It'' s a very exotic and gorgeous, it ' s very cost effective, and there are a whole lot of foreigners living there for that reason. You ' ve obtained an actually reduced price of living, an actually wonderful environment that ' s really mild year round. There ' s a whole lot of different places to live, there ' s a whole lot of selection, and it ' s likewise truly safe.Congratulations, you ' ve made it to the end of our trip.
Hello, I'' m Thomas! Good life! You'' ve functioned difficult and also conserved hard all your life, and also now is the day you can choose just how you desire to spend the rest of your life.
real-time gladly ever before after? Are you totally got ready for what'' s ahead? Well, you can quit worrying since today I'' m mosting likely to share all the tools you need to delight in a pleased, hassle-free retirement! let'' s start! So just how do you understand if your future retired life will be protected and also effective? In order to address, you must comprehend what is holding you back. Canadians feel stressed out concerning retirement for 3 reasons: 1. They never ever think of retired life preparation 2. They put on'' t have a clear monetary technique 3. They concentrate on assets rather of earnings Well. Allow'' s start with reason 1. They never ever think of retired life planning. Canadians are so hectic with their present way of life that they just delight their days.While lots of people understand that retirement planning is very important, it ' s not immediate for them. It ' s like wanting a retirement angel to exist At the age of 65, an angel turns up as well as gives you your pension plan. Yet this only existed 30 years ago when there were supposed defined advantage pensions, where 100 %of the pension responsibility was held by the company and also the government. In the very early 1980s, greater than 60% of Canadians had a pension plan; however in 2011, just 18 percent were covered by a. assured pension. Simply 18 percent were ensured pension. The 2nd reason is that there is no clear monetary approach. With specified benefit pension plans vanishing fast, many of us wear ' t know just how much we ' ll be gaining until the day we'actually intend to take'it out. A lot of individuals today assume they can be whatever they desire. That merely doesn ' t job. Why? Due to the fact that there is so much uncertainty about future revenue and also spending.Research shows that two-thirds of Canadians put on ' t understand specifically how a lot they will certainly need to retire
, neither do they recognize for how long they will certainly need it. They have no plan to make sure that retirement income can keep up with the climbing price of goods and solutions. In the past, retirement planning appeared much simpler when the only choice was “when”; What occurred, these concerns need to be addressed. The 3rd factor is to focus on assets rather than earnings. Up until retired life “, we remained in the accumulation stage and also we concentrated on property development. Retirement is the contrary. Senior citizens need ensured lifetime revenue. We see ads for financial investment systems on TV, radio and social media all the time. The problem with most of these ads is that they just concentrate on gathering; they don ' t emphasize what you need to do for those collected cost savings when you retire. The ideal example is the RRSP, among the tools that assist Canadians save for retired life. I remember whenever I walked right into the financial institution I was constantly intrigued by the concept of an RRSP, I obtained an income tax return and also it assisted me save long-lasting. No one told me the repercussions of withdrawing cash in retired life. I didn ' t recognize that at age 71 I was compelled to take my cash out and if I didn ' t strategy meticulously it might trigger me to pay even more tax obligations! The day you retire, your strategy modifications. So how do we solve these troubles? According to guide,” Do not Fret, Retire Satisfied”, by Tom Hegna, there are 4 points that can truly assist you live gladly ever after.Point # 1 is what retirement defines you. For me, retirement is doing what you like without stressing regarding the costs. Simply put, it ' s economic freedom. For a single person it indicates throwing away 12 hours a
day; but for an additional it implies circumnavigating the globe 5 times a year. Every person has the way of life they desire, as well as the price of each way of living is various. The writers suggest three stages of retirement. The first stage is to appreciate the vintage rapidly. It ' s the early days of retirement when you go playing golf, you play tennis, you take a trip and you appreciate your retirement and after that the sluggish years. A slow-moving year is when you can still do whatever You ' re enjoying what a fast year does, but you simply put on ' t intend to. Sluggish years are complied with by no-go years, when you ' re stuck in bed nearly all the time.
These 3 phases are implied to advise you to fully enjoy your old age and also adjust your expenditures over time. Not everybody retires with the very same quantity. If revenue is a concern, you'could think about a mixed retirement. Continuing to work can bring monetary advantages, especially with today ' s medical breakthroughs, and people ' s life expectations often increases.More as well as more people are currently living beyond the age of 90. It ' s not a poor suggestion for senior citizens to function a few hrs a week. Not just does this keep your checking account active, it maintains your mind active which benefits your overall life. Since you are still functioning for the business, you might also be eligible for business health advantages which will significantly lower your costs. You may be shocked by the fact that 45 %of Canadian senior citizens are currently enjoying a blended retired life. Takeaway # 2: Watch on Inflation Let's admit it, since the COVID-19 pandemic is underway, the Canadian government has actually been enhancing its financial obligation which implies the expense of acquiring products will ultimately rise. Rising cost of living definitely influences every person ' s retired life. $100,000 is much less in regards to purchasing power today than it was twenty years ago. The publication suggests that if you retire at 70 as well as pass away at 75 after that rising cost of living will more than likely not affect your retired life. If you retire at 55 and live to 90, inflation will most likely decrease your buying power by 50%. It ' s real, according to Statistics Canada, life expectancy in Canada is 85 years for guys and also 87 years for women. Surprisingly, married couples usually live longer than single people, as well as can often live to the age of 92. Durability is not simply a blessing however it's. A danger multiplier. The longer you live, the greater the risk. That ' s why it ' s so crucial that your retirement revenue defeats rising cost of living. Point 3: Combine your accounts Couple years ago, I collaborated with a retired couple
. A few years back, I dealt with a retired couple.
They desire someone to look after their funds, so they can focus on where they'are taking a trip. Following thing I understood I learnt they had about 30 accounts in three different financial institutions. Checking accounts 1, 2, & 3, interest-bearing accounts 1, 2, & 3, 2 joint accounts, two dollar accounts, a lot of mini fixed deposit accounts, and so on. Would not it be irritating to see all those statements. pounding your mail box month after month? What I inform them is that you only need 4 piggy banks. The very first piggy bank is for paying your existing costs. Compose down your taken care of costs such as food, clothes, car upkeep, etc, as well as your weekend break expenses such as club memberships. Remember, in retired life, on a daily basis is Sunday.
The second piggy bank should have the ability to offer you with guaranteed income permanently, such as a pension plan, government benefits, fixed down payments, rental income, etc.Would you really feel less stress understanding that your assured life time income will pay your bills? If you want to understand more concerning Canadian federal government advantages, enjoy my previous video on Canadian pension plans, you can click the link in the upper edge 3rd piggy bank ought to be purchased at the very least something that defeats rising cost of living and also has sufficient development to Fund piggy financial institutions
An and B for later usage. The last piggy bank to save for the unanticipated and unpredicted is emergency funds. Did you recognize that a person of the fastest methods to deplete your retirement financial savings is via medical costs? According to Statistics Canada, by age 55, the opportunity of needing lasting treatment is one in 10, by age 65, the possibility is three in 10, as well as by age 75, the opportunity is 5 in 10. How are Canadians responding to the data? Most concur that at some point as they grow older they will certainly need treatment, however remarkably nobody thinks they are the ones that will certainly need it! Much more significantly, they believe that all of their long-term care demands will be taken care of by the federal government. The Federal government of Canada does have programs available to assist Canadians that need long-lasting treatment, but it ' s insufficient.
So be prepared for clinical events. My pointer is to consider the insurance coverage plan. It might conserve you hundreds of bucks if anything occurs. The last point is to function with an expert. It has actually been verified that those who plan their retirement are better than those who do not. If you put on ' t have the moment or passion, you can certainly employ an expert to help. They must'have the ability to direct out if there are any openings in your strategy and how to repair them so you put on ' t discover them far too late. In the following video I ' ll share what you need to know before functioning with a financial advisor.I understand! Among the important things that usually quits individuals from taking activity is that they put on ' t constantly really feel like they have adequate time. But is it true? Consider how much time you invest in your phone. I wager you probably enjoy a lot of videos besides this! If you have a routine of hanging out intending your weekends or your future summertime getaway, why put on'' t you allot a long time to preparing the lengthiest as well as essential “trip” of your life? Hope you enjoyed today ' s video Attempt seeing both videos. I guarantee you will certainly obtain worth from it. Don ' t forget to hit the subscribe button! Weekly, I share extra regarding just how cash functions and also exactly how to utilize it! I ' m Thomas See you following week!.
Do you want to know where the ideal place in.
the world to retire is? Whether your tastes depend on rich European countries or captivating.
islands, this video has everything possible retirees want. Many countries provide an excellent.
requirement of living, appropriate health care, and also also tax obligation benefits for senior citizens. There are other facets.
to take into consideration while picking the ideal nation for retirement. The 2023 Global Retired Life Index.
of InternationalLiving.com prices and also rates the world'' s 10 finest retired life locations for deportees.
in seven groups, consisting of the cost of living, housing, visas as well as benefits, climate, medical care,.
growth, and also Affinity.This annual index, currently in its 32nd year, considers the “top. secure, good-value locations ” beyond the United States and Canada, where a retired pair. might live conveniently with just $2,000 per month.
Below are the 10 nations. Retiring in Colombia
can be a great wonderful alternative those looking for. The price of real estate, food, and also health care is.
that American as well as European retirees can appreciate a higher standard of living. The country has.
a diverse landscape, consisting of hills, coastlines, cities, and also rural locations, which allows for.
a wide variety of tasks, from hiking and cycling to swimming and relaxing. Colombia has a good. medical care system, with both public and exclusive alternatives readily available. The nation has a growing
. number of internationally recognized medical facilities, as well as extremely educated physicians as well as other.
physician, that makes it a great area to retire if you ' re looking for quality.
health care. Retired people can use for the “Pensionado Visa” which offers benefits'and also price cuts to.
retired citizens, pensioners, as well as the “handicapped. Additionally, there are needs to make an application for.
Thailand. Thailand is a popular destination for senior citizens, thanks. Lots of.
of Buddhism, which influences its customizeds, beliefs, and also practices. The Thai people are additionally.
There ' s plenty to see and do in.
Thailand, whether you ' re looking for leisure or adventure. Thailand gives several Visa.
options for Senior citizens which makes it easier to remain for longer periods of time. It is also a hub. of Southeast Asia and also supplies easy access to other nations in the region, which makes it an excellent. base for retirees who want to travel as well as check out.9. Italy Well, you could be asking yourself why Italy is not. number 8 on our list. It ' s because this year's Retirement Index in fact features a “leading 11”. nation list, with Italy and Thailand both listed as No. 9 on the list. Anyhow, let ' s return. to Italy. Due to the fact that of its Mediterranean weather, gastronomy, and wine culture, Italy is extensively. considered one of the ideal countries for deportees to retire.Furthermore, Italy is renowned for. its kicked back way of life, premium quality of life, and reduced price of living than most other European. nations. Italy has a warm Mediterranean climate with light winters and hot summertimes.
It has a. abundant background as well as culture, with numerous renowned art cities and also ancient landmarks.
The country. has a well-developed healthcare system, taken into consideration one of the best on the planet.
Retirees. can sign up for the nationwide medical care system if they have a home permit.Italy provides a large. series of tasks as well as enjoyment choices, from exterior tasks to indoor tasks.
like seeing galleries, art galleries, and also theaters. Italy provides numerous Visa choices.
for senior citizens, consisting of
the “pensionato” Visa, which is available for retired people who can confirm that. they have a routine revenue, such as a pension plan. 8. France. With its attractive landscapes, rich society, and also world-renowned cuisine, France. provides a premium quality of life for “senior citizens. France has a varied climate, varying from warm. in the north to Mediterranean in the south. This makes it an excellent option for retirees.
France is known for.
The medical care system is. global, so retirees can register for it if they have a house license.
France offers multiple. Greece. This could be specifically enticing for senior citizens looking to run away the cool as well as snowy weather condition in.
It is an economical location for
a fixed. revenue as a result of its affordable of living. Greece is widely understood for its all-natural beauty, rich society. and also background, and also easygoing mindset. Lots of people feel that the slower pace and also focus.
Greece has a nationwide.
Greece supplies a retired life visa for non-European Union. Spain is known for its cozy, sunny
weather and and also climate, particularlySpecifically This can be particularly appealing for senior citizens looking to leave chilly.
Spain has actually a relaxed lifestyle,. with a focus on family, community, and free time.
Several retirees locate that the slower pace of. life and focus on taking pleasure in good food, red wine, and also company aligns well with their top priorities. in retirement.The retirement age in Spain is currently 66 years as well as 10 months for those who. have actually added to the Spanish Social Security system for at least 37 years, as well as 65 years for. those who have actually contributed for less years. Senior citizens that enjoy art, background, as well as design. might locate Spain to be a specifically boosting as well as rewarding location. Spain has a. well-developed transportation system, consisting of a
high-speed train. network as well as international airport terminals. 5. Costa Rica. Costa Rica has a tropical climate, with warm temperature levels year-round. The country. is recognized for its stunning all-natural charm, including rain forests, coastlines, and also. wild animals. Many senior citizens discover that the possibility to stay in an area with such.
plentiful natural deposits is a considerable draw. The expense of living in Costa Rica can be.
fairly reduced contrasted to other destinations, specifically for real estate and also healthcare. This. can make it an eye-catching option for senior citizens on
a fixed income.Costa Rica has a nationwide. healthcare system that offers fairly good protection and access to quality clinical. treatment. The nation is understood for its political security
and safety and security, with a fairly low. criminal offense price. Costa Rica uses a fairly easy path to residency for retired people, including. a program called the “pensionado” program, which gives residency to people with a. guaranteed earnings of at the very least $2,500 per month.4. Ecuador. Ecuador has a light environment
, with warm temperature levels in coastal areas and also cooler. temperature levels in the Andes
Hills. Ecuador is understood for its magnificent natural appeal, consisting of. the Galapagos Islands as well as the Amazon.com rain forest.
available to both Ecuadorian citizens and foreign nationals as well as supplies a range of advantages
. The price of living can differ dramatically depending on the area within Ecuador, and also. some locations might be extra expensive than others. 3. Panama. Panama has a cozy, tropical environment with temperature levels that are. relatively regular throughout the year. The country has a modern-day infrastructure,.
including trustworthy utilities, high-speed web, and also a “well-maintained freeway system. This can.
make it simpler for retired people to readjust to life in a new nation. Panama has a good health care.
system, with lots of well-appointed health centers and clinics.Additionally, there are several. private healthcare choices available, which can provide premium treatment at a fairly. low expense. Panama is a short trip from lots of significant cities in the USA, making it simple for. retired people to
remain in touch with friends and family. The country offers a selection of advantages
to. retired people, including discounts on medical care, transportation, and entertainment, also. as exceptions from certain taxes as well as costs. 2. Mexico. Mexico is a prominent retirement destination due to its cozy climate,. practical price of living, and close closeness to the United States.Mexico has an abundant cultural.
heritage, with several historical websites, galleries, and events. It
is a preferred retirement.
destination for its affordable expense of living, which can be an advantage for retired people on a taken care of.
earnings. Senior citizens can locate economical living alternatives while still delighting in the country ' s warm.
climate, rich culture, and food. Especially for those that decide to live outside of significant.
municipal areas, price financial savings can be a lot more substantial. The Mexican government has.
carried out a program called Seguro Popular, which provides accessibility to health care to. those without social safety benefits, consisting of retirees. This program is open to both.
Mexican citizens and lawful international locals. 1. Portugal. Portugal is a prominent destination for senior citizens, using warm. weather condition, beautiful landscapes, as well as a relaxed lifestyle. The nation boasts magnificent natural. landscapes, consisting of attractive beaches, rugged coasts, as well as rolling hillsides populated with. wineries and olive groves'.
Health and wellness Solution covers a wide variety of services, consisting of medical professional check outs, medical facility care, and also.
prescription medications. There is no specific retirement program in Portugal, but the nation. supplies a variety of motivations and benefits that can be attractive to retirees. These consist of. tax obligation breaks, such as the Non-Habitual Citizen tax routine, which offers tax exemptions for. certifying foreign citizens for as much as 10 years.
Thanks for viewing. Please. subscribe for more such web content.
If you're 52 and you have actually made a bundle,
that's just great if you wish to stop your task. It's simply fine. Call it
” retirement” if you desire. You stop your work at 52, like Mrs. Punta Gorda did, and also I'm simply pleading
that you do not go gather shells– that you provide on your own to something way insane. Crazy for a 52-year-old or a 62-year-old or a 72-year-old. That's what I'm.
believing. I don't care when you quit your task as well as call it retired life. That's.
unnecessary. What matters is what you finish with it.I was talking to a group last evening concerning this, and I quoted this remarkable passage from Adages: “The course of the.
righteous is like the light of dawn, which beams brighter and brighter till.
the full day.” The Christian life is stagnating towards evening, it's approaching.
noon. There are no sunset years. There's only 11 to midday, which indicates that you.
do not have to clamber to bring paradise into this globe– which is the whole.
way of thinking of the world that's costs billions of dollars to obtain you to purchase.
the desire or prepare to purchase the dream. They don't believe there's any type of vacation.
You got to. It's your last opportunity. Last chance?
trip. It's Friday!”.
Hi, this is Jared Snyder. As well as I intended to have a conversation with
you today about a problem I'' m seeing some of my clients battle with Which'' s what to do with. pension strategies particularly, whether we'' re deciding to take
a round figure payout on a pension, or we'' re choosing to take an annuity
whenever a person takes a lump amount, that doesn'' t mean it ' s. all taxed because year. You can do a direct rollover of.
that lump sum amount to an individual retirement account. We'' re really not fretted about.
taxes in this discussion today. We'' re actually simply kind. of checking out, uh, the, the maths as well as then some.
of the various other reasons it might make feeling to choose one.
choice over an additional. So once again, absolutely that trend in,.
in specified benefit strategies, pension is to supply those swelling.
And so when we'' re, when we ' re studying, whether.
And also you ' re trying to decide exactly how to. deal with that. You know, you need, you require sort of
some tools. for just how to assess it.And so actually the evaluation there is. driven by a few factors.
Off, it ' s really driven by'the passion. rates and also the death
tables that the actuarial business that ' s. doing, the calculation for.
what the round figure offer is, is using. As well as what we ' re seeing in. today ' s setting is that. the rates of interest that they ' re utilizing to mark down those future. capital to offer you a swelling sum.Those rate of interest are really low, that makes feeling because rate of interest. below in the us as well as around the world are extremely reduced.
Federal funds rate is at. absolutely no now. So we ' ve got extremely, extremely low rate of interest. The prices that that actuaries are. making use of to discount those future capital to make a lump amount offer. to you are very, really reduced. And our mortality are additionally. pertinent depending upon exactly how far out into the future, the actuarial,. uh, modification would, uh, would certainly assume your, your life expectations. is, um, that also comes into play. That ' s one factor, the passion. prices and also mortality tables.
Another variable is just type of. your comfort level with, uh, what happens if you do that,. take that round figure repayment.
As well as if you do roll those bucks right into. an IRA as opposed to taking a stream of
income, um, if you do that, you ' re, you ' ve reached have a comfort.
level with the variable, uh, degrees of returns that.
you would see on that, that sum of cash versus the.
guaranteed repayment you would obtain as an annuity stream of income.But, uh, simply from the mathematics standpoint or from.
the growth of riches perspective, allow'' s, allow ' s say that if we ' re seeing. rate of interest rates of 2 to 3, maybe three as well as a half percent on. the high-end being used by actuaries to determine a swelling amount settlement,.
that'' s typically what I ' m seeing. Whenever I'' m examining these. kinds of circumstances for clients, we need to ask ourselves, all right, do.
I want to approve what is in significance, a a couple of as well as a half percent.
return for the rest of my life on these dollars? Or do I believe that markets.
can return higher than that? As well as so, you recognize, the greater, the passion.
rate that an actuary uses, the more attractive that annuity.
stream of earnings becomes.If an, if an actuary is utilizing a 5% discount rate, that'' s actually kind of attractive,.
yet we'' re seeing 5% or, you know, we utilized to see also higher than.
that six, possibly 7% price cut rate. In those instances, you have to feel certain that over the.
rest of your life or you and also your partner'' s life
, if you selected a. joint as well as survivor pension plan benefit, that you ' d have the ability to regularly get.
returns more than that 5, six, 7% variety, which is, you.
understand, that'' s a larger, a larger bar to get over.
two to 3% is a lower bar.So those reduced rates of interest are.
truly reducing the bar for participants in defined pension plan plans to state, Hey, I believe I can do far better.
than that with my cash. I think I can expand my cash more.
And also if that'' s the situation, a lump sum may really. One other point to believe regarding whenever.
Whenever you choose them, a month-to-month annuity stream, you can select generally pension plans will.
let you pick either a solitary life advantage, which just suggests as lengthy as you'' re alive.
and you'' re the pension beneficiary, you get the money, but when.
you die, the advantages quit, um, if you select a joint as well as survivor.
benefit, then whoever you name, typically, it'' s going to be your.
partner that you name.Uh, they would receive some degree of advantage.
on the occasion that you were to die, yet when you'' re both gone, what occurs after that if you desire.
assets entrusted to either family, close friends, charity, whomever you.
select, um, than a round figure, you understand, may be a really good choice.
for you. You understand, you simply, you need to have a fairly good degree.
of confidence that markets are going to give us far better than whatever the interest.
rate that'' s being made use of to compute. The round figure offer that you'' ve. been made. Um, you additionally, if you'' re going to choose.
the lump sum offer, you require to be comfy with the.
worry shifting that'' s happening with, uh, the moving of obligations, since really that'' s what a great deal of. this boils down to for the sponsors of these pension, the.
business that you benefit, they wish to get this off their books.They wear ' t desire to have this long-term. commitment over years and also years and also years. And so they ' re shifting the worry. of that from themselves or to a business that they would certainly, uh, you understand,.
assistance have come in as well as help manage the, uh, the pension. They'' re shifting.
that worry to you. They'' re'stating, Hey, here ' s your round figure, go and do. whatever you pick to do with it. It ' s not our issue any longer. So as lengthy.
as you'' re comfortable keeping that, that, that shifted burden as well as you'' re comfy.
that you can have a wonderful investment prepare for those bucks. It'' s mosting likely to catch far better returns.
with time than what you'' re going to obtain. You understand, based upon the rates of interest that'' s being.
related to give you that lump sum quantity in a swelling amount can make.
a great deal of feeling. Uh, just feel cost-free to provide me a phone call or.
email me and also let me understand if you have questions on this. If you'' re. evaluating a pension right currently, possibly you'' re wrestling with this.
precise situation as well as you just want a second collection of eyes as well as a.
sounding board to aid you make an excellent decision.Give me an e-mail
or telephone call. And our group rejoices to be of solution to. you.
Thanks so a lot. Have a wonderful day.
Today I want to share with you exactly how I retire at the age of 27 how I did it and maybe how you could do it as well you see I started very early at a young age the path of entrepreneurship I started my first business when I was in high school just with a couple of buddies mowing lawns for people in our neighborhoods that's my very first business there are three things that I did during this time that allows me to retire young and with higher rich so the very first thing is this I focus on developing what I call high income skills my high income skills skills that allow me to bring value to the marketplace in exchange of money now I define high income skills as skills that could make me $10,000 or more per month you see the first five years of my business career when I was getting started the first five years I didn't take a single day off I was working 12 to 14 hours a day seven days a week for the first five years while all my friends they were out there drinking drinking and having parties and chasing girls I was fucking working I sacrifice I made a lot of sacrifices I believe if you don't sacrifice for your dream then your dream becomes your sacrifice so I made a decision I pay the price early on I spent a few years of my life working on myself working on my business doing the things that most people are too lazy to do not willing to do so I could have what most people cannot have the very first high income skill that I develop was copywriting now you might wonder what that is well it's simply the skill to use words to sell that's it Prine persuasion or persuasion in print and our words running a one-man advertising agency myself if you watch the TV show man man that's kind of what I was doing without all the smoking and all that bullshit but I was basically a cocking gun in my early 20s working with companies working with entrepreneurs and I was making 10,000 a month $12,000 a month in my early 20s and at the time I thought he was it was like I felt like a million bucks I thought it was the most money I've ever seen and I did that then later on I took that money the income did I earn I put that aside and I started coin called a scalable business now if you want to retire early and retire young one of the most important things that you have to know is noticing identifying trends at a time I went onto the internet I saw this trend on the Internet we're talking about back then remember Netscape dial-up modem I'm talking about overture for pay-per-click you know good old days you're watching this young young guys you may or may not even know this but I'm talking about Yahoo for search engines okay Facebook and then later on Google but I'm talking about that so when I got started back then early and I noticed a trend on internet and I was importing collectibles from Hong Kong Bruce Lee collectibles actually and I was flipping them on eBay I was doing affiliate marketing I was doing digital marketing online I was selling digital products before PDF before all these things were even popular software all these things and that's how my first bucket of money then I took that money and I saw some of those physicists I cash out and I took that money and invest in real estate then my investments are able to support my lifestyle and that's how I retire at the age of 27 but here's one thing I've learned through that experience at the age of 27 I thought this was my dream I thought I want to get to a point where I don't have to work anymore I'll sit in a beach all day and that is going to be it and I did that the first month first 30 days I was sitting on a beach on English pay just to be there every single day right looking at a beach looking at the ocean I thought I have made it you know what all I got was sunburn that's it you may dream I'm sitting on a beach every day I'm telling you when you could do it I was bored out of my mind I thought this is fucking stupid I work so hard to get here and now I'm sitting on beach doing nothing this is dumb like did I work all like this heart and may all that sacrifices for this like come on because you've got to understand when you're entrepreneur I was going like this every day go go go go go suddenly when you have nothing to do when you cash out when you have investments you're like okay I guess what else do you do right after 30 days of that I was sick and tired of it I'm like this is a dumbest thing ever so the second month I did something different actually thought you know what I'm gonna I'm gonna watch the movies so at a time I rendered a lot of movies a lot I was watching six seven movies the DVDs stack of them every single day let me tell you something I love movies don't get me wrong but when you're watching six seven movies every fucking day you don't like movies so much anymore believe me okay after 30 days of that I'm like this is again the dumbest thing ever i I just felt like I so lazy I felt like I wasn't doing anything with my life then I went to talk to my mentor and he said okay Dan he's what I want you to do I want you to start in other business I said no no I'm not gonna start another business I was killing myself all these years so I could retire you don't understand I'm not gonna work he said no you're gonna start outta business I said no I am NOT gonna start down to business he said you're gonna start another business I said no but this time he said you're gonna start a business from a totally different place because now you're made it you could start your business coming from a place of strength coming from a place of abundance coming from a place of something that you want what do you want to create build it around your wor strength build it around your passion because now money's not an issue you're not just doing to make money what could you do how could you use all the skills that you've accumulated you've developed all the business acumen all the knowledge that you have how can you use that to do something great and I thought that I could do so that's my story that's how I retire at the age of 27 I don't know where you're at in your journey maybe you want to retire young maybe you want to retire at age of 45 55 65 I don't know where you're at but what I do know is it's possible and what I also do know is once you get there there's always an other step there's always an other level so don't wait don't feel like you have to get to a point where hey you know what I'm gonna spend my whole life doing stuff that I hate so I could get to a point where finally I could do some stuff that I love No enjoy the journey success is a journey not a destination
– Impossible is probably the
response most people will have when they see the
thumbnail for this video, but let me show you how, by taking action, you really can retire in
two years by investing in a certain type of property. (upbeat music) Hi, my name's Tony Law from
Your First Four Houses, and I teach people how to build
a small property portfolio that generates a great income
for them so they can give up their day job if they
wish because they're now financially free. So for 21 years, I ran a kitchen
business where I exchanged my time for money, but
in less than two years, I managed to replace that
kitchen income with a passive, or relatively passive, rental
income, and I want to show you how you can do exactly the same. So for this exercise, I'm not
gonna assume that you need 10,000 pounds a month to
retire and live comfortably. In fact, depending on
where you live in the U.K., the average household
incomes seems to be somewhere between 28 to 35,000 pounds
a year, although personally, I might struggle to live on
that if I'm being really honest, so let's just round that
up to 42,000 pounds a with an IRA for investment year which quite conveniently
helps me with the maths because it means that's 3,500
pounds a month that you need as a passive rental income. Now, for some that may seem
a little on the low side, but I think most people
could probably retire and live quite well on that
if they're being really honest if you had no other bills to pay. So we now have a clear goal. We need to earn 3,500
pounds a month passively moving forward, so let's
just break this down. How many rental units does
that actually equate to? Well, it obviously depends
on the type of deals that you're doing and the
strategy that you're following. In fact, to be honest, I've
got a property that by itself, one single property, after
all bills have been taken off, would cover that amount of
money, although for transparency, I've also got other properties
that only cashflow a couple of hundred pounds a month give or take, and it always surprises me,
there are people out there that have got properties
that simply don't cashflow at all, I just don't understand
that, but let's just say, for the sake of this
exercise, that on average, my property portfolio cashflows
about 500 pounds a month after all bills, so if you
wanted to hit 3,500 pounds a month, how many properties do you need? Well it's seven, isn't
it, nice and simple. It's seven at 500 pounds a
month, but can you acquire seven properties in two years? Yes, I know you can. Maybe in year number one
you might do two or three which will leave you maybe
four or five in year number two as your experience and
confidence grows, but I know that you can do it. Is it gonna be easy? No, you're gonna have to
put in some massive effort to hit this target. You're gonna have to
take a tonne of action, but I know that you can do
it, and if you want a list of 15 tasks that you can
do in the next seven days, check out this video because
I'll run you through exactly what you need to do in
order to hit that target. You see, the thing about property investing that is quite magical, quite amazing
actually, is that you need to work really, really
hard for a couple of years, and if you do, you can replace
your income in its entirety after just maybe a
couple of years of work, and if I can in some way
help you in your journey, well that would make me very happy. I recently updated my 50 point
checklist that will run you through all the tasks you need to take before buying that next
investment property. If you'd like a copy, simply
click on the link here or in the description box
below and I'll send it straight out to you.
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 .
– Are you looking forward to retirement? Of course you are. Check out our top 10 tips to make sure you're on track. The sooner you get started, the more likely you'll have a happy and healthy retirement. Tip one is take stock. How do you want to live in retirement? Do you want to move to a new area? Do you want to do a bit of travel? How much is it going to cost? How much do you have saved? Are you on track? If not, what are you
going to do to get there? Tip two. Plan for the rest of your life. Most people are in retirement
longer than they expect. While your health and family history will influence the length of your life, most people are living longer. In fact, you could easily
live into your 90s. Plan for the long term and don't forget that you may need extra
assistance as you get older. Tip three. Review your investments. For your savings to last
the rest of your life you need to have the right mix of growth and defensive assets and you also need to have something to bring in an income and also a bit of growth. Diversifying your assets across cash, fixed interest, shares and property can help smooth the returns. Tip four. Stick to your plan. Investments can quickly change in value and while it's tempting
to sell out of shares when markets go south, this is often the worst
thing that you can do. It's important to remain
focused on the long-term as they usually recover
if given a long enough period of time. Tip five. Get the structure right. By changing the way you own investments and the way you receive the income can reduce the amount of tax you pay and also increase the
amount of age pension or DVA pension you receive. Even if you aren't
entitled to an age pension, you may be eligible for discounts which can save money over the long term. Tip six. Get your affairs in order. Estate planning allows you
to pass on the right assets to the right people at the right time. Unfortunately we are all going
to pass away at some point. The first step in a good estate plan is by getting a will. You should also speak with your solicitor about enduring power of attorney and advanced medical directive. And remember to review your estate plan every few years as
circumstances change over time. Tip seven. Stay fit and healthy. If you stay physically and mentally active you're more likely to enjoy
a longer, healthier life. Take up a hobby, learn a new skill or maybe volunteer in the community. Tip eight. Rethink the move. Some retirees move to a new location that they've always wanted to retire in and it hasn't measured
up to what they expected. If this is something you want to do, perhaps move there
temporarily just to make sure it lives up to your expectations. Tip three. Review your investments. For your savings to last
the rest of your life, you need to have the right mix of growth and defensive assets and you
also need to have something to bring in an income
and also a bit of growth. Diversifying your assets across cash, fixed interest, shares
and property can help smooth the returns. Tip four. Stick to your plan. Investments can quickly change in value and while it's tempting
to sell out of shares when markets go south, this is often the worst
thing that you can do. It's important to remain
focused on the long-term as they usually recover
if given a long enough period of time. Tip five. Get the structure right. By changing the way you own investments and the way you receive income, you can reduce the amount of tax you pay and also increase the
amount of age pension or DVA pension you receive. Even if you aren't
entitled to an age pension, you may be eligible for discount. (upbeat music)
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 toretire 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