savings and investments without having to work again it took two more years of showing up the cubicle for him to be sure than a 37 he finally walked away so what did he do okay here were his strategies here where his strategies for becoming financially independent and retiring at 40 years old number one save more save more okay so his strategy according to the CNN Money article is cut he cut back on going out to dinner and he cut back on buying lattes so he just started saving more really so let me get this straight that’s the way that you can sustain yourself for the rest of your life by retiring at 40 years old from your job it’s just having enough in the bank you think that you’re gonna have if the average 401k retirement is ninety thousand dollars can you really live the lifestyle that you want so now you’re cutting back on dinners in order to save some money you’re not buying coffee so what Natalie and I’ve talked about here on the show repeatedly is the idea of not having to shrink your lifestyle why not find out what your freedom number is using real estate find out what your freedom number is and actually have enough passive income every month coming in the cash flows you’re creating a tax shelter for yourself and enabling you to live the life that you want so you can’t go buy a latte I find that ridiculous you know David Bach wrote about that in his book the automatic millionaire a years ago and look if you’re $40,000 in debt yes maybe not buying a five-dollar coffee every day is probably not a smart strategy you know also if you’re a smoker you know spending ten bucks a day on cigarettes or whatever it’s probably you know not a smart strategy if you want to claw your way out of debt I get that part of it but as a way of sustaining yourself and retiring at forty years old just saving more savers are losers that money in a bank account is doing nothing for you what about buying performing assets that are actually producing cash flow I mean come on so when he says look where people get into trouble with savings that they think they have to use reusable toilet paper and eat chicken broth but real basically you just you’ll never spend zero dollars find a level of living that you’re come with and work on earning more without increasing your expenses so he’s just saying earn more save more cut out lattes and you can retire at 40 I don’t buy that for a second number to earn more okay that’s his second tip earn more great so let’s save more and earn more again a paycheck job the tax code is written for wealthy people the tax code is written for entrepreneurs who own businesses who own real estate that’s what the tax code is written for it’s not written for a w-2 employee so earn more so what he says is your actual jobs only part of your work in order to earn the kind of money where you can live on only half or less of your salary so take that extra money socket away that’s what he’s saying so work harder right work for a paycheck get taxed as like in the highest tax bracket by the federal government right because we know that paycheck employees under the new tax code or hurt the worst he says this career-boosting work can include earning advanced degrees oh that’s great so his other bit of advice on this is go out and spend a hundred thousand dollars on getting an advanced degree so go get your master’s degree that’s only what a hundred thousand dollars that’s only a hundred thousand dollars right just go get it a master’s degree so that’s smart so save more earn more by spending more on getting an advanced degree or certifications and then that way you’ll have people who will look at you more favorably in the office and be able to elevate you higher that’s great so it’s important understand the weak areas and he says look I finding mentors okay that’s good yes definitely finding mentors as a very smart move finding mentors who can help propel you and then number three he says invest more so he says the most powerful mechanism for investment right now it’s built into their job it’s the 401k invest in your 401 K and a two or three percent return contributing at the level where you get the employer match is a must and that’s your biggest benefit and that’s how you can retire by 40 that’s the article unbelievable so okay ridiculous right that’s how you could retire at 40 no no that’s not how you can retire it 40 and that’s not how you could live comfortably and live the life that you want and be able to produce legacy wealth for your family for the rest of your life so he’s now retired he’s living off of savings but he’s got no assets that are actually performing for him for the rest of his life he’s got a V BMW that he bought financed and he has a mortgage on a condo that he lives in he has no performing assets that is not financial intelligence any way you slice it wouldn’t it have made more sense instead of saving that money while he was working for that cybersecurity company to take that money and invest it in real estate by a performing asset that cash flows that’s how you control and move your family forward that’s how you can build true legacy wealth for you and your family but actually taking money and buying a BMW buying a liability remember all you need to remember is if you’re buying liabilities a liability is something that does not produce cashflow now if he bought that BMW and used it as an uber driver that was producing cash flow that’s a different scenario or if he rented out that BMW that’s a different scenario but I love these I love these articles and again this is all sort of couched around the idea of the mainstream media right the mainstream media wants you to believe that a paycheck employer job is the way to go that getting a 401 K having their company sort of automatically do it for you because you’re too dumb to do it yourself have them handle it have them streamline it and that’s how you that’s how you have a strong safety net we’ve been trained to believe that being secure is having a paycheck job you know again I come back to the I keep seeing this commercial and I’m sure so many of you have seen this commercial over the past few weeks I saw it first during the World Series and they continue to run this stupid thing where it shows a couple you know they’re in their late 60’s and they’re sitting there with a how it’s a Merrill Lynch advisor and the Merrill Lynch adviser says well it looks like the plan worked and you’re gonna be able to have that retirement you wanted and I looked at you look on the iPad app that they’re handing to the couple and he’s like honey we did it we can do it we can live that life we wanted retirement and it shows that their income is enough they’re gonna have about seventy thousand dollars to work with like if you look at if you actually look at the numbers on that screen seventy thousand dollars so now they’re almost at retirement and then the next clip it shows them in a boat with their granddaughter right there sailing off into the sunset like some small little boat with their granddaughter and the little girl says aye aye captain you know and she she’s driving the boat so this is their retirement they finally did it right they had a wait till they’re 70 to buy a boat and to be able to sleep in and spend a little bit of time with her grandkids be all because they had their month their money managed by a financial advisor that was taken out big fees and investing in a stock market and not investing in real estate and cash flowing assets so there you go that’s my frustration there you go that’s my my little my little two cents my little rant about these types of mainstream media articles and when you see them on TV just roll your eyes think about it for a second saving more earning more get an advanced degree spend $100,000 on a master’s degree and then use a 401k that’s how you’re able to retire at 40 that is total garbage that is total garbage unless maybe the guy wants to go live in like Thailand by himself with no kids and he wants to live like in a hut somewhere for the rest of his life and he doesn’t care about actually having any income or cash to be able to buy anything or any food or live the life that he wants I find it to be total garbage I’d love to hear your comments and your reactions to this please send them to us and I really thank you so much so that’s gonna do it for that and thank you so much for subscribing to the show I really appreciate it this is the investing in real estate show you can please subscribe share it with your friends and and you know please go out there take action become a real estate investor because I believe it’s the number one way to build wealth we’ll see you next time everyone all right now with that that’s the show so anyone who wanted to get just the shortened version of that but hey now we’re gonna open up this agree to some Q&A here in the show we got so much so I saw so many chat threads coming through here asking questions alright so fire them up here alright alright Joel says I’ve also had an email a few times hit reschedule my call but no response and said ok Joel no worries we’ll get you all straightened out I apologize like if people miss their phone appointments cuz like I said we Deanna with our team we have like calls are booked out I think about two weeks and so if we call them like goes to voicemail and then we’re trying to reschedule it so we really try to make sure we can get on the get on the same get on the same on the same page Jinger I’m sorry again what’s going on Jinger we’ll get to the bottom of this so I’m gonna make a list of anyone who didn’t get a call back so I apologize alright so can you guys tell me Arum says Glen and Nicole from your team have been great awesome ok so we will dial some of the stuff in ginger and I’m sorry I will get some of these people on your on your team to make sure we get it all taken care of thank you guys let’s see all right you know I’m glad you’re not upset no I just you know we if sometimes emails get back and forth and we’re trying to make sure that everyone gets taken care of okay are Tuffle get you back on your property okay let’s the ad tapper says what do you think about joint ventures they have the money I do appraisals marketing and brother does the renovations hey jayvees are great right you need to build a great team for real estate investing that’s very important you have to have a great team to do real estate investing well Kelly just uh Kelly Cheatham says I want to hear more about your program great just booked a call with our team Kelly and Morris invest comm we’re doing some great things and I’m really excited about some of the new properties that that we purchased that we’re about to do we’ve already designed our contractors to dive in and start rehabbing see Charlie 18 says our new Hara Sean wants to know one of the price of the new house is being built our new houses the three-bedroom two-bathroom right around seventy seventy thousand okay Charlie eighteen I’m gonna answer this question how does it LLC save you on your taxes on your rental how does it LLC save you taxes on your rental properties a lot of the stuff I’ve been reading times about pass-through income I never thought I thought that that was taxed the same way as a sole proprietor yes however remember that under the new tax law as a pass-through entity as a pastor entity you’re now getting an additional 20% deduction 20% and remember when you have your your properties in an LLC you’re being taxed as a business and you’re able then to depreciate spread that money over all those other your w-2 income and those other things so I’ve just an all series of videos on understanding tax shelters and remember what you’re buying as a tax shelter so forget about buying real estate you know I have talked about Lane I like for repairs so repairs add to your tax shelter helps mitigate your overall cash flow because remember what you’re buying in the beginning in a 3-stage is a real estate investing right buy own and cashflow what you’re buying in the beginning you’re adding to your net worth so I don’t care about the cashflow necessarily until years later but you’re buying and adding to your net worth you’re creating a tax shelter for yourself you’re able to mitigate your w2 income you’re able to offset all of those things so I would love to hear what you guys thought about today’s show and the article please let me know I’d love to hear you which you you know what you thought about that Kelly are speaking of the computer program Oh Kelly yeah we’re building a personal owner portal for our clients that the software I mean it’s just it’s and make it much easier so that we don’t like our team doesn’t have to send out Purchase Agreements it’ll be right there because we have so many clients it like we’ll have like three or four clients and want the same house and so a little like yeah give you a purchase agreement and it’s kind of like first-come first-serve and then our team has to send out a purchase agreement wait till it’s signed and all that BS so this will make it very easy for them to be able to click right on it and then open up DocuSign and be able to do it and pretty great Ryan Millie says okay what are the mechanics after purchasing one property to purchase another property or two and repeat the process over and over again where does that money come from well ideally it could come from a bank right or it could come from private money it could come from you know we we talked about a company that we work with called fund and grow less you know if you go to our if you go to our website Morris and vest com slash funding you don’t pay them any money until they actually if they get you money zero percent Interest but why would look at okay so let’s just take the mechanics of that to answer your question so I would say you know buying like a sixty seventy thousand dollar rental property and then leveraging that right so maybe putting or or if you have the cash to do that right that ideally if you could come out of the gate you have the cash to purchase your first one free and clear that’s more of a B Class play you know that’s sort of B minus like 60 65 70 K place play that’s kind of maybe you know it’s transitioning up to sort of an a-class neighborhood and it you know coud appraised in a few years at 80 or 75 that’s the play right so buying that if you could buy that with cash right and then refinancing a pull some equity back out of that and then be able to roll that next amount of cash the bank just gave you into your next property into your second property and then into your third property a buddy of mine here in New Jersey started and did that on an eighty thousand dollar property he now has over two thousand units here our DNA and money when he started and he bought that first property that first property allowed him the snowball and all of these other properties and identity jjh yeah unfortunately JJ was said you purchase second property in Indy in November we’ll hopefully get an answer for you an update on where we’re at with the rehab and we’ll also make sure we connect you with the right management team if you’re having some issues you know we work with a 8 different property management teams so what gets you sort it out so just you know email our team you know the team you know our team at Morris invest email us we had a really really really unusually harsh winter that set us back about four or five weeks on construction this year with like a deep freeze we had stuff all the way through Michigan into Indiana down into Pennsylvania where we just had all kinds of problems Ryan you are absolutely welcome thank you so much Sean says you weren’t able to pull cash off the cards they got through funding to grow yeah that’s unfortunate we have literally funny grows enabled our clients to raise over 20 million dollars for purchases of real estate so I’m not sure why that person had an issue they’re very very good at walking you through step by step I just would say reach out to them and make sure that you’re working with them they they have a thing with gold money so basically they use the cards to buy gold and then you transfer the gold into cash it’s like a little bit of a few hoops to jump through but hey it’s 0% interest for a year you know hey beggars can’t be choosers right we were able to get a hundred and seventy six thousand dollars in cash because of them in order to purchase real estate so it’s an amazing strategy so again and you’ll save like five hundred bucks if you go through our website because we’ve asked them to do that for people who watch us and who listen to us so if you go to Morris invest com slash funding check it out it might not be for you if it is great just check them out you know I have a phone call with them Joe Joe wants to know what appliances do you provide actually I don’t do any appliances in our properties now that is to say if we move into some of the b-class properties we some we will sometimes put in a fridge and stove and things like that but far as a washer and dryer we have I made that mistake when I first started in Michigan I bought all appliances and found out that I didn’t need to that it’s commonplace that tenants will provide all of their appliances they will usually typically go down to a local you know like a little scratch and dent company etc or that’s where I bought my first appliances when I had my first condo in Florida I went to a local scratch and dent place they’re brand new that may have like a tiny little little scratchy scratch on the side and you get a great deal on a bundle of appliances so that’s what most client most tenants will do and then they’ll keep them for many many years so you don’t have to worry about it so Daniel wants to know what’s the fee for you guys to do investing for me there is no fee with us at all I know some other companies charge like ten percent all that stuff we don’t do that you’re just buying the house we just you know and try to get it all stabilized for you with property management team and cash flowing so you don’t have any additional fees you own the property free and clear Jimmy says how do you organize your banking system for your real estate business great question Jimmy you know we have a couple of podcast episodes Natalie and I do where we talk about how to run your you know your family business and finances for real estate investing if you want to check out the investing in real estate podcast you can do so and we have some of those episodes you know the short answer is that you want to have bank accounts set up for your taxes you want to have bank accounts set up for your LLC that owns your rental property and personally so I have LLC’s that own my rental properties those LLC’s have their own bank account so when the cash flow from the tenant comes in I Clayton Morris don’t touch that money that goes into the business then I can pull that money out but you can’t commingle money like you don’t if it’s a business that owns your real estate you don’t want that money coming in to your personal bank account that’s called commingling that’s illegal the IRS does not look favorably upon that so you want to do everything aboveboard making sure that everything is flowing the way that it should Bobby yes what’s the best way to start a property management team no cash but at the time and looking to help investors well I would say to start a property management company takes about a hundred and fifty thousand dollars I know this to be the case so right away to be spending one hundred and fifty thousand dollars to set everything up okay you’re gonna need you’re gonna need to pay for software things like rent manager appFolio those types of things you’re gonna want to hire an accountant you’re gonna want to hire an office manager you’re gonna need to hire leasing agent you also need to get a brokerage right you need to have a brokerage license to make sure that you can manage property so all those things cost some money so to start a property management company that’s what about that’s what it roughly costs and then about if you have more than 100 properties the rule of thumb is for every hundred properties or so you’re gonna want to add another human being to your to your company to facilitate those properties that came to me as a friend of mine who ran his own property management company those are the exact numbers that he used James wants so what’s the area oh it’s just on the website to find the gold funding option so just go to Morris and Vess comm slash funding it’s sort of a hidden page because we don’t like promote it but it’s there if you sign up like I said you’ll save 500 bucks once they get you the money you don’t pay anything until they get you the cards Peter said spoke briefly with your guy Justin have a self-directed IRA I was interested that was a month ago he was going to keep an eye out for a property and haven’t heard back Peter I will follow up with Justin or you can just you know feel free to reach out to Justin as well from our team because we we can set up a whole dashboard for you for the self direction so I’ll make sure that Justin gets back to you Peter I’ll have our team make sure we go through this comment thread to take care of it okay how can you cash out on a $40,000 property well so $40,000 homes are tricky because banks are lazy or appraisers are lazy so a bank is going to hire an appraiser to go in and they’re going to those types of properties they’re being sold every day to investors like I might buy thirty of them right but guess what they’re all off market so they’re not being sold on a multiple listing service like you buy a house for a hundred thousand right with a realtor and so when an appraiser goes to pull comps in order to appraise the property they don’t have any comps to work with the only cops they have are ones that are on the MLS the ones that they end up pulling end up being ones that are like foreclosures or pre rehab so you might have a forty thousand dollar house and you know it’s worth forty forty three forty two but they might appraise it at twenty because the only thing they could find that sold recently on that street was a foreclosure that’s not been rehabbed yet so you can’t you kind of at a crapshoot if you’re planning to do a refinance here’s my suggestion it’s just move up into those sixty sixty-five seventy thousand dollar homes and then you’re putting like you know then you’re able to pull almost like the full equity out of that house or close to it if the bank then cuts you a check for fifty fifty five great then you can roll that into your next property so I just would say told code don’t try to go super cheap if you’re planning on doing a refinance banks are lazy and you’re frankly just at the mercy of these banks you know I can pull up sales disclosures with hundreds of sales where the house is selling for forty three forty five but guess what the appraiser will not look at that and so then you’re at the mercy of like a foreclosure that’s on the Multiple Listing Service and unfortunately it’s it’s just difficult now we’ve had people who’ve done refinances on forty thousand dollar homes and you know like one of our clients recently bought one for forty three it appraised for fifty five but again it’s a crapshoot he could have just as easily had the appraiser come back and say you know well we think that house is worth twenty two so remember what you’re buying is cash flow when you’re buying that low and you’re trying for that high of are a lie you’re you’re sort of like the investor that’s buying 50 properties like that they don’t care about ever refinancing they just want the ROI they want the cash flow I hope that makes sense sure our Lara says I’ve got a shooter I think I missed it sorry zip past it Ahmad it’s kind of invest the United States if I’m not a US citizen yes you can you know just book a call with our team we have people I mean we have a lot of investors Canada and New Zealand all over the world who invest with us do I see Florida getting to California prices within 10 years seeing a lot of new construction and price hikes there in Tampa yeah a lot of those coastal areas you know Tampa those types of places Clearwater Miami of course I don’t see them getting to California craziness you wanted let me tell you a California story the reason it’s ridiculous so like the same house that I might do in Michigan or Indiana and then our clients would buy maybe like a 3-bedroom 1-bath in the $50,000 range right well there was a 3-bedroom 1-bath last week on the market in the bay area for $900,000 and guess what it was condemned it’s a condemned house selling for $900,000 in the bay area that’s California it’s crazy absolutely crazy Mario says I was thinking about buying houses in my name under a HELOC on my primary residence and then when I get to three to five houses to a portfolio loan and all three to five and an LLC is that okay yeah I mean but why would you need to buy them if you’re using a HELOC to buy them just buy them in an LLC now you know there’s no reason you should buy them in your own name at all ever buy them buy them in an LLC if you’re using the HELOC it doesn’t matter how you use the he lock key lock is cash right you could go out and buy a boat if you wanted to with your he lock the bank doesn’t care you’re just writing a check from your he lock so why not buy them in your own name now I’ve started buy them in an LLC today you’re using the he lock on your primary residence it doesn’t matter the bank doesn’t care what you’re doing with that money you just have to pay it back but I to me having a HELOC is one of the killer strategies I love a key lock on my primary residence I use it to buy properties all day long Michele says what are your thoughts on using quicken loans to buy a house I’ve never done it you know hey if you can get good rates and good terms from a bank to buy to buy a house great go for it I don’t see why not video teaching can you recommend a bank for a HELOC on a New Jersey property lakeland la ke Lakeland Bank we love them they’re fantastic smh ninja on the funding Grove fees no notice he you’re refinancing very quickly so you’re gonna refinance very very quickly by that fifty sixty thousand dollar home and then get it into a long-term 30-year note and you pay off the you pay off the zero interest credit cards and then you recycle them so that’s what fund and grow does they recycle and get you more zero percent and then you can just rinse and repeat that’s why it’s a great strategy so you’re not keeping those cards for you know with like you bought a house on a credit card for twenty years you’re refinancing it within that first twelve eighteen months and yes you can quit claim deed you can move a property to an LLC Kevin wants to know thoughts on an umbrella insurance versus LLC well that’s well I say you have both I mean I would definitely have insurance and also have your properties in a limited liability company the reason you have your properties in a limited liability company is so that people will come after you personally that’s the key right you don’t want people if tenant slips and falls because a handrail wasn’t fixed on your one property and this happened to a buddy of mine in Philadelphia he has a property and a girl was drinking one night she came home to the condo she slipped outside because the sidewalk had like this much of a differential and sued him fortunately you know he had insurance but fortunately the case got dismissed or dwindled down where he only had to pay like seventeen thousand can’t come out of pocket seventeen thousand to pay for this girl slipping and falling at his property because he had the property at his own name so don’t put properties in your own name if you don’t need to there’s no reason to forest so to have a bank you recommend for refine 50k rentals I guess it just depends yeah I mean there’s a couple you know State Farm actually the insurance company has a refinance program a national program Northpoint Bank all one word with an e at the end North Point also has a refinance program they’re a national company as well you could look into them Daniel says how do you tell if a property is a B or C class that’s a great question I’ve got a whole video series here on our YouTube channel about how to understand that so you can if you want to look that up right here on the channel it goes more deeply into that but the short answer is an a-class neighborhood I like to avoid an 8 class neighborhood or those two you know two hundred three hundred thousand dollar homes two-car garages maybe they have a swimming pool they’re in the best neighborhoods I stay away from those as an investment property because you’re gonna have the most moving parts that break you’re gonna have the most entitled tenants that cause the biggest headaches and cause you the biggest problems so garage door openers that break garbage disposals that break multiple heating and air systems that break you know avoid those those also have the most volatility those tend to be the areas where those in a big recession lose their job the a-class neighborhoods we saw that across the country right these a class neighborhoods where people lost their jobs and all these houses went into foreclosure and people couldn’t pay their rent or the value plummeted significantly so let’s say they’re renting it from you for $3,000 a month in an a-class neighborhood and everyone loses their job all around that a class neighborhood now the rent is you know you’re gonna have to go down like 20 2022 hundred a month or even 1800 a month we saw that in Manhattan right people renting Manhattan apartments for thirty five hundred bucks a month the recession hits and guess what all these Wall Street people lose their jobs etc and those went down significantly you could rent a place in Manhattan for eighteen hundred a month instead of the 35 that you could before the recession but guess what those C class neighborhoods say the same those C and B class neighborhoods roughly stayed the same it’s consistent cash flow those are the people that tend not to lose their jobs those are the people that are working blue-collar b-class is kind of moving towards an a-class it has better schools slightly lower ROI but I’ve been buying a lot more B class properties lately personally because you know when you get to a point of having find enough cash flow you really want to start thinking about buying those more expensive B class because you’re creating more of a tax shelter for yourself you’re creating that bigger spread that bigger tax shelter and you’re adding to your net worth more significantly so but C and B are my favorites so I’ve been a lot of C and I’m starting to buy a lot more B yeah lisa says that’s why I like condos no outside maintenance but then I don’t like the associations right I do not like HOA fees and I’ve got a whole video on HOAs because HOAs honestly you’re sort of at the mercy of these people I mean you’re literally at the mercy of these people and you never know when they’re going to decide to change the bylaws and make it so that you can’t rent the place or they’re gonna hit you with a big roof assessment you’re gonna have to pay you know $5,000 for a new roof on the property you have no control over that so homeowners associations I’m not a fan of Daniel we don’t we don’t have a number for you to call us because we want to be able to schedule it with you so just go to our website click on the schedule a consultation button you literally answer like eight questions like your first name last name best email address to get a hold of you make sure you type in your phone number correctly and then we just ask you a few quick questions like how many properties do you currently have what are your goals and then you pick on the calendar the time that you want to schedule a call with us it’s very simple so it’s up to you you know that you got the kids from to p.m.

We don’t write so we want you to pick the time that best serves your needs it’ll go on your calendar we’ll send you an email reminder about ten minutes before your call and we’ll jump on the phone with you and talk to you for like thirty minutes Chad boys wants to know how is Capp West you know I heard good things about them years ago but then I think I heard things kind of fell off and I haven’t really actually heard many people using them so I don’t know I’ve never used cap West what if you want to live duplex a class neighborhood your thoughts well Rodney I mean some few if you want to live in the property that’s up to you right because that’s a different animal than investing in a property but if you want to live in a duplex than in a class neighborhood great you buy it I would rent out the other side so that they’re paying your mortgage that’s an investment right that’s an investment property in a class neighborhood so you know go for it you know just a matter of whether if you’re in an a class neighborhood are you likely to have a higher turnover on the rent because people want to have their own single-family home they might not necessarily want to split a house with somebody if they’re in a class neighborhood you know when I was younger I was fine kind of having a shared wall with somebody but now that I’ve got three kids and I’m an adult there’s no way I want to share a wall with somebody else you know I want my own place I want my own yard what do I think about a land trust well it’s funny you mention that as our tax accountant thinks that they are a total mistake so I do not do anything in the land trust sam says I spoke to Glenn a few minutes ago awesome

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user 0 Comments September 9, 2022 Retire Wealthy

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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