I recently sent an email about what I think is the right way to invest for your retirement…
Let’s just say it’s NOT what those financial gurus advise. I even said I get a little fed up when I hear the so-called gurus talking about retirement. Okay, a LOT fed up. :-/
So, I’m continuing my rant, um, I mean my discussion about retirement… and giving you a better strategy than what the financial guys continually spout—that you need to save millions of dollars during your lifetime in order to retire. And that stock markets are the way to go.
Blah blah blah to all of that.
Okay, crunch some simple numbers with me and you’ll see a workable plan on how you can get to retirement in just a few years.
I’m using my city of St. Louis as our example. Let’s say you want to make $100,000 a year, gross, for retirement. That’s $8,333 a month.
Take just 1 wholesale deal a month and set aside the profits from it. When you have enough set aside, buy a $35,000K property in a B-/C neighborhood and rent it out for $800/month. (I’d also figure in 40% for property management, 1-month vacancy, repairs, property taxes, insurance, etc.)
And if you did this multiple times—set aside wholesaling profits and bought more rentals—with about 17 rentals, you’d have plenty of passive income flowing… about $100,000 per year to live off of.
And you don’t have to get all 17 properties all at once. Do this over the next few years. It’ll take less than 10 years with similar numbers.
Those gurus say you need $2.4 million to retire and you should invest in stocks.
What I’ve just laid out for you is why I disagree. (Not to mention how risky and volatile the stock market is.)
I think the safest asset to invest in is real estate.
Again, simply take some profits from your wholesale deals to re-invest in residential rentals. Once you’ve got a smallish portfolio, sit back and relax…
Your attainable goal really can be to live a retirement lifestyle while you’re young enough to enjoy it.