Proper retirement planning 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 what the money is spent on and counts vacations from the first day before going back to work.
Do you do that too?
I did and it drove me crazy, just as I was beginning 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 some older guys retiring and they all said how lucky they were to be retiring.
Do you remember the great 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 shrink as they were going to 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, the children have been raised and educated, and they have done all they can 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 retiring at age 65 will only be living on an income stream of less than $16,000 a year!
That’s just $320 a week to run the household, 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) 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 tapping into the future!”
So how do we change all that?
How do we start working smart so we can retire financially secure and free with a steady 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 school education using this method that I am about to share with you?
Like my daughter Gyorgem, investment properties paid for her private education.
First, let me 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 rather than increase the loan, right?
Well, what if you had a real estate investment portfolio of around a million dollars? Let me tell you, at today’s values it’s not hard at all to do, a million dollars in real estate investment really isn’t that much, once you get into your first investment, the second isn’t too far off.
So if your hypothetical portfolio is increasing in growth at a rate of 7% per year, that means you have a capital increase 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 you look at it over the years, it averages out capital growth.
So why can’t we 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?
Nope! Because it’s TAX FREE! It is a LOAN, not 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% one year and the next couple
years may be flat, but on average, if we look at it over the long term, the property has proven its worth 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 over this and show you how it’s possible, even for someone with a small income, but remember 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 said before, we can never replace time.
Many people simply waste their time looking for excuses to put aside their financial wealth or leave it for another day that unfortunately never comes.
TRUE FACT-
Did you know that we spend more time writing a shopping list?
list or planning a two-week vacation of what we do for our entire future?
Isn’t this a shame?
Think about it and make a decision to start working on your future immediately, right now. Figure out what you want and need so when you retire you’ll 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