“How To Plan For A Prosperous Future In A Post-Pension World”
Are you concerned about your financial future?
Are you scared that Social Security will not be there for you?
Are you NOT covered by a traditional pension at your employer?
If you answered yes to each of these questions you have a reason to be scared about your financial future. Here are some facts—
Today, for an average couple aged 65—there is a 48% chance at least one of them will live to age 90! a 6% chance one of them will live to age 100!!! (Source: 2000 Actuarial Tables)
The Social Security Administration predicts that it will go bankrupt in 2041!
As of November 2006, Americans’ Savings Rate is minus 1%!
The biggest danger as we each plan for our future/retirement is “will we out-live our money?” For couples retiring today at age 65, their money must last at least another 30 years!
Imagine 30 years from now, how long we might live in “retirement”? My wife and I are in our mid 30’s and we expect that our money might have to last at least 40 years! Thirty or forty years is a very long time for money to last the traditional way in IRA’s and 401k’s. Plus, if you retire during a Bear Market, you may run out of money very quickly. Remember what happened in 2000-2002?
So, how can you plan for a prosperous financial future without a pension or Social Security to rely on?
I believe the answer is real estate investing!
To learn about the 11 benefits of real estate investing, please click here
Benefits of real estate investing
The HUGE power of leverage and OPM (Other People’s Money)—Banks and Mortgage companies love to lend money on real estate! By using their money your return on investment or ROI can easily reach 25%. And this does not include any appreciation gains! In fact, I can show you how your ROI can be > 400% annually with very little risk!
Can replace LOST pension or Social Security income--Provides you with a check every month (rent) WITHOUT decreasing the asset’s value, unlike an IRA or 401k. Thus, minimizing your risk of out-living your money! (This is critically important once you are retired!
2 amazing tax benefits—One benefit allows you to defer paying capital gains tax for your entire life! If planned properly your heirs will not have to pay any capital gains tax either! The second benefit can reduce your taxable income and thus your tax bill; thus increasing your monthly cash flow. (Call me first before calling your tax advisor as your tax advisor may be unaware of these 2 benefits.)
More predictable than stocks—Can anyone predict with accuracy which stocks will be the best to own in 5 years? NO! But, real estate can be predicted. How? Follow the jobs and migration of people. An economy that is creating good high paying jobs will create strong real estate appreciation. You combine that with an area that is a highly desirable place to live like Denver and strong appreciation is possible. E-mail me or call me about my 2 favorite areas in the Denver metro area to be buying real estate in
Peace of mind--What was the largest decline ever percentage wise in Denver real estate values for 1 year? Answer: 2.16% in 1988! What was the biggest 1 day decline percentage wise for the Dow? Answer: 22% on 10/19/1987! The stock market can go down 2% in a matter of minutes! So, which investment provides you with greater peace of mind?
Stability or less volatility—Since 1975, there have only been 5 down years for Denver real estate. Why is real estate so stable? Everyone needs a place to live! Everyone does not need to own stock. Stocks or mutual funds are a luxury. A roof over your head is a necessity! As I write this, the Blizzard of 2006 is howling outside my home office window!
You have control—What can you do to increase the value of your stock in a company? Basically nothing, besides prayer! But, real estate gives you some control as you can increase the value of your real estate with building or land improvements
Monthly cash flow to invest elsewhere for diversification—This will increase your peace of mind
Diminishing supply—The amount of available land we have to build on is constantly shrinking, which only leads to higher prices. Any growth control initiative will only further increase real estate prices. Boulder Colorado, is the poster child of this fact.
You don’t have to use your own money—Use your bank’s money and the money trapped in your house underneath your mattress. You may have over $100,000 trapped in your home.
Will allow you to catch up on your retirement savings quickly because of the cash flow both today and in the future. Not to mention, the future appreciation potential of each property. Based on the last 31 years each property should double in value about every 10 years!
To see a real world example and the POWER of just 1 property, please click here
The Power Of Just 1 Property!
In my real estate investing classes I reveal how just 1 property can make an AMAZING difference in your financial future! This property is a 4-plex in Englewood that sold for $375,000 and rents for $3200 a month currently. With just 10% down this property would generate cash flow of nearly $600 a month before taxes!
On average since 1975, Denver real estate has appreciated 6.92% a year. Nationally, median rents have increased by 5.31% a year since 1972 according to HUD.
Now, imagine what happens over time if you re-invest this monthly cash flow back into the stock market for diversification. Since, 1950 the S & P 500 has provided an average annual total return of 11.9%. Here is a sampling of your potential financial future—
10 Years From Now
Property is worth $732,000
Investment account balance $312,000
Monthly Rents $5,368
20 Years From Now
Property is worth $1.4 Million
Investment account balance $1.5 Million
Monthly Rents $9,006
30 Years From Now
Property is worth $2.79 Million
Investment account balance $6.34 Million
Monthly Rents $15,109
(Please realize this is based on long-term market averages for real estate values and rents and the stock market. My calculations do not take into effect taxes or investment costs. Your returns may vary.)
In 30 years, would you like to own an asset
worth nearly $2.8 million?
That is producing monthly gross cash flow of over $15,000 a month?
Plus having an investment account valued
at over $6 million?
This ONE property by itself could be your
entire Retirement Plan!
This is the POWER of real estate investing! All with one $37,500 investment! And you don’t need $37,500 in the bank to buy
this investment!
If you would like to view my spreadsheet from
my above example, please click here
The ABC’s of Real Estate Investing
I teach this basic “how-to” class occasionally for consumers and real estate agents. This class is designed to help you see why you want to own investment properties; but also how to manage them and how to build a profitable real estate portfolio for yourself.
If you would like more information on this class please call me or e-mail me. Also, I will keep updating my website with more information for you on this topic.
Also, feel free to e-mail me or call me for a No Obligation Consultation.
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