How old are you now? How far away is your retirement? Have you even thought about it yet? Are you currently in your Thirties or even your forties, and thinking that it’s still early and that you still have years and years before your retirement?
My advice is simple, start thinking about retiring now. You can plan a much better financial future than what was “promised” to you by the government. You can have a future where you are free of all worries, travel around the world with your family, follow your hobbies, do what you love, and spend your precious time with people you love.
How real estate investing can help you achieve this?
Living day to day requires money. So, the first part of your plan is to figure out where to get the money to cover your expenses. Remember to cover not only your day-to-day living but beyond. Do you want to travel? Do you want to get a fishing boat and spend summers on the lake? You can’t possibly save up enough to live your best life working a 9 to 5. You need a way to replace that income. You need a better, smarter, and safer idea than going to work every day, paying your bills, and trying to save enough to one day quit the rat race. A good look at the stock market’s volatility means only the lucky will not face a downturn right as they prepare to retire. To truly replace your 9 to 5 income, you need something that doesn’t require you to work. Something that makes your money work for you.
Passive investing in real estate is just what the doctor ordered. Stocks and bonds are volatile, and you have no control over the yield. However, Apartment syndications have shown over time to reliably higher annual yields.
For example, The S&P 500 Index records place the average annual return on traditional stocks between 1926 and 2018 at 10%. After adopting 500 stocks into its index, the average annual return between 1957 and 2018 was roughly 8% (7.96%). Inversely, the average return on apartment syndications between May 2013 and 2018 was 25.213%, including dividends and distributions.
Real estate investments have always been the best way of building wealth for yourself and can cover all your needs even during your retirement. The best part is, you do not have to be the landlord. Working with three T’s: tenants, trash, and toilets, or constantly purchasing or selling properties, is too much like work. Investing passively means putting your capital in the property but having no direct responsibilities for managing it. You will never have to deal with the Three T’s.
While investing with someone else, who has much more knowledge about the market and experience in the real estate business, almost always guarantees your investment success, meaning that you will be receiving enough cash flow so you can follow your dreams.
Generating profit passively is exactly what you need to replace that old 9 to 5 income, enjoy your life to its fullest, and give yourself a well-deserved time to rest.