Retirement planning with ownership
Retirement planning with ownership is easy to do when done correctly.
Let me ask you… Have you ever been on vacation and realized that there are basically two types of tourists?
The first type is similar to how I was years ago:
The person who looks at where the money is spent and counts vacations from day one before going back to work.
Do you do that too?
I did it and it drove me crazy, just when I was starting to enjoy my vacation, it was time to go back to work.
Now the other type of person is the one who goes on vacation without keeping track of what they spend or how long the vacation will last, with the flexibility to change
plans on a whim (for example, deciding to go to another vacation spot on the spur of the moment).
Why can’t we all be like this?
Wouldn’t you agree that if we worked all our lives we deserve to live that lifestyle? We deserve to enjoy our golden years doing the things we want to do and be financially secure enough to live life to the fullest.
We can, but you need to configure it.
Please also remember
Real Estate Investing is NOT a Get Rich Scheme
Which means you need to start setting everything up now and not tomorrow, as we all know we procrastinate and knowingly, after a year or two, criticize ourselves for not taking the plunge when we think about it.
I remember back in the early 80’s when I started out as an apprentice motor mechanic there were a few older guys retiring and they were all saying how lucky they were to retire.
Do you remember the big thing in the early years,
everyone used to get “The Gold Watch”
But you know what? No one even thought about what was really happening to these retired workers, their cash flow was going to go down as they were going to go on pension.
Most people work their entire lives, sometimes starting at age 15 and working until age 65 (a working life of 50 years).
Generally, by the time people reach retirement age, the house is paid for, they have raised and educated the children, and have done everything possible to support the family.
But interestingly, after all that, if we look at the figures from the Australian Bureau of Statistics:
86.6% of Australians who retire at 65 will only live on an income stream of less than $16,000 a year!
That’s just $320 a week to run the house, pay all the bills, buy gifts for the grandkids, buy clothes, etc. I know it’s not close enough to live a decent lifestyle – my mother (72 years old) experiences it every day.
So how do we work our whole lives and yet only end up with such a small amount of money?
Easy, because they only teach us how to get a job, pay our taxes, buy a house, start a family and that’s it.
No one has ever said, “Wait, you better start working smart and make some retirement plans and start taking advantage of yourself for the future!”
So how do we change all that?
How do we start working smart so that we can retire financially secure and free with a continued income or alternatively become financially independent at a young age?
What I am about to show you has been used by the wealthy and others in the real estate field for many years. It’s really nothing new
Did you know that investors use their investment properties to pay for their children’s education using this method that I am about to share with you?
Like my daughter Gyorgem, investment properties paid for her private education.
First, I’ll tell you how it is: if you have a home loan with a line of credit (LOC), couldn’t you use the credit to buy cars, vacations, etc.? directly from the LOC?
But, it’s YOUR house and you’d rather pay it off as soon as possible than increase the loan, right?
Well, what if you had a real estate investment portfolio of around a million dollars? Let me tell you, in today’s values, it’s not hard at all to do, a million dollars worth of real estate investment really isn’t that much, once you get into your first investment, your second isn’t far off.
So if your portfolio is hypothetically increasing in growth at a rate of 7% per year, that means you have an increase in principal of about $70,000 per year, right?
I’ll also tell you that as you probably know, property doesn’t go up at a right angle, but if we look at it over the years, it averages out a capital growth.
So why can’t we just borrow that from the bank and use it for our lifestyle? And if we borrow from the bank, it’s not income, so do we pay taxes on it?
No! Because it’s TAX FREE! It is a LOAN, not an income!
Now, are we starting to work smarter and not harder?
This is in theory, because we all know that the property does not go up
7% each year. It can go up 15% a year and the next couple
It may be flat over the years, but on average over the long term, the property has proven itself time and time again.
Just remember, with this method it also depends on how much you owe the bank (rental income plus expenses). But if you have a long-term property, this is very possible and easy to achieve.
In my personal quotes, I go through this and show you how it’s possible, even for someone with a small income, but remember that you’ll need to use capital. If you don’t have a home, you can use someone else’s home for a couple of years until the investment has grown in equity, and then you can release the security property.
My oldest client was 64 and self-employed when he purchased his first investment property, so never say you’re too old or too late.
As I have said before, time can never be replaced.
Many people simply waste time making excuses to put their financial wealth aside or leave it for another day that unfortunately never comes.
REAL FACT-
Did you know that we spend more time writing a shopping list?
ready or planning a two week vacation from what we do for all our future?
Isn’t this a shame?
Think about it and make the decision to start working on your future right away, right now. Work out what you want and need so that when you retire you have something to help you, because retirement planning with ownership will help you get there if you do it right.
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Wishing you every success,
Dino F. Livanidis,
0418-872280,
www.npis.com.au