Tag Archives: how to be a property investor

Retirement: 5 tips on how to save $1 million

I am always open to thoughts on how to best use my savings to grow themselves and I’m sure you are the same so when I read & heard this

Retirement: 5 tips on how to save $1 million

I was all ears! We are all living longer but we still want to maintain our own personal standard of living, as well as being prepared for any future health care costs. This is how to be like a good scout and “Be Prepared”

Five tips for saving a cool million by the time you retire.

  1. Start early and take advantage of the power of compounding.
    It only makes sense too make use of free money
  2. Have a plan
    It really focuses you.
  3. Take advantage of your company-sponsored savings plan
    Again the free money advantage. Jeanne Thompson, vice president at Fidelity Investments, says: “90% of the Fidelity millionaires are taking advantage of the catch-up provisions and many are saving up to the maximum. “They are milking it for all it’s worth.””
  4. Use automatic deductions for all your savings.
    If you stick a certain amount on a regular stop order deduction you can’t be tempted to spend it 🙂
  5. The stock market is your friend. You won’t get there just on savings alone,” says Thompson. “It does take some market action.”

Check out the interview with Jeanne Thompson here 

Robert Kiyosaki has his own views and offers this guide to wealth

Lets get our savings growing.
Click here to see how I am growing my investments to reach a million  …

If you could eventually make $4,000 per month with a $300 investment, would that make financial sense to you?

Go well till the next time
www.flipping2retirement.net

 

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To be successful in investing you have to start!

This is certainly true you do have to start!

I think a lot of folk are put off by not  believing they have enough to invest, I certainly thought we only had the pension. But I was wrong! I started with just US$100 and have slowly added to that each month. There is always a little over at the end of a month that I’ve managed to save. No coffees in restaurants, this month 🙂 It all adds up.

Then I have watched our pension being invested in the traditional way and thought but we don’t live in traditional times any more!
I personally think it’s time to rethink. So I have. I have looked around for other ways to make my money work for me in small amounts, purely and simply because I don’t have huge amounts

I found that I’m not alone. There are many investment houses opening up to the idea of crowd investing using comparatively small amounts of money, primarily in property but not entirely.

Crowd investing means you use smaller amounts of your money spread over many more investments giving you quite a portfolio.
It also means that if one doesn’t perform as anticipated only a small amount of your money is effected. I like that idea and I’m very comfy with the idea of sharing in the buying of a property with a gang and then sharing in the profits too.

In the UK with the new pension rules coming into play in April, to me it makes sense to hold control over your money on a shorter term than the normal stocks and shares allow. As I understand it investment in stocks requires you to be vigilant quarterly but to not really expect much till about ten years have lapsed. I know this is my very naive version but I also think I’m not alone. So to me to put my money into several properties that are either flipped or kept for only a couple of years as a buy and hold rental property makes real sense.

Chinese investors are likely to buy $20 billion worth of properties overseas in 2015, up 21% year-on-year, forecasts Jones Lang LaSalle.

The Chinese wouldn’t be spending so much if they were unsure – would they?They seem to be canny investors generally, so I’ll follow suit in, this year of the sheep.

Since I took control of our savings and I got educated I’m feeling confident that the choices I have made are good and they are certainly offering up some good profits to date. Way better percentage returns than any bank could offer and I feel more secure than leaving it to a third party investing in stocks

Go well till the next time
www.flipping2retirement.net
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Investing is a plan

 “Investing is a plan, not a product or procedure.”

My Financial education has been coming in drips and drabs all my life but the real kickstart only came five years ago with the awakening jolt of early retirement being thrust at us.

My husband and I were forced to look at our various pension plans and put together a detailed financial plan. That was a cold shower of note, the realisation that we really did not have the funds to retire yet! Does this ring any bells with you too?

What were we going to do about it? – A plan was needed but it had to be achievable/believable because in this position you can’t afford to not reach the goal.

Our plan formed itself into a

  • He’ll work for the cash
  • She’ll get educated on how to grow the money

My husband went back to work and I got financially educated and shared with him.
Robert Kiyosaki’s Rich Dad course was instrumental in helping me focus and untangle all the figures until I could understand what we had and what we needed to have. You might find that like myself you have left it a bit late, but rather late than never.

I also played Kiyosaki’s Cashflow game online. It was a fun and simple way to drum into my head where the priorities lay when trying to get out of the hamster wheel and head towards financial retirement freedom. It’s different for each of us but if you have a plan you are well on the way to getting there.

What have to learn and How to do it

  1. Determine Where You Are Today – you need an accurate picture of where you stand financially today so make your financial plan (Rich Dad has a great forms to help you)
  2. Set Your New Goals – Do you want to be Secure? Comfortable? Or Rich? No good just saying rich either you have to see what rich is to you and then decide if you are really prepared to work hard and smart enough to get there. Most of us just wish we were rich the effort to become rich we find is too far outside our comfort zone so we pass but tell ourselves all sorts of stories to make it acceptable to pass on doing the work. Identify your deep-seated reasons why you want to be rich then you have your own incentive; not something fluffy and nebulous.
  3. Take Control of Your Cash Flow – First look after your “disposable income” and make it a little less disposable by cutting out the unnecessary bling from your spending – Invest it instead. With a bit of education of the right sort you can learn to look after your own finances and, I must say it is very comforting, to realise that you can understand what to do and are not solely reliant on others informing you on investment performance once a year. Stock crash victims will know what I’m saying here.
  4. How Are You Going To Get There – Again this is dependant on your personal preferences set out in your plan (mine was property rather than the stock market) The idea is to convert your earned income into portfolio income or passive income as efficiently as possible.
    This will not only put your money to work for you but also increase the chances that your funds will grow.
  5. Become an Investor – You might find this idea scary and risky because your family and friends and maybe you have lost but how else does money grow? – Certainly not in the bank!
    Risk is in everything we do from crossing the road to driving a car but we learnt how to do both of those well enough to make the risk acceptable enough to enable us to cross roads and drive cars!
    All you have to do to lessen the investment risk is to get educated.
    Take your ‘financial investors licence’ then when you invest you can do it having analysed the market knowledgeably and continuing to watch it with your educated eyes and to know when to take any action. Become your own best asset, instead of your own liability. 

Kiyosaki says
Be prepared for anything. Don’t try to predict what will happen or when.
The Zen swordsman disciplines body and mind to counter any blow spontaneously. He does not anticipate the moves of an opponent, for that impedes his ability to react. Likewise professional investors know they cannot control the real estate or stock market, let alone the global economy. Instead, they train themselves to be financially intelligent, to think confidently and creatively when opportunities or problems arise.

“Skilled investors are in control of their investments; employees are under the control of their employers.”

Finally:
Learn to trust that, when a good deal presents itself, There is risk in every investment, but risk is a relative term. Since risk is often directly proportional to reward, anyone who hopes to become wealthy must be able to invest more aggressively than someone who’s content to be secure. The more financially educated you are, the less risk you’re taking.

Rich Dad Tip
“The reason most average investors lose money is because it is often easy to invest in an asset, but difficult to get out. Your exit strategy is often more important than your entry strategy.”

Invest away till the next time – go well
www.flipping2retirement.net

Are there Rules for investors looking to get into property?

I found an article by Chris Gray host of Your Property Empire on Sky News Business channel and CEO of buyers’ agency Empire totally enlightening 

He explained that because we are all so different we have to look at plans for retirement differently too. One man’s meat is another man’s poison as the saying goes.

However even though we may be at different stages of our lives and have different attitudes to risk he points out that there are some “Golden Rules” to adhere to.

Even though I’m not against a bit of risk I do like the odds stacked in my favour if possible and Gray agrees that our investing should give us the best possible chance of profiting while taking the least amount of risk and cautions us to “Concentrate on the numbers”

Maybe because math doesn’t come all that easily to me I am always out with the spreadsheet and plotting the numbers; so I’m on track there ….
However the trick is, I guess, to listen to them regardless of what you feel emotionally. Investing is not an emotional pastime I have found and in property the numbers almost shout at you!

Property as with all investing needs time so focus on the long term is paramount. I have started my investing on a small scale but having worked the plan through I know what I have to do and exactly for how long, until I can truly say, I am able to retire on the passive income the investments generate.

I have learnt that the best location you can afford is a must and unless you are flipping a property then the idea is to hold it and only sell if you can better the deal and returns ie rents by doing so otherwise your profit disappears in fees and charges.

There will always be a high demand  for property in good suburbs as they tend to sustain high prices, so it’s best advice to buy more and build up your portfolio if you have the knowledge and are prepared for the work it entails.

Gray says
I would much rather have $2 million worth of property with a $2 million mortgage, than have a $500,000 property paid off and $500,000 in equity.
If the market moves up 10 per cent, my $2 million rises by $200,000, however my $500,000 property rises by just $50,000.
Over a decade, I would aim for my $2 million to double to $4 million rather than have the $500,000 doubling to $1 million. It’s more risk in the short term, but it pays off in the long term.

I have also found out the hard way that you need a cash buffer to take care of the calamities that cross our investing paths. Without the cash you land up having to sell during a calamitous time, which kind of defeats the whole object of investing doesn’t it?

As we cannot be an expert in everything we do, we still need to seek out professional advice to help us make educated and calculated decisions. plus it might cost a bit but it is so inspiring seeing things through their eyes and realising what can actually be done. I love my frequent visits to my accountant, I always come home with something to look into and understand a bit better.

After one such visit I had a total epiphany and rethought our whole retirement plan! As I said I’m not averse to a bit of risk and something a bit different. ‘My bit of different’ seemed to be the only way I was going to every be able to actually retire so I was delighted when my due diligence and numbers all agreed!

Gray also agrees “If you do average things, you get average results. Most people work a 38-hour week and don’t retire until they’re 65.
If you want to create more freedom and choice in your life, often you need to do the opposite of what a typical person does.”

It’s often quite a challenge to go against the grain but often that’s what it takes. So do your homework, check for any possible downsides and then go for it. I did just that with Flipping 4 Profit and so far so good. I get the odd look from some people but some have seen it as I have – the way to the light at the end of a tunnel.

My retirement is on track with an achievable end goal now, Phew!
Is yours?

So, Go well till the next time 🙂
www.flipping2retirement.net

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Is Your Financial Advisor Messing with Your Retirement?

Regular readers may know a little about me but when I saw an article the other day asking this question I thought, oh dear, I’m not the only one needing to make a plan.

More importantly, what are we all doing about it?

I do not have any resources to draw on other than my failing stocks, which are still tied up for another *** years. I cannot afford to put up my hands and say “C’est la vie!”not if I wish to eat once I retire! Much more importantly though, I have a pretty long bucket list that I would like to tick off satisfactorily.

So off to work I went.
The question is, what on earth is going to fill the hole in my current bucket which is loosing money at a disastrous rate?

I have scoured the Internet and read several books and taken several courses to best arm myself against more bad judgement calls.

I am currently on a course putting together the means for me to earn a reasonable passive income from the Internet with my long-time business guru Peter Carruthers. I did battle with an idea of what to do but now I’m busy researching my ideas to see what will gel. With Pete by my side I know it will work as he is passionate about helping us all have enough to retire on.

My Dad was a quantity surveyor and my brother is an architect and some of that seems to have rubbed off on me as I have always had an interest in property. It seemed natural to look too property for another string to my bow. I have done several courses but realised that the daily cut and thrust was maybe a bit too hectic for me so I looked for a simpler way to invest in property.

Fortunately crowdfunding has taken off in a big way and it has flowed into the property domain. This means I don’t need to find vast amounts of money I can invest my small amounts each month and draw out my percentage of rent payments or sale profits.
That is a really cool idea in itself but the best is that it is totally managed by a company not me! There are various companies to choose from but I found Flipping4Profit had an added tweak to offer. I decided (after much due diligence) to invest with them and explore their added extra which is simply networking the idea to others.

I’ve not stopped looking for other ways to create some income but having done the maths I’m satisfied that if I keep to my plan with these two income making avenues I should now be fine until the day I die regardless of what my financial advisor manages with the money I put into his hands!

I’m going to be OK, are you?
Go well till the next time
www.flipping2retirement.net

 

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Ways to Save For Retirement?

Have you suffered like my previous blog suggested from
analysis paralysis?

I took the big plunge last year – stopped analysing and went with my gut. Do you know what? It’s actually working out just fine.  Here are a few of the ways I used to stop researching myself into inactivity and to kick-start my saving and investing each month. My goal, which is 4 years away, is firmly being visualised.

I decided I wanted to use real estate to invest in but got very disheartened with how to get there but I found a way to START SMALL .  I started with just $100, you can’t get much smaller than that! It was such a relief to find I didn’t need $40,000 to invest. I have time to grow my savings. I will get to my goal figure even though I have started so small.

So the advice I have found is to set yourself a goal to save at least 10 to 15 percent of your income each month for retirement if you’re in your 30’s. If you are older and just beginning then you will need to invest more, 20-25%. If you’re able to do more, wow! Just do it!

The next important step was to START NOW. Hey, once you know you should be saving what on earth are you waiting for. Just do it, NOW! Do not put off retirement planning for your later years. It needs to happen now.

I also realised that I needed to GET HELP, I talked to accountants, real estate professionals, tax professionals, took a course or two. All useful in helping my decision making, simpler. There’s nothing wrong in seeking advice on your finances. It’s wise.

Having started, I have to keep going, it is important to MAKE A HABIT out of saving/investing.
Our savings won’t grow if we don’t make it part of our monthly routine. I found the more I do it, the easier it becomes.

TAKE THE RISK – All investments have an element of risk but if you want to make your money grow, you’re going to need to take a few risks. We have previously discussed how to use a balance of research and gut feeling to get it right for you. If you need help there is plenty out there, go and speak with a financial specialist on the best options for your goals.

Have you notice how rich people always LOOK FOR OPPORTUNITIES. So be awake, so as not to miss when opportunity knocks. See it for what it is! One opportunity if you work for a company could be the company savings platform. It makes perfect sense to use this to build your future pension because the company matches your savings. What shopper/saver can turn down an offer of 2 for the price of 1? Surely it has to be a no-brainer?

Of course you cannot do any of the above if you don’t BUDGET. You can’t save more than you can afford. I have read that a good rule to follow is the 10-10-80 rule–where you save 10 percent of your income, invest the other 10 percent, and live off the remaining 80 percent.

Finally, *Madamenoire wisely points out  that “If you don’t put away for your retirement, you aren’t going to have money for yourself, let alone people who might need to depend on you.

Hope this helps kick-start your savings Remember to  START .

Go well till the next time
www.flipping2retirement.net
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Investing: It’s a Worldwide Phenomenon

 “I think it’s a worldwide phenomenon that people tend to only look at their financial affairs when they’re in dire straits or when there’s a significant life event that forces them to do so…” says PETER HEWETT MD, Efficient Group SA

If that is so how do we stop ourselves becoming a statistic? When should we start our financial planning?

We all know in theory we should have started saving with our first pay cheque – but life has a habit of getting in the way and we don’t always keep to the Grand Plan…

So what should I have in place as I roll towards retirement?

  1. An Emergency Fund – it should normally be around three months of your monthly income, to ensure that you can cater for those sudden unexpected short-term emergencies, 
  2. Make an Investment Plan – Create an investment plan so you have a disciplined approach to investing throughout retirement  (Tick)
  3. A Retirement Budget – You must come up with an accurate estimate of what you spend now and what will change after retirement. (Tick)
  4. Health Insurance Options – How to cover medical expenses and health insurance and included them in your budget? (Tick)
  5. Make a Retirement Income Timeline – Make a retirement income timeline to show  when different sources of income will begin matched against potential retirement expenses (Tick)

Well I’m on the right track – how about you?
I just need to keep to it now … watch this space I guess 🙂

Go well till the next time
www.flipping2retirement.net

 

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