People I meet often ask, “Should I invest in income producing property (IncP), would that be a smart thing for me to do?” My answer is always the same. If you have a natural curiosity or interest in real estate, yes! If you are motivated to make money and willing to expend the time and effort and learn to invest successfully, then yes, absolutely! When it comes to pre-retirees, the following groups should consider investing in income producing property:
- Underfunded – Several retirement calculators indicate your current savings balance is significantly below the desired level for someone your age.
- Skinny Nest Egg – You are “on target” and fully invested in the stock market. You are counting on those 10% annual gains and growing concerned, based on the real stock market returns since 2000.
- Anti Liquidate – Your plan to live on just the interest and dividends is looking like a stretch. Spending down the nest egg will keep you up at night and might lead to miserly or eccentric behavior!
- Max Legacy – Your want to leave a significant sum of money to your heirs or favorite charity, without compromising your lifestyle during retirement.
- Retire Early – You want to create a sufficient income to escape the employment “rat race” and travel, volunteer, go back to school and chase your dreams!
For those with a system for investing in the stock market that consistently beats the DJIA, forget about real estate, borrow all the money you can and go for it! If you have other investment alternatives that produce superior returns with less effort, pursue those first. For everyone else, if you are motivated and willing to invest the time and effort to be successful with IncP then start today!
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