It’s easy to stay within a comfort zone. People tend to like structure and doing things that go against the grain of our norm makes us uncomfortable. So we settle. We settle in our relationships. We settle into that cube at 9am a-type-type-typing until the end of the business day and on Fridays, those of us who manage to squirrel away our little monetary nuts are hopeful that we can secure a nice little “nest egg” to cushion us in our retirement. At age 65.
A man reaching age 65 today can expect to live, on average, until age 84.3.
A woman turning age 65 today can expect to live, on average, until age 86.6.
And those are just averages. About one out of every four 65-year-olds today will live past age 90, and one out of 10 will live past age 95.
That means at 65, you will have to have saved at least 20 years worth of money to carry you to the end of your life expectancy (IF you don’t plan to work). Those are the figures as of today. As medical technology is enhanced, that number is going to increase (this is barring any pending zombie apocalypse or ISIS disaster – the latter of which being more probable).
I don’t want to be the average of my associations. I have recently set a B.H.A.G (Big Hairy Audacious Goal) of retiring at age 45 with enough passive income to pay my bills and live comfortably. The vehicle to support this will be through ::drumroll:: real estate investing! I’ve already selected a niche – buy and hold multifamily. Initially, I was thinking of “getting my feet wet” by purchasing a duplex or triplex. But as I get more pumped up listening to podcasts and observing men and women who have already gone balls to the wall, I figured why not just jump in and buy a small complex?
As I say frequently on other things that is applicable to real estate as well, there are so many incompetent people that are achieving success in their ventures. Why let insecurity get in the way of at least making an effort? And if I wind up belly up in a cardboard box waterproofed with saran wrap, I will divvy it into segments and rent out the corners. Then I will monetize the experience by turning it into a book – no one’s written about that before, BOOM!
Do you have any investments or royalties from products that are pumping out passive income for you? Did you get an early bid into the compounding interest game and already feel secure with what you will have amassed by your intended age of retirement? Are you biting your teeth in anxiety? Let me know in the comments below.
Bigger Pockets (blogs, webinars, forums – oh my!)
Jake and Gino (blogs and podcasts – two normal guys who have escaped Kiyosaki’s “rat race” in the course of a few years by going balls to the wall)
Rich Dad Poor Dad by Robert T. Kiyosaki
Automatic Millionaire Homeowner by David Bach