What’d'ya mean why? What an inane question. Maybe — maybe not. When I ask that questions to potential new clients in my office or on the phone, more times than not I get a bit of stuttering or an impersonation of crickets. I’ve surmised over the years that much of the reason for those hesitant reactions is they’ve never been asked to specifically delineate their position.
Whether you’re a current or wannabe investor, how would you answer the question?
These are the most proffered responses — in no particular order.
1. It’s better than not investing, right?
2. We got tired of the stock market.
3. We wanted to increase our net worth.
4. To generate income.
5. Tax shelter. (My least favorite reason.)
Am I tryin’ to get you to believe nobody ever says ‘so we can retire better’? No, but in my experience, that kind of focused thinking isn’t verbalized when given the opportunity. Strange, isn’t it? After all, common sense leads serious thinkers to conclude those who invest long term aren’t doing it frivolously. They at least have a loose outline in their minds of what the end game should be.
Let me give a suggestion of an end game worthy of a Purposeful Plan.
A retirement income sufficiently large, with the ability to grow. It should bring with it enough tax shelter to cover most if not all the income. Said tax shelter should bring with it longevity, and room for income to grow. It should require as little time as possible to oversee. It should be very reliable. It should also allow for the investor to split off a largish chunk of capital, most or all of which is tax free in order to efficiently increase return on invested capital.
Please don’t take that short list as the be all end all of your end game. But it’s definitely a workable template. Abundant retirement income with more than enough tax shelter — and it can grow too!
Reliability of retirement income speaks to the preservation of capital, not the income exclusively. Preservation of capital is Job #1 for any astute investor. There are no exceptions to that rule.
BawldGuy Axiom: Those who don’t make the preservation of capital their number one concern soon learn a painful lesson: 100% of nothin’ is still nothin’.
The more clearly formulated your Purposeful Plan is, the more targeted your end game, the more likely you are to be successful. And for the focused investor, success means a magnificently abundant retirement income.
How’s your plan been workin’ for you? Are you making progress towards your end game? Is your Plan incorporating all the tools you’ll need to succeed?
Give me a call and find out for sure. Can’t hurt, right? 619 889-7100. Have a good one.
Related posts:
- San Diego Real Estate Investors — Why Did You Invest In The First Place? Exactly
- San Diego Real Estate Investors — Some Reasons to Invest Out of State — Try Texas
- Why Do Most Folks Invest In Real estate? No, Really
- The Folly Of Missin’ The Same Bus Twice — Pay Attention Real Estate Investors
- California Real Estate Investors Using 1031 Exchanges To Turbo Charge Portfolio
About BawldGuy
Because its fun?
There is that.
It’s only fun if you are doing it right (or spectacularly wrong).
Real estate is a favored asset class accumulation strategy. If you want to own assets sticks’n'bricks are standout categories. Precious metals (commodities too) don’t send you a check every month. Stocks aren’t really the fractional ownership they used to be. Ask GM stockholders. Bonds? No inflation protection.
On the downside there is the toy fire truck down the toilet issue.
> On the downside there is the toy fire truck down the toilet issue.
I wish I had your way with words.
To quit your day job asap? Isn’t that what its all about? Making everyday a weekend. Thats what its about to me.
but I may be weird, i enjoy managin my properties, cleaning carpets and slappin some paint up on the weekends before a new tenant moves in