Do you want to become a millionaire? It starts with $10K and a consistent real estate portfolio building strategy.
The Big Hairy Audacious Goal of The FI Team is to reduce the US retirement age from 65 to 55. I really think it’s possible for ANYONE to get out of the grind. You don’t have to have a trust fund, be lucky or know the right people. Anyone really can build substantial wealth and retire by 55.
Invest early, be consistent in your investing and build your wealth over time. It sounds straight forward yeah???
I ran some super simple numbers to show what your wealth from real estate investing CAN be if you start investing in your 20s, 30s, 40s or 50s.
Assumptions:
- Each person invests $10,000 per year in real estate investments.
- The annual rate of return on real estate investments is 8% (this is conservative!)
- The investments are held for 25 years, from age 20 to age 45, and then left to grow for 10 more years until age 55.
- Inflation is at 2.9% and taxes at 25%
Investing at Age 20: If someone starts investing $10,000 per year in real estate at age 20, and continues for 35 years, their investments would be worth approximately $1.325 million by age 55.
Investing at Age 30: If someone starts investing $10,000 per year in real estate at age 30, and continues for 15 years, their investments would be worth approximately $625,000 by age 55.
Investing at Age 40: If someone starts investing $10,000 per year in real estate at age 40, and continues for 5 years, their investments would be worth approximately $270,000 by age 55.
Investing at Age 50: If someone starts investing $10,000 per year in real estate at age 50, and continues for 5 years, their investments would be worth approximately $75,000 by age 55.
As you can see from this analysis, the earlier you start investing, the richer you will become as your investments have time to grow and compound.
The difference between investing $10,000 at age 20 and age 50 is well over a $1 million difference. So, let me ask you, do you want to be a millionaire? What are you waiting for? Let’s look at some properties you could house hack THIS summer.