Many people don’t ask that question because to them it seems obvious. The answer of course is the same reason they’re now becoming investors. I’ve asked literally hundreds of people why they want to become investors. Almost every time their first reaction is a superb impersonation of the RCA dog, followed quickly by an answer they hope sounds plausible. It’s not that they don’t have a very solid, well reasoned motivation. They do — they’ve just never been asked to explain it.
I’ve learned much by listening intently to their stories. They seem to go through a period of new awareness. Their current financial position begins to clarify itself in a way that nudges them to begin looking forward. As they do this a new anxiety makes it’s presence known.
They have an epiphany.
They’re going to be working well into their 70′s ‘cuz retirement is lookin’ pretty bleak. It wasn’t gonna be golden before Wall Street’s recent pratfall. Imagine what their 401s look like now. ‘Nuff said. Something new — a different approach must be out there.
They’ll have Social Security plus their savings. In other words they’ll be living on the same take home pay of the assistant manager at the local MacDonald’s.
Their next thought is often something like, “How can I super-size that our retirement?”
Almost predictably the next question is, “where do I get money to invest?” Their minds start working on that problem diligently. They bother everyone at work. They talk with their husbands or wives. The anxiety is not only growing but has now it’s spread to their spouse. The soon to be new investor now has two heads – and two minds. Uh oh.
But they both soon agree, working that late in life isn’t a choice they want made for them by their inaction. The question is then repeated — “where do we get the money to invest? We simply don’t have it.”
But they do. However, since they’ve been educated at the infamous Grandpa Economics School of (Mc)Retirement, they’re confused. Grandpa’s plan didn’t come out the way he planned. Turns out paying off your home’s mortgage combined with the ‘miracle of compound interest’ wasn’t quite the ticket.
Then it dawns on them.
They’ve owned their home for quite some time now, and ‘cuz it’s appreciated, they only owe about 40-60% of its new market value — even after this latest major league correction. All of a sudden they start recalling random conversations with friends, neighbors, and co-workers who had pulled cash from their homes in order to begin investing. “You know, Jenna was saying just the other day how they’ve made over $100,000 so far with their new investment Plan. Seems they bought some real estate, and it wasn’t even local stuff.”
THAT’S when they ask Jenna how she was able to pull that off.
And now they’re sitting in my office wondering why I’d ask such an obvious question like, “So, what made you decide to become investors?”
Ready to super-size? 619 889-7100 gets you to me every time. Email works too — just click on Contact BawldGuy. Have a good one.
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About BawldGuy
That question rings true in many ways for me. Being laid off, unemployment quickly running out, and the field I specialize in (IT) is slim to none in my area even without this economic downturn and that makes finding a replace J.O.B. hard to do.
So when you ask, “So, what made you decide to become an investor?” the truth is Economic Freedom.
I read Rich Dad Poor Dad and found that it made absolute sense to me. It propelled my thinking from “get a job and work hard” to start a business, tithe 10%, save 10%, and invest 10% and become an investor rather than an employee.
I read book after book, blog after blog, watched TV show after TV show about becoming a business owner and investor. Then I found your blog.
I realize now what it is I want to do with my life and the central hub of it is real estate. I want to invest for retirement but at the same time invest to make a living.
I don’t care if I’m “rich” and I totally agree with what Kiyosaki said.. you are “rich” when your passive income exceeds your life expenses.
Its may sound hard to say but I’m glad I grew up extremely poor (was homeless at times). It set my mental attitude for the remainder of my life in such a way that frugality and a humble attitude to enjoy what I have and not want more than I need were naturally ingrained in me.
I decided to become an investor because of this reason. To earn enough income to pay a little more than my expenses and save enough of the cream on top to retire comfortably.
The layoff has set me back and put me down… but not out. Even with unemployment I still commit to my 3 10′s (tithe, save, invest) and will keep doing so until I stop breathing one day.
Jeff, you have been a true inspiration to me and my family and I know that if I keep reading your blog, picking your brain, and doing what you say (ACTION) I’ll get there soon. Keep up the great work!
READERS — Read Joshua’s comment, and then reassess how you look at life in general, and your retirement specifically. I’m not the inspiration, Josh is. His attitude in times of true challenge is still positive — an unwillingness to be controlled by outside circumstances.
I’m the one being inspired here. I hope he’s inspired you too.
I’m blushing. Wrote the from the heart; hope it helps others. Thank you for the very kind words.