Retirement Crisis


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  • Cash flow from real estate is the solution to this looming problem

    America’s long-term challenge #2: the looming retirement crisis

    Yeah, I’m pretty much in freak-out mode over my retirement. I was there before reading this article, though.

    People don’t realize that as employees they work for one-time money which means they have to continually trade hours for their money and their livelihood. A good salary can lure you into this feeling of wealth, but it is only shadow wealth.

    And this is why I’ve entered into the real estate world to establish durable income streams and some kind of wealth.

    So challenging to have a full-time job which takes your time and energy and leaves you with little time to establish a rich network of financial friends and investment opportunities. It’s that kind of thing that makes it pretty certain most people will never escape the rat race and even after working all their lives they’ll have an austere retirement.

    There is still time for many of us that have taken the red pill.

    Every month with my tour business in Panama, I meet people who are 60+ who have no savings and a ton of debt. They simply cannot afford to stay where they live now unless they work for the rest of their lives. Stress has caused health problems which make it hard to continue working.

    If these people had just 1-2 rental properties it would solve their problems IF they downsized. Most people in the United States and Canada live a lifestyle that takes up all their income with nothing left over for investing or savings. There in lies the problem. You don’t have to keep up with the Jones.

    With 10,000 people turning 65 every day in the US alone, I see a train wreck coming in the US. Can Social Security and Medicare be sustained?

    See what’s happening in Nicaragua when the government announced last month that they need to reduce the amount people get paid in their Social Security checks and current workers need to pay more in to the bankrupt system – knowing that they will get less (or nothing) when they retire.

    Everyone should have an objective to have the home they live in completely paid off by the time they are 50 years old. One way to do that is with wholesaling and other real estate transactions. All proceeds from your deals could be used to pay off your home. Sadly, property taxes are so high in the United States (in most states) that even with a free and clear house, your monthly expenses for taxes and insurance are high.

    I’m concerned about the future of the US. Almost 50% of the people in the US can barely afford the basics

    http://money.cnn.com/2018/05/17/news/economy/us-middle-class-basics-study/index.html

    So, as real estate investors what do we do?

    Do quick turn cash deals to pay off your personal residence and get out of debt.

    Think about downsizing to reduce expenses. Save money.

    Buy rentals with seller financing or subject to the mortgage , if they cash flow. You do not need to get back financing.

    Affordable housing will always be in demand. I do think mobile homes will become even more popular. Be the source!

    Keep learning. The more you know, the more money you will make.

    What do you think?

    Jackie – My wife and I are not in a position to move to Panama, as we are helping our daughter and son-in-law with our 3 grandkids. I am doing some creative real estate investing, but would like to add an additional stream of income. You mentioned that when people go on the Panama Tour, you give them ideas on creating an extra stream of income. Is there any way that we could talk you to putting those ideas in an ebook — I would pay for it, and I think others would, too — that would give those of us who can’t move to Panama at this time some ideas on how to create that extra stream of income?

    Hi Mike,

    It is not necessary to relocate overseas to create a Plan B and start putting things in to place now… just in case Social Security is not there when you need it most. For some, moving to a lower cost state could help. Downsizing to a smaller house helps. Finding ways to reduce expenses now so you can save more for the future is one solution.

    I already wrote the book about ways to make extra money when you live overseas ( works stateside too) but I’m in the middle of updating in. It will be ready June 1st then I will share it with all CashFlowDepot members.

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