Some people think, “I’ve paid taxes all of my life; let the government take care of me in my retirement.”
Thirty years ago, that may have made some sense. At that time, there were 7.5 Australian workers funding each retiree.
Today, there are just five workers per retiree. If the current trend continues, it’s estimated that in 30 years, there will be just 2.7 workers toiling away to support each retiree. That’s not a sustainable equation, which is why it’s more important than ever to plan ahead for retirement and to “get it right.”
Planning for retirement with real estate
The above scenario isn’t meant to scare you. It’s meant to alert you to the reality and encourage you to develop an investment portfolio that allows you to become self-sufficient. Well thought out systems allow you to build your capital and then have your money earn for you, rather than having to go to work eight hours a day when you’re 70 years old or older.
Building the kind of wealth that will sustain you now and through your retirement years, and then allow you to leave a nest egg to your children. It is not as difficult as you might think.
It’s all about using your equity or some of your savings to acquire growth assets that will earn more income for you, allowing you to buy more assets that will earn even money for you and repeating the process over and over again.
This will enable you to enjoy ever increasing income now, and also as you get older, without having to compromise and slave for long hours at multiple jobs that you don’t even like.
The beauty of a well thought out system or strategy is that you don’t have to be retired to take advantage of the benefits. It is of benefit all the way through the years. You are able to develop a passive income and use the money for whatever purpose you like – all while still retaining your original investment(s).
If it’s set up correctly, the process begins the very day you acquire your first real estate investment property. You can start earning rental income and significant tax rebates from that first day. However, many people don’t stop at just one investment property.
When they learn the advantages of this system, they often branch into other asset classes, such as shares and businesses. Once they see how easy it is to earn money “while you sleep,” it becomes a natural process to acquire additional growth assets and income sources.