How Investing In Real Estate Is The New Retirement Plan

How Investing In Real Estate Is The New Retirement Plan

Can and should real estate investing act as the new pension for retirement?

This is a really cool concept to me because I don't think pensions are really a thing anymore or a thing that people are going to be able to rely on in the future.  I love real estate investing and I especially love it as a financial plan for anyone who wants to retire early or really start planning strategically for their retirement now.

I have to give a shout out to this book; “The Real Estate Retirement Plan” by Calum Ross. He outlines this concept in a really amazing way throughout his book. Grab a copy if you haven't read it already.

The concept is this: real estate investing can mimic a pension in the sense that it can provide you with a monthly payment the same way that a pension does.

The monthly payment is coming in the form of rent from your income property.

Let's say you purchased three or four investment properties and you plan to just hold on to them and have your tenants pay off the mortgage entirely. Over 25-30 years, the life of a mortgage, even if you don't realize any appreciation on the property, and you just have your tenants paying down your property….That is essentially your retirement set up.

It debunks the whole idea that to be a real estate investor you need to have 100 properties or 100 doors or 50 doors, whatever it is. For some people just having that three to five investment properties could be enough for them to retire or help them replace their retirement income when the time does come for them to stop working.

After paying off those three or four or five mortgages over that span of 25 to 30 years, you're going have thousands of dollars coming from rental income to your pocket every single month, from these properties.

This could be an amazing way to mimic a pension if you don't have the option of having a pension in your retirement. These properties could be looked at as your pension plan and it could also be a way to supplement any other investments that you have so that when you retire, your lifestyle doesn't need to be downgraded.

Oftentimes when people retire, they're not prepared and they have to downsize and they have to cut expenses and they have to really watch their money because they have to make it last for as long as they're going live.

This may not even be on your radar, and most people don't think that they're going to be in that situation when they retire. But the truth of the matter is that a lot of people are and there are a lot of seniors having to take minimum wage jobs just in order to supplement their retirement income they have in order to make ends meet.

You do not want that to be you. You have to take control of your finances now and set yourself up so that not only are you going to be able to have a retirement income, but you'll be able to enjoy a lifestyle in your retirement that could even be potentially better than the lifestyle that you have during your working years.

Next steps for this would be to sit down with a really good financial planner that specializes or at least is really well versed in real estate investments. Figure out how much exactly you're gonna need on a monthly basis to replace your income and still maintain your lifestyle, and then reverse engineer how many properties that's going to take for you to replace that income and get that recurring revenue every single month from the rental income from the property.

I love this concept because first of all you're in complete control of it, you can design your retirement or your early retirement, your financial freedom however you want to design it.

I want you to know that this is possible and that you don't have to have this massive portfolio in order to really reap the benefits of real estate investing and use this amazing investment vehicle that brings you in thousands and thousands of dollars a month to help you either retire early or just retire comfortably.