Let’s talk about retirement. We’ve all seen those ads with perfect beach sunsets, happy grandkids, and a beautiful home. It’s an ideal image, but for many small business owners, reality is a different story.

If you’re like many business owners, you might be pinning your retirement hopes on selling your business or relying on the stock market. But these traditional plans often don’t deliver. So, let’s dive into why they might fall short and how real estate can be your ticket to a more secure future.

Traditional Retirement Plans: Why They Fall Short

Scenario One: Betting Everything on Your Business - A lot of us invest heavily in our businesses, thinking it will be our golden ticket to retirement. But when it’s time to cash out, the business might not fetch the price you need, or worse, it might not be as attractive to buyers as you hoped. This can leave you in a tough spot come retirement time. What if you fail to grow it and scale it. It might be a good cash flow for today but not a long term income or a way to grow true wealth. 

Scenario Two: Relying on Retirement Accounts - So you’ve been diligently putting money into your 401(k) or IRA, expecting it to grow into a comfortable retirement fund. But what happens when market ups and downs affect your savings? You might find yourself living more frugally than planned, with less control over your financial future. Also, you are locking your money for years AND you get penalized for trying to access it when you need it. Retirement accounts don’t have the tax advantage that real estate offers. All the profits are TAXABLE! I realized this in 2016 when I read the book “Tax free wealth” by Tom Wheelwright. That’s when I decided to move my retirement accounts into capital I can use today, to buy appreciating Real Estate assets. 

The Real Solution: Real Estate Investment

Here’s where real estate steps in as a game-changer:

• Tangible Assets: Unlike stocks, real estate is a physical asset that tends to grow in value over time. You’re investing in something concrete.

• Steady Income: A diversified Real Estate portfolio can generate multiple streams of rental income. This steady cash flow is a lot more predictable than stock market returns.

• Tax Perks: Real estate comes with some nice tax advantages, like depreciation deductions and favorable treatment of capital gains. These can really boost your returns.

• Wealth Building: You can use borrowed (leverage lenders or other people’s money) money to buy property, which means you’re not just building wealth through appreciation but also through leverage!! DOUBLE win!

• Diversification: Adding real estate to your investment mix means you’re less dependent on the ups and downs of the stock market. It’s a great way to spread out your risk. Furthermore, you can diversify across different markets, assets, and operators.

Act Now for a Better Future

Don’t wait to start investing in real estate. The sooner you get started, the more time you’ll have to build wealth and set yourself up for a comfortable retirement. Our strategy is to double the invested capital in 3-5 years. We have completed two cycles like that, we more than doubled our money in 3 years. What this means is that we can take that money and re-invest it. Now we have our money working on two or three locations/assets and then four to six locations. We are in the middle of the third cycle. Let me leave you with some tools that can help you develop your own investment strategy and timeline. Most people ask us: How much do I need to invest to create an X amount of passive income? And How long would it take me to achieve that?

Well, Chris created a calculator to help you answer those two questions 😀 Enter what's your passive income number and see the timeline you need to follow to achieve that passive income.  

Want to see how real estate could fit into your retirement plan? Check out our RETIREMENT CALCULATOR - CLICK ME!

Invest smarter with real estate and get one step closer to the retirement you’ve been dreaming of. Your future self will be grateful!

LEAVE A REPLY

CONTACT US | ABOUT US