How well are you feathering your nest egg?
When I was in my early 30’s, I started a small business from scratch. Over a period of 16 years, it grew into a $1.8 million dollar business. This might lead you to believe that what I earned out of that business would have been enough for retirement. However, what usually happens to most high earners– spending and lifestyle rises to match earnings—happened to me.
What is amazing is that I didn’t see this happening, and the illusion of putting “enough” money away for retirement wasn’t apparent to me. You, too, could get fooled, thinking that your earnings will be the same after retirement and that your lifestyle won’t change. Many people have as reported in
I was fortunate to have a plan and desire to retire by the age of 45, so I did avid research to see how to make this possible. What I discovered is that the very wealthy know how to create future wealth. They know that over time investing in well-selected real estate creates a constant stream of income.
I heed great advice especially when I hear it over and over again from reliable sources.
So I’m here to tell you that taking this advice worked for me. I continued to build and run my core business then parlayed part of my hard earned money into real estate investments.
I learned how to gather, read and understand the financials on all investments and learned to only buy properties that were going to give me at least a 10% return after all expense were paid. What I started to discover is that the properties located in up and coming urban areas gave me a 20-30% return and some as high as 50%. The properties that generated the highest yield needed a little bit of work to bring them up to the standard I wanted to provide for my residents.
I accumulated a small portfolio that immediately added an additional stream of income, was easy to maintain, and helped to build future wealth. Several of the properties appreciated by 40% within five years because the urban area I selected became very desirable neighborhood which only increased their value.
Bottom line— I retired financially well off at the age of 45. It wasn’t because of my core business, it was because I heeded the advice of wealthy businesspersons who knew the secret to create future wealth is through real estate investments.
How about you? How are you investing your hard earned money for your future? Are you aware of the return you will receive from your current nest egg?