Friday 3 April 2015

A SIMPLE RETIREMENT PLAN THAT YOU CONTROL

By: Mark Frentz
www.akerahomes.com
mfrentz@akerahomes.com

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The Regular Person's Way to Become Very Wealthy

If you owned even one suited rental property in Calgary that does not have a mortgage did you know it easily generate about $2,000 each month after all expenses (calculated by even strict standards)? What difference would it make to you, your retirement, and your family if you owned 5 of these properties when you decided to retire. It would be the equivalent of $10,000 each month in your pocket! Would this be enough for you to enjoy retirement for the rest of your life?

Real estate is a way many families have become wealthy without having to take on a ton of risk or even worry about the management of these properties. I discuss risk in many of my posts and have definitely talked about having others manage a property for you. Today I simply want to focus on the fact that a 5 income generating property portfolio is something most Canadians would be very envious of. It actually is a lot simpler than most people believe as well.

The Steps

In order to accomplish this I would strongly suggest the first step you take is not to purchase a property, but rather learn more about what you are doing (I assume that is why you are reading this blog post). Beyond little tidbits here and there in blog posts you may want to look at taking a real estate investing course. My mentor and good friend Ken Beaton offers courses like this (he actually has a course titled "5 Homes to Freedom"). Another way to learn how to do this on your own is by partnering with someone who already knows how to safely invest and manage a portfolio of properties. I cannot speak highly enough about a good partner to join with because you will learn, by experience, exactly how someone handles potential risks and problems and deals with property managers well. If you would like to learn more about partnering with someone who already invests and understands how to mitigate risk and manage a portfolio you can call me at 587-315-6433 or 1-866-400-6767.

The second step is simply to take action. Work to find a property that matches the criteria you have set up (if you don't know what kind of criteria you need to think about please refer to step one: education) and purchase a property, or two, or however many you can afford. The beauty of purchasing real estate is that you really don't need an incredible amount of money to do so. For just $50,000-60,000 you can purchase an excellent property that will pay you back hundreds of thousands of dollars over the next 4-5 decades! Again, there are ways to do this will even less money up front. Again, it's best to be educated on how to plan for success by learning from others who do this.

Lastly, have a long term plan in place for how to take care of your assets in your retirement. Some good questions to ask yourself are: 1) How can I maximize the amount of money I can save in taxes by how I structure my company? 2) Do I have children, and if so, do I want to pass my portfolio down to them without them having to lose some of the portfolio to pay my estate taxes? 3) Do I, at any time, want to purchase real estate in the US?

Final Thoughts

Usually when I sit down with a family and discuss their plans I am quickly able to show them some creative ways that fit their plans and allow them to make a significant amount of money in retirement by simply taking some time now to plan (and without finding another 2 part time jobs to come up with the money to do so). One major difference between people who are wealthy and those who aren't is that wealthy people typically are good at making and following plans. Ask yourself right now: Do I have a solid plan for retirement? If so, am I following my plan? I will leave you with a quick challenge to do some homework on your own. I challenge you to purchase a few Forbes magazines or do some research online and find out how most wealthy people become wealthy. This is what I believe you will find. Among the wealthiest people in North America the large majority of them are business owners (or they inherited money from business building parents like the Walton family), you will also discover that there are very few wealthy people who have made money from purchasing stocks in the stock market (the big example would be Warren Buffet, but it is difficult to find a second example) because those who become rich from stocks are those who sell stocks to people like you and me rather than playing the market, the second largest group will quickly be seen as those who built a real estate portfolio from scratch! Here's another interesting challenge... Out of those who have made a lot of money by building a business do you know how many park their money in real estate to both keep it safe and help it grow even more? Last challenge: Find out how many people around you have become wealthy by investing in mutual funds. If there is even one person you can find, ask that person how much money they have invested in mutual funds and you will quickly discover that if you had invested that same money in real estate you would be able to have a much larger portfolio than 5 homes by the time your retire.


Here's to your future of risk-averse investing!

If you would like to learn more about investing in real estate please contact me at the email address listed at the beginning of this article or go to my website at: www.akerahomes.com/investing-in-real-estate.html

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