Let your retirement funds start working FOR YOU…

Let your retirement funds start working FOR YOU…


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We all have dreams of travel and relaxation in our retirement.

 

CNBC suggests that the rate of saving for retirement has slowed significantly, mostly pertaining to millennials. The younger the generation, the lesser the savings. Although there are still ‘super-savers’ keeping the means high, the median rate is almost terrifying:

 

 

 

 

 

Mean retirement savings of families between 38 and 43: $67,270

Median retirement savings of families between 38 and 43: $4,200

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Mean retirement savings of families between 44 and 49: $81,347

Median retirement savings of families between 44 and 49: $6,200

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Mean retirement savings of families between 50 and 55: $124,831

Median retirement savings of families between 50 and 55: $8,000

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Mean retirement savings of families between 56 and 61: $163,577

Median retirement savings of families between 56 and 61: $17,000

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Mean retirement savings of families between 50 and 55: $124,831

Median retirement savings of families between 50 and 55: $8,000

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Mean retirement savings of families between 56 and 61: $163,577

Median retirement savings of families between 56 and 61: $17,000

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With the fear of no Social Security for today’s millennials, you would think the saving would increase. But it has significantly decreased from the times of our parents. So, what will our young people do when they reach retirement age? In all likelihood … WORK!

Part of the issue is the company profit sharing, meetings regarding investments and retirement and talks of social security not being so secure are minimal. And it’s not a subject taught in schools and is likely not a topic of conversation at home around the dinner table either. But maybe even more significant than that, for those who do have savings accounts, 401Ks or other retirement funds, is the minimal interest you gain on your investments.

So, we often see people well over retirement age in the workplace, simply because they have no other alternative. And what can they do about that now? It’s too late, right? Wrong!

Did you know you can invest without taking any money out of your pocket and increase your retirement revenue at the same time? That’s right! It’s called “self-directed IRA”.

A self-directed IRA is simply that. It is a retirement fund that you direct yourself. YOU make the decisions where your money is invested. YOU direct your funds to where you can make the most return on your investment. And in today’s marketplace, the highest return on your investment is typically in Real Estate.

Is there risk? Of course. Any aggressive strategy to increase your rate of interest on an investment involves some risk. But in Real Estate, the risk is minimal because you have the property as your collateral. For all intents and purposes, you are part owner of the property you invest in. So, if a party defaults on the loan, you obtain the ownership of the property, which you can then sell to get your funds back.

BEFORE

Let me give an example. Say John Doe has interest in ‘flipping’ a ‘fixer upper’, but doesn’t have the money to either purchase or renovate the property. So, he goes to Jane Doe and asks her if he can borrow $100,000 for a period of 6 months to a year. He agrees to pay her 8% interest at the end of the project (which is typically a great deal more than any savings account interest or 401K). She taps into her self-directed IRA and loans John the $100,000. He closes on the house, which he paid $20,000 plus closing costs of Jane’s money for and takes 2 months to rehab the property, spending another $50,000 of Jane’s money for the materials and labor and additional funds went toward upkeep, holding costs (like utilities, taxes, insurance, etc.). He then puts the property on the market for sale at $150, 000. He sells the house within 6 months

AFTER

for list price and uses more of Jane’s funds for the Closing costs. At Closing, a check is written to Jane Doe in the amount of $108,000. So, John makes $42,000 (not bad for a couple months work) and Jane gets her money back, plus interest, making $4,000. And what did she have to do? Not a thing except lend the money. Sounds like an easy $4,000. That’s because it is. Then, she can lend it again and continue the process, lending $104,000 on the next project and so on.

Personally, I make just one of my lenders around $10,000-$13,000 a year toward his retirement. That allowed him to retire recently and now he gets to use that money to live on. And of course, if you have more than that to loan, you can invest in numerous projects.

 

 

 

 

Why work when you can let your money work for you? We all want to leave a legacy for our children and grandchildren. But it’s even better when you can earn money and spend time with them at the same time! Start saving for your future NOW! It’s never too early or too late. Feel free to give me a call if you want to learn more. I am happy to help you understand the process and direct you to the appropriate professionals to get you started on your way to creating your legacy.

Julie C Baker, CEO/Owner

Jazzed Estates & Property Solutions LLC

518-491-1383 ~ info@jazzedestates.com

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