Tag Archives: investment for retirement

They Say: Not all your investments will be profitable!

I think we all go into investing with the idea that
we will make money!

In reality maybe that is a bit starry eyed, especially if you are not used to dealing in whatever investment you decide to invest in.

I got stung with some stock investments under-performing and not really understanding much about what they were or where they were. That was my reality check. It made me decide to do some research, do some training and to take more of a hands on approach to any future dealings with stockbrokers. I also diversified into real estate. Something I knew more about and could deal with better.

So  How can we learn from past investment blunders? 
We  need to learn from our experiences and according to FSPInvest the best way to do this is to keep a diary of all your investments. This could be in the form of a notebook or a spreadsheet.

You need to keep a note of the following:

  • Why you invested. – Was it because someone told you about it? Or was it down to research.
  • How much did you think you’d make from the investment? – Did you have dreams of making 200% or 300% on the stock? What was your exit strategy when you invested (for both losses and gains)?
  • When you actually exited the stock? And what were your actual gains or losses?

Their best plan is for you to  check your diary before you get on the phone to your stock broker to buy anything ever again as It might just save you from that blunder yet again…

It could remind you of  similarities with anything you’ve invested in before and if it does, maybe this isn’t a good investment after all.

Think I’ll stick with my properties… I like a bit of bricks and mortar 🙂

Go well till the next time
www.flipping2retirement.net

 

Sources:

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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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Is Investing risky?

Robert Kiyosaki has said that
“Investing isn’t risky; not being in control is risky.”

I certainly wouldn’t say otherwise as the man is well known for his business success, however it gets you thinking doesn’t it?

We left a big part of our pension to some professionals who, doing their best no doubt, managed to put it in stocks that have diminished our capital by a third already. We have no option but to sit it out and hope the market comes back. But partly we are to blame.

We were very trusting and naive!

  • We didn’t know what questions to ask – so didn’t.
  • We knew less about the stock market.

The realisation that we have lost a third of our life savings was a jolly good wake up call all be it a bit late. We did realise our pension was rather on the meagre side but were rather in denial hoping it would right itself magically! Of course no control was where the risk crept in.

I have now taken courses and become much more educated in the world of investing.
I have taken a much more ‘hands on’ approach  with our savings and investments.

We are no longer ambling aimlessly towards retirement.
We have a plan with structure and vision. It is workable and able to be adjusted.
We are feeling so much calmer knowing exactly where we are headed and how long it will take to get to the end.
Our education has empowered us with new found confidence instead of bleak despair!

With the help of Pete Carruthers, guiding me through the intricacies of Internet marketing and Robert Kiyosaki training me in the property investing world I embarked on both. I have an online business and I am investing in property internationally, with some network marketing thrown into the mix – All with a new found confidence and realisation that it is no more risky than leaving the decision making to the professionals as before. However it is a lot more rewarding and less stressful to be in charge of our own money / future.

Of course I use a bunch of people  to work with. To help in the decision making you need to reduce the risks as much as is possible by researching and asking questions to make  knowledgeable decisions.

I highly recommend it 😀  Why not join me?

Investing isn’t risky; not being in control is risky!

Go well till the next time
www.flipping2retirement.net

 

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Is Our Biggest Fear Outliving Our Money?

This was written by 

*Addressing longevity risks among retirees and self-managed super fund (SMSF) holders who will outlive their retirement savings is one of the biggest challenges facing advisers, one SMSF expert believes.
Australian Superannuation and Compliance founding principal and director, Ravi Subramaniam, said advisers and service providers will need to advise on the long term investment strategies according to the groups’ lifestyle goals. 

Are Boomer Retirees afraid of outliving their money?

Our natural reaction to any fear is to, fight, flee or freeze. taking that there are many of us who don’t talk about money maybe we are afraid and in the freeze or flee situation about our retirement funds. Financial fear often leads to paralysis – where you ignore your money problems and hope they will somehow go away.

There’s one small hiccup with that idea though – The problem will not go away!

I got such a fright when I did an audit of my pension funds that I started to fight back.

“Playing it safe” by trusting others with my financial future was probably the riskiest thing I did. Were you hit in the same way?

I was one of those people who used to dream of getting rich but found in reality I was just hoping not to lose our home. Robert Kiyosaki says that “Without financial education, you’re at the mercy of the market.” So I took his advice and his tuition. Yes, it cost some but I learnt a lot and wish I’d known it all when I was a lot younger with time on my side. However it did lead me along what I call my ‘retirement salvation path.’ Thankfully I now feel empowered like never before and able to make the necessary financial plan to salvage from our wrecked pensions a way forward to ensure we have money for our entire lives no matter how long we live!

If you don’t have a plan to achieve financial security, what’s stopping you? If you’re not sure what to do or how to do it, then get some help, there’s tons around to choose from.

After doing my course with RichDad company I settled on two income avenues working with Pete Carruthers for one and with Flipping 4 Profit for the other. I have been doing both from the comfort of my sofa and you can too.

It’s not too late to get financially educated and bolster ailing retirement funds.
Don’t let fear cost you money!

Go wealthier till the next time
www.flipping2retirement.net
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Investing in Property is so Relatively Simple

Dolph de Roos in his book Real Estate Riches said

Given that investing in property is so relatively simple and so uniform around the world I am utterly surprised that most people still only consider owning investment properties within a few miles of their home

That reinforces for me my earlier conviction that I needed to invest in property but not in the country I was living as the currency was dropping rapidly against the US Dollar.

Then today I get an email from Robert Kiyosaki predicting the biggest collapse in history coming possibly as soon as 2016!

It got me to thinking how I could possibly protect ourselves against another financial collapse. I don’t know about you but I certainly can’t withstand loosing the pension again and having to start all over again, let alone suffering all the worry that goes with too little money.

So how can we protect ourselves?
Could property be the answer?

If you are someone who wants to go it alone you may find that in your own area the property market is not at it’s best right now but if you take Dolph de Roos’s suggestion and look further afield you could find what you need.

There seem to be many countries where it is smart to be buying property right now and the Internet can guide you to make your choices wisely. Sometimes its just another state you need to look at . But what he was getting at is that there is property all over the world and nowadays its really easy to do a lot of due dilligence on the Internet so don’t be put off by your local marketplace. Be brave, your foresight could be what saves you in the future if Kiyosaki is correct.

Personally I’m happier investing with my crowd. It gives me people to discuss decisions with and gives us all the convenience of investing small amounts in any one property and not having to do all the hard part of finding and maintaining any of the properties.
We get to choose from a selection of properties around the world and by having a small share of several properties we feel pretty secure not to ever be in the unenviable position of having all our money falling at the same time. Hedging our bets I call it!

I think I am doing all that I can for my family. How do you feel? Are you financially secure against another collapse?

 

Go well till the next time
www.flipping2retirement.net
Sources:

  • Dolph de Roos – Real Estate Riches
  • Robert Kiyosaki – Rich Dad Poor Dad

What Role Does a REIT Play Your Retirement?

What Role Do REITs Play in Your Retirement Savings Plans?

As we Baby Boomers move into our retirement years, for the first time ever a larger segment of our society will come to depend on retirement plans for their income.  We will statistically also be living longer. Unlike our predecessors Baby Boom retirees will have to live on their retirement benefits for an additional 20, 30, or even more years!

* In the United States, the median life expectancy of a 65-year-old man and woman is 85 and 88, respectively. However, because the “median” represents the exact mid-point of the group’s age range, half of this population will live longer, often much longer, than the median life expectancy.

Boomer retirees could spend up to a third of their lifetime in retirement and this has caused some headaches for retirement planners. Retirement companies now more than ever must select investments that deliver a consistently high level of income to meet the needs of the baby boom retirees, and also generate portfolio growth to ensure that the needs of retirees are met three decades in the future! Oh, and don’t forget to offset the effects of inflation in the process, please.

As with so many of us who are looking around for sensible investment avenues they too are turning more towards real estate, including REITs, for solutions to their problems.

  • * The requirement that REITs pass at least 90 percent of their taxable income through to shareholders in the form of dividends makes them a strong income generating investment.
  • As stocks, REITs also provide the opportunity for capital appreciation. This combination of investment characteristics makes them effective in extending the lives of retirement portfolios.

 See how I’m using a REIT to make sure I retire happier and wealthier

Go well till the next time
www.flipping2retirement.net

Sources:

Why is Passively Investing in Real Estate Critical for Retirement?

I love this article from Bigger Pockets . I have taken some salient points which made good sense to me

Passively Investing in Real Estate is Critical for Retirement

Passive real estate investing allows investors the freedom to choose when to retire and without passive income, many will not be able to do so.

Definition of Wealth

What is wealth? Have you ever really thought about it? Or more importantly, have you ever thought about what wealth looks like for you? Wealthy is when we are able to stop… to stop doing the things we have to do so we can do the things we want to do.  Each of us has a lifestyle that we live and hopefully we have identified hobbies or activities that we enjoy; wealth is simply a mathematical equation that tells each of us how long we can enjoy those hobbies and our lifestyle before our funds run out!

Here is a simple mathematical equation for determining wealth:

There are many retirement forecast sites you can visit (**some are at the end of this article)  but essentially this is the equation and it’s easy enough for me to do it!

Balance of Accounts (cash on hand, retirement) = Retirement funds:

Monthly expenses (Mortgage payment, car notes, living expenses, insurance, required funding):
Monthly passive income (Net cash flow after debt service & expenses):

Monthly Expense - Monthly Passive Income = Total Monthly Flow (Positive or Negative) Multiply this number  by 12 to get Yearly Flow

Retirement Funds/Yearly Flow = number of years

*Ideally your passive income is larger than monthly expenses, but for most, it is not.  Subtract the passive income from the expenses and divide your Retirement funds by this number and you have how many years you can maintain your current lifestyle before your funds ran out.  Most people are often surprised to see that after a short handful of years their funds are gone. 

Since very few of us are built with the notion that working until our last day is our idea of enjoyment, putting together a plan for growing passive income becomes critical for securing a comfortable retirement.

Develop Passive Investments for Retirement

By adding passive investment properties to a portfolio, an investor gives themselves the freedom to choose which activities are most important to them

Passive Income and Real Estate Investing

I’ve  flipped some properties and I hold some as a long-term rental.  Essentially, I do nothing except choose what I wish to invest in today!  I leave the hard work to others who manage the whole process I simply just enjoy choosing what to invest in today!

Luckily, I am building a  ***passive income that will allow me to experience retirement on my terms for many years to come

Go well till the next time
www.flipping2retirement.net

 

Sources:

  • ***www.flipping4profit.com/waterfall
  • **http://www.mutualofomaha.com/tools/calculators/retirement-planning/how-will-retirement-impact-my-living-expenses.php
  • **http://www.dinkytown.net/java/RetirementDistribution.html
  • *http://www.biggerpockets.com/renewsblog/2011/11/08/passively-investing-in-real-estate-is-critical-for-retirement/