Does tax free retirement income for life interest you? Take a look at the EIUL.
EIUL — Video
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Category Archives: Retirement Income
Buy and Hold — Video
Did Grandpa tell you about the real estate investment strategy of ‘buy and hold’? Mine did too. 
Multiple Sources of Income — Video
The whole ‘multiple sources of income’ mantra has morphed into definitions most of us wouldn’t begin to recognize. Here’s my thinking — what’s yours?
Transcript: Hi this is Jeff Brown the “Bawld Guy”. Today, we’re going to talk about developing completely separate stand alone sources of income for retirement. Now, here’s what I mean by that. Everybody wants income from real estate. I get it, and that’s great. There’s a lot of times though, if you have the right factors in your own financial status that you can create tax free incomes. Sometimes, they can be tax free, not tax sheltered, not tax deferred; literally tax free. Sometimes, you can take some of these things and incorporate them in with your real estate investing, such as for example, taking your real estate capital tax free and moving it over to another source of income such that they will not be subject to income taxes by the time you retire. Now look, there’s a lot of ways to do this, and I will give specific examples in another video. Here’s what I want you to take away from this – is that when you invest in real estate and you combine strategies, which is the real value that you can bring to the table, not just use one strategy every time out; when you speed up your growth and capital or you increase your cash flow, you want to see if you can leverage that; such that in retirement, it results in more after tax income. You don’t spend before tax cash flow, you spend after tax cash flow. It’s no different in retirement that when you’re at work. You can only spend the take home pay, so if the income itself by definition of the Internal Revenue code is that it’s tax free, we like that. Repeat that…we like tax free income. Some people can develop so much tax free income by the time they’re retired that their real estate portfolio ends up to be cash flow that is spending money. Their free and clear status ends up to be a de facto kind of default bank, so what I’m telling you is if it’s possible, and I can tell you whether it’s not for you, you want to end up creating multiple sources of retirement income and keep your eye on the ball, and the eye on the ball is what’s spendable, and that’s always after tax. This is Jeff Brown, the Bawld Guy. Thanks for joining me today. I’ll see you next time.
Real Estate Investment Retirement Formulas — Video
What retirement formulas are you relying on to get you to a happy retirement?
Transcript: Hi this is Jeff Brown the “Bawld Guy”. What we’re going to talk about today is some of the formulas used in getting ready for retirement through real estate investing. Now look, I’m an anti formula guy but some of them sound pretty good. Here’s one. You buy a rental home once every year or so until you get maybe 10. You spend the rest of your time before retirement paying them off. Hey, by the time you’re done you’re making some pretty good retirement income. Here’s the problem. Most people are buying in areas that they wouldn’t put their mom or the grandma to live, and I know a lot of people roll their eyebrows when I say that. But the bottom line is this. You’re retired. The property was 30 or 40 years old when you bought it. Don’t say no they’re not because we both know that’s true. Then you’ve got a floor plan that when you bought it was probably really out of style. It wasn’t efficient. People don’t like it. That means that not only do you have an average or worse than average area, but now you’ve got tenants who are just going to look at that and go I don’t want an I Love Lucy kitchen. Grandma had an I Love Lucy kitchen. You couldn’t have two people in there unless they were in love. So here’s the deal. If you’re buying 10 properties and by the time you retire 20-30 years later they’re all half a century or more old and you’ve got some functional obsolescence – that’s what we call bad floor plans, and bad kitchen design, and no appliances, or poorly situated appliances, and super low ceilings. I could go on and on. But the bottom line is you’ve got a bad area number one, you’ve got old properties – oh, did I say old properties? What happens to old properties as they get older and older? Their maintenance expenses go up. Right at the perfect time you’re retiring. Oh! Are you going to manage those 10 properties? Are they right where you live? Are you looking forward to being 68 years old, four years into retirement, and managing these 10 old pieces of garbage? I don’t think so! And no, I didn’t mean to offend you by calling them garbage, but they were garbage when you bought them. They just showed themselves for what they were when you retired. This is Jeff Brown, the BawldGuy. You’ve been warned. Catch you later.
401k vs Real Estate Part 2 — Video
What is it that Boomers and their kids are learning that has been changing their thinking about retirement dramatically?
Transcript: Hi this is Jeff Brown the “Bawld Guy”. I’ve talked a lot about 401k’s and what I don’t like about them, which is most things. There’s one exception, we’ll talk about that later, but I want to compare 401k’s and their end result, the end game, which is a magnificently abundant retirement. It won’t happen using them, but we’re going to pretend that they do, but we’re going to compare them to real estate to show the difference. So you’ve been putting money every month year after year into your 401k and what you have is a whole bunch of money and you’ve saved a whole bunch of taxes during those years and here’s what you have. If you’re one of the 1 percent you have over $300,000. If you’re really lucky you’ve got $1 million. Today $1 million, if you more than double what the ten year treasury yield is, it’s 4 percent, $40,000 a year before taxes. Really? That’s what you slave for for thirty, thirty-five years, $40,000 – before taxes, which is just – what… $10,000 more than your social security, and yeah, I know, I said social security out loud, forgive me. Here’s the main thing, if real estate goes through another bubble or let’s just say the people that were getting ready to retire in 2006, they free and cleared everything and the bubble hit. They had a bunch of properties, they had a bunch of income, they had their retirement cake bought. They’re ready, the invitations are out. It’s time and their $4 million portfolio overnight was $2.5 million. Their income on that might have been – what – eight percent let’s say. They’re making 8 percent on $4 million. That’s a lot of money. What if that was cut by a third? What if it was cut by 40 percent? Oh, no. They’re making six figures a year in retirement, much of it tax sheltered. Tell me again how that $1 million in your 401k is going to be your savior. Tell me how you worked for thirty or forty years to make another $10,000 more than your social security and this is all before tax, really? You did that on purpose to yourself? Think again. This is Jeff Brown, the BawldGuy. Don’t say you weren’t warned. Thanks again. See you next time. Bye-bye.