| | Investment Properties can Enrich Retirement
Ahh, retirement! The day that most of us dream about. The day where we can finally decide what we want to do and when we want to do it!
Someone once said that retirement is like a long vacation in Las Vegas. The goal is to enjoy it to the fullest but not so fully that you run out of money and they kick you out!
The only bad part about retirement is that you will now have to drink coffee on your own time! And the best time to start thinking about your retirement is before your boss does!
The late George Burns had this view: he said, “Retirement at 65 is ridiculous. When I was 65, I still had pimples!” even though he thought retiring at 65 was too early, most of us do not agree. Some of us hope to get away from the daily grind a little earlier than that!
A friend of mine would go to the lottery counter every Friday to “make a deposit into his retirement account”! Hopefully you have a better plan in place for your retirement than that! If not, oh dear!
Everyone views money in a different way. For instance, consider the following question …
If you were given the option of receiving a million dollars today or to receive a penny today and then have that amount doubled for 30 days .. which option would you rather have?
I’m sure most of us would say, “Million dollars today, PLEASE!” Oh, and “Thank you!”
In 2009, MSN made an extremely fascinating video asking several people which option they would rather have. As expected, 90% of the people chose the million dollars today option.
However, what they didn’t take into consideration was the awesome power of compounding!
Taking the million dollar today option, although very appealing and wonderful, would have shortchanged you by over $4 million dollars by months end.
Although a 100% return on your investment every day is highly unlikely, the principle of compounding still applies.
When you are young you are fortunate enough to have an asset that even money can’t buy … TIME! Starting to save early and turn pocket change into a very comfortable retirement.
The sooner you start investing, the better. Take, for instance, this example of a young person starting to save:
Let’s say a 22-year-old saves $300 per month for only 6 years and earns 10% interest. At age 28, after having invested $21,600 of his own money, he decides not to invest another penny.
If the money continues to grow at 10% interest, do you know what this person will have accumulated by the time he reaches the age of 65?
Can you believe that? That’s a big number! Just by putting away $300 per month for only 6 years and not a penny more … this young person would amass over a million dollars, figuring 10% interest compounded annually.
Now … close your eyes and imagine THIS …
What if you could take that money out TAX-FREE when you retired! I just saw that uncontrollable smile that came over your face! Don’t worry, keep smiling, it’s not just a dream, it really can be achieved!
What if you could use money that you have saved in your IRA to purchase a rental property? Then you put the monthly rental checks back in to grow tax-free? We are almost there!