January 9th, 2024 6:11 PM by Eric Willner
Radio Show Notes 01/09/24 Tuesday:
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"Financial Freedom Awaits: Unleashing the Power of Real Estate in a 5-Year Plan"
By Eric Willner, Host of The Real Estate Show, America’s longest running daily radio show about real estate.
Welcome to The Real Estate Show – South Florida’s #1 Real Estate Radio Show and America's longest-running daily radio show about real estate. I'm Eric Willner, your host, and the Voice of Real Estate, bringing you the Tuesday Tools, Tips, and Techniques Edition. Today, we're diving into the theme of the week: 'You can Retire in 5 Years rather than 40 Years' in Real Estate.
But before we unravel this transformative concept, let me ask you a vital real estate investing question: Did you know 'living paycheck to paycheck' isn't just a temporary phase for 60% of Americans? Is your future built on shaky foundations?
Today’s show is about 'You can Retire in 5 Years rather than 40 Years' in Real Estate and how crucial understanding the mechanics is to a plan of Real Estate Success. But before we get into the meat of the show, let me remind you of this week’s special FREE Workshops:
Tuesday 8 pm - Path To Home Ownership Introduction – Online by Invitation
Wednesday night 8:30 pm - Financial Edge University Overview – Online by Invitation
Now, let's tackle a real-life scenario. If I wanted to retire in five years, aiming for a monthly income of $5000, and I had an investment that paid 10% per year, how much money would I need?
To calculate this, we need to determine the total desired annual income, factor in inflation, and calculate the present value. Remember, this is a simplified calculation and it's always advisable to consult with a financial advisor for personalized advice.
To calculate how much money you would need to retire in five years and earn $5000 per month with a 10% annual return on your investments, we can follow these steps:
1. Determine your total desired annual income:
$5000/month x 12 months/year = $60,000/year
2. Factor in inflation:
It's important to consider inflation, which erodes the purchasing power of your money over time. Let's assume an average inflation rate of 2%. To maintain a constant $5000/month purchasing power in five years, you'll need to adjust your target annual income:
$60,000/year * (1 + 2%)^5 ≈ $70,405/year
3. Calculate the present value:
Now, using the present value formula, we can calculate how much money you need to invest today to generate $70,405 per year in five years at a 10% annual return:
Present Value = Desired future value / (1 + interest rate)^number of years
Present Value = $70,405 / (1 + 0.10)^5 ≈ $491,202.25
Therefore, you would need approximately $491,202.25 to invest today to retire in five years and earn $5000 per month with a 10% annual investment return, adjusted for inflation.
Remember:
This is a simplified calculation and does not account for taxes, fees, or unforeseen circumstances.
The actual amount you need may vary depending on your individual circumstances and chosen investment strategy.
It's always advisable to consult with a financial advisor to get personalized advice and create a customized retirement plan.
Now, relating this to our ongoing theme, let's bring in the Cashflow Quadrant concept. No matter your goals or career level, the Cashflow Quadrant helps measure progress. It makes you evaluate your current quadrant and determine if you're satisfied or not. It's a tool to think about the big picture and put your goals into perspective.
Now, back to our theme - 'You can Retire in 5 Years rather than 40 Years' in Real Estate. Let's break down the theme in more detail, emphasizing the tools used in achieving your real estate goals for the upcoming year.
But before we dive deeper, a quick break. Today's show is brought to you by TimeFixMyCredit.com. If you're looking to fix your credit and unlock new opportunities, text 'Credit' to the number on your screen during this break.
Now, let's delve into the tools, tips, and techniques for achieving your real estate goals. Starting with understanding your financial requirements, which brings us back to our earlier scenario. How much do you need to retire in five years? It's a question that demands a meticulous plan.
And that plan involves not only financial calculations but also the strategic use of tools like the Cashflow Quadrant. It's about shifting from being an employee or self-employed to the realm of business ownership and investments.
Which leads us to today's key takeaway points:
Strategic Investment Planning: Calculate your financial goals, considering inflation and the power of compound interest.
Cashflow Quadrant Mastery: Understand where you stand and strategize your move towards the investor and business owner quadrants.
Financial Education: Equip yourself with the knowledge and tools needed for success. Attend workshops, like the ones we offer this week, to stay ahead of the curve.
Real Estate Leverage: Utilize the power of leverage in real estate to maximize returns and accelerate your path to retirement.
Credit Repair: A crucial tool in your financial toolkit. Visit TimeFixMyCredit.com and take that first step to secure a solid financial foundation.
Today's show is not just about inspiring thoughts but about giving you actionable tools to shape your real estate journey. Remember, it's not just about listening; it's about implementing what you learn.
And now, another word from our sponsor. Today's show is brought to you by TimeFixMyCredit.com. If you're ready to take control of your financial destiny, text 'Credit' during this break.
To sum up today's show, we've explored the tools, tips, and techniques necessary for achieving a 5-year retirement plan in real estate. Tomorrow, on our Wednesday Midweek Mortgage and Market Report, we'll bring you up-to-date with what's happening in the real estate world. Don't miss it!
Thank you for joining us today on The Real Estate Show. Your journey to financial freedom begins with the knowledge and tools you gain here. Use our show as a catalyst to kickstart your real estate investing journey. Tune in every weekday for a literal seminar in every episode of The Real Estate Show, and don't forget to attend our free online workshops.
This is Eric Willner, signing off on another insightful episode. Have a great day, and remember, your path to financial independence is paved with the right tools and knowledge. See you tomorrow!"
A;so, you can listen to the entire 30 minute broadcast of any day’s edition of The Real Estate Show by clicking on the audio link on that days summary post. You can also watch the Facebook Live video at www.facebook.com/TheRealEstateShow.
Want to know more? If you are serious about real estate and paying off debt, then find out more on today and every day’s episodes and learn more about Real Estate Investing and learn HOW TO by listening to The Real Estate Show with Eric Willner , Live every weekday morning at 9 o’clock (EST) on Florida’s Money Talk Radio stations WWNN AM1470, FM 95.3 and FM 96.9. You can also hear us on the free apps: iHeart Radio and TuneIn. Recorded Rebroadcasts are available 24/7 on Facebook. Please share this and our Facebook updates.
Eric Willner is the Host and Founder of The Real Estate Show, an informative show about how to buy, own, and improve real estate the right way, on autopilot. - The Automatic Landlord way. (AutomaticLandlord.com) You can reach Eric Willner at Eric@Ericwillner.com or 888-595-7779.
Also listen to the rebroadcasts on demand on Facebook.com/TheRealEstateShow
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