It’s a question that keeps many Americans up at night: Will I outlive my money? Everyone has heard a story of the senior who has spent too much and saved too little, leaving little time for fun or relaxation in what’s supposed to be their golden years.
Why People are Outliving Their Money
With advancements in healthcare and medical technology, people are living longer and outliving their nest eggs. It’s impossible to predict how long you’ll need to work and how much money you’ll need to cover your expenses through the end of your life. Obviously, you need to save more than you’ll ever need.
Also worth noting – retirement isn’t what it was 50 years ago. The way Americans approach their golden years has changed dramatically. For instance, many of our grandparents had a pension (or two) to cover basic expenses literally until the day they died. It was also more likely for seniors to move in with their children or other family members. It’s sad to say, but aging today is more about what the individual does for themself in their younger years rather than what their employer or family members do for them down the road.
The Path to Financial Freedom
So how to save enough to cover what lies ahead? It seems impossible, but it’s not with proper planning. One of the best investments you can make is real estate. Most investment assets such as stocks and bonds need to be liquidated to create distributions. Once those funds have been liquidated and spent, they’re gone.
However, that’s not the way real estate investing works. When structured properly a real estate investment can become a self-funding, self-sustaining stream of revenue continually being replenished by tenant dollars month after month, year after year, decade after decade.
It sounds simple, but there are basic rules and a lot of information to gather before you get started. Our book, Destination Perpetuity, can walk you through the ins-and-outs, ensuring you make the right investment that provides passive income for years to come.
The Rule of 25
Did you know that many retirement plans are designed to run out of money in 25 years? It’s true, it’s called the rule of 25. Many investment professionals utilize the rule of 25 to plan for their clients’ retirement. The premise is a retiree should amass 25 times their annual living expenses to live 25 years beyond retirement.
This makes perfect sense if you die when you’re expected to. But what if you don’t? Let’s say you want to retire at 60 and you save enough money to live until you’re 85. But what if you live to 90 or 95 or 100?
Running out of money in your golden years is not how any of us envision our retirement. It’s best to have a plan in place so you never have to worry about what will happen during your golden years.
Investing in real estate can make the difference between a carefree retirement and a stressful one. Unsure where to start? Let us help. Download the first chapter of Destination Perpetuity for free. This great resource will arm you with the tools to make informed decisions about your future so you can live to 95, 100 or beyond!