You got a $500,000 investment portfolio,
That can get paid a 5% annually return of investment.
5% of $500,000 is $25,000 per year.
Why living out of the ROI?
Let's be clear:
Your goal is to get passive income... correct?
Now let's do some numbers and strategies:
You want to minimize your expenses and you plan to buy a home,
like a duplex,
where you can rent one side and live in the other one.
Rent will help you to pay your mortgage and secure passive income.
You will put 5 to 10 % of your purchase price as down payment to buy a property, financed with a 30 year fix mortgage.
Let's get real:
This means, Investing in California, easily, an amount of $25K to $50K as down payment.. then having a monthly payment
average $2500/month that can be shared with other tenants because is a duplex and you live in one of the units.
Then you could buy physical goal or silver.
Remember if you invested $10,000 worth of physical gold purchased in 1970,
today it would be worth $250,000 in 2016.
But lets get real,
the majority of your investing process will be done monthly... little by little.
in paper assets, with index and variable products and strategies that can give you from 8 to 15% Return of investment.
Let's get the numbers clear:
Every $25,000 at 9% will double every 8 years...
In 30 years, your money will double 4 times... you can expect every $25K to be $100K in 30 years.
Now let's re-calculate
House paid in 30 years, free and clear.
$500,000 purchase price will have equity.
Let's assume a conservative property in California, will double $1.000,000 in 30 years. 30 years later, you own this home free and clear.
Question: would you live there or sale it?
remember you can be equity rich and be cash flow poor.
But if you sale this home... where would you go?
other houses will cost the same...
Please considere your options. Buy a rental that later in life can be a primary residency is a good idea.
Selling this home will have advantages and disadvantages.
A reverse mortgage, must likely will erase your patrimony.
But can be considere for the right cases. Like properties in rundown neighborhoods.
Your $10,000 initial physical gold portfolio would be probably close to $200,000 in 30 years...
Your paper assets will reach at least $500,000 conservative if you committed to save at least $400/month and you plan to save for 30 years.
remember is 30 years action plan. Maybe that super expensive car now is not a good idea. Maybe investing those $400 monthly is a good idea.
How much money would you get paid per month?
from a total of 1.5 million
75K annual income approximate... correct?
$6,250 per month.
BUT before you start
ask yourself this question:
What would you do if you get cancer?
a stroke or a heart attack?
or you get hurt in a car accident?
how you keep all of this investments plan together? How would you earn money to pay your mortgage?
You need a tool to answer that...
You also will need a tax strategy optimization to your accounting system.
And finally a legacy transfer plan because if you become famous
and you died,
you will have the same problem Prince had when he died... no Living Trust.
Just a quick not about inflation: 1 pack of bread now in 2016 is $4 but by year 2035 would cost $16.
Yes, all will cost at least 4 times more...
So take action and save and invest with a purpose now.
Join us at Wine, Women and Wealth Expo
Are you ready?