Help!
I have fallen behind in saving for retirement!
According to the Congressional Research Service 41% of American households headed by individuals ages 45-54 do not have any retirement savings, including IRAs, 401(k)s or defined benefit pension plans!
Here are 3 more alarming statistics--
Today, for an average couple aged 65—there is a 48% chance at least one of them will live to age 90! a 6% chance one of them will live to age 100!!! (Source: 2000 Actuarial Tables)
When Social Security was created in the 1930’s, the average life expectancy was only 57! This helps explain why Social Security may go bankrupt in the next 35 years and why companies are dropping their pension plans like hot potatoes.
According to Fidelity, a 65 year old retiring in 2006 without employer-sponsored retiree health insurance needs $200,000 just to cover medical costs in retirement. This does not include the cost of OTC medicines, dental services, and long-term care.
The biggest danger as we each plan for our future/retirement is “will we out-live our money?” For couples retiring today at age 65, their money must last at least another 30 years! And 30 years is a very long time for money to last in retirement. Agreed?
So, if you are part of the 41% from above, what do you do?
Or maybe you are part of the 59%; but you don’t have enough money saved yet, what do you do?
First, I would encourage you to take advantage of 1 or more of the Millionaires’ Mortgage Secrets. Secret #1 is probably the most powerful secret for you as you could invest a large lump sum of money right away for your future.
For example, if you are buying a new home at age 50 and you are planning on putting $200,000 down on your new home. STOP! Avoid the 0% INVESTMENT! Instead, invest your money elsewhere. Over 15 years that $200,000 investment could grow to—
$634,433 at 8% annual return
$835,449 at 10% annual return
$1,094,713 at 12% annual return
Next, I would strongly encourage you to consider investing in investment real estate. Real estate has created more millionaires than any
other investment in our country’s history!
For the 11 HUGE benefits of real estate investing, please click here.
Benefits of real estate investing
The HUGE power of leverage and OPM (Other People’s Money)—Banks and Mortgage companies love to lend money on real estate! By using their money your return on investment or ROI can easily reach 25%. And this does not include any appreciation gains! In fact, I can show you how your ROI can be > 400% annually with very little risk!
Can replace LOST pension or Social Security income--Provides you with a check every month (rent) WITHOUT decreasing the asset’s value, unlike an IRA or 401k. Thus, minimizing your risk of out-living your money! (This is critically important once you are retired!)
2 amazing tax benefits—One benefit allows you to defer paying capital gains tax for your entire life! If planned properly your heirs will not have to pay any capital gains tax either! The second benefit can reduce your taxable income and thus your tax bill; thus increasing your monthly cash flow. (Call me first before calling your tax advisor as your tax advisor may be unaware of these 2 benefits.)
More predictable than stocks—Can anyone predict with accuracy which stocks will be the best to own in 5 years? NO! But, real estate can be predicted. How? Follow the jobs and migration of people. An economy that is creating good high paying jobs will create strong real estate appreciation. You combine that with an area that is a highly desirable place to live like Denver and strong appreciation is possible. E-mail me or call me about my 2 favorite areas in the Denver metro area to be buying real estate in!
Peace of mind--What was the largest decline ever percentage wise in Denver real estate values for 1 year? Answer: 2.16% in 1988! What was the biggest 1 day decline percentage wise for the Dow? Answer: 22% on 10/19/1987! The stock market can go down 2% in a matter of minutes! So, which investment provides you with greater peace of mind?
Stability or less volatility—Since 1975, there have only been 5 down years for Denver real estate. Why is real estate so stable? Everyone needs a place to live! Everyone does not need to own stock. Stocks or mutual funds are a luxury. A roof over your head is a necessity! As I write this, the Blizzard of 2006 is howling outside my home office window!
You have control—What can you do to increase the value of your stock in a company? Basically nothing, besides prayer! But, real estate gives you some control as you can increase the value of your real estate with building or land improvements.
Monthly cash flow to invest elsewhere for diversification—This will increase your peace of mind!
Diminishing supply—The amount of available land we have to build on is constantly shrinking, which only leads to higher prices. Any growth control initiative will only further increase real estate prices. Boulder Colorado, is the poster child of this fact.
You don’t have to use your own money—Use your bank’s money and the money trapped in your house underneath your mattress. You may have over $100,000 trapped in your home.
Will allow you to catch up on your retirement savings quickly because of the cash flow both today and in the future. Not to mention, the future appreciation potential of each property. Based on the last 31 years each property should double in value about every 10 years!
To learn about the investment with a 400% annual rate of return, please click here.
An investment with a 400% rate of return annually!
Imagine uncovering $40,000 from underneath the mattress of your home and investing this money into investment real estate & earning over 100% cash on cash return year in year out.
Is this possible?
A 4-plex example--
Annual cash flow $7,128
Depreciation tax savings $4,106
Total net return annually $11,234
(Click here to see my spreadsheet)
What’s your rate of return?
3% ($11,234/$375,000 PRICE)
28% ($11,234/$40,000 INVESTED)
486% ($11,234/$2,310)
The correct answer is C!
How?
Open a HELOC or Home Equity Line of Credit
on your home for $40,000.
At an interest rate of 8.25% your monthly
payment is only $275 with interest only payments!
Your AFTER tax payment is only $192 a month
($275 x 70%)
Thus, you have only invested $2,310 into this investment each year!
You just made $11,234 with only $2,310 out of pocket!
Would you spend $2,310 to make over $11,000?
If your answer is Yes, then please call or e-mail me NOW!
If your answer is No, then, you don’t deserve to keep your money! Sorry, but it’s the truth!
The ABC’s of Real Estate Investing
I teach this basic “how-to” class occasionally for consumers and real estate agents. This class is designed to help you see why you want to own investment properties; but also how to manage them and how to build a profitable real estate portfolio for yourself.
If you would like more information on this class please call me or e-mail me. Also, I will keep updating my website with more information for you on this topic.
EXCEL SPEADSHEET
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