Earning For Retirement?
- Thread starter youtalkmedia
- Start date
Why are you thinking about pension at such a young age ? Better use those $300 USD to invest further online and make $3000 USD of them, in 5-10 yeas you will be able to own few apartments, a house, decent car and still have some savings. I would recommend you to invest in real estate, because you will be able to rent it and get a revenue of that every month, 2-3 solid apartments in a city on a good location will get you a very nice sum of money plus you can sell them anytime you want and get your founds back or maybe even get in profit, depends on the economical situation in the city/state/country where you invest in real estates at the time of purchase and the time of sale.
B
Banned member 185991
Guest
I completely get his point.
It's never too early to save, you don't ever want all your money tied up. You never know when you will get hit by a bus or something and need a cushion to keep your head above water.
300 a month is not that much and give him a $125,000 retirement fund (assuming he doesn't increase that rate)
I know your saying invest it and make $3000 but there are no guarantee's in that. (plus, i doubt this is all the money he has every month)
You have no idea what the internet will be like in 30 years...
youtalkmedia
Senior Member
- Dec 5, 2011
- 856
- 390
I do re-invest back into what I do, I just feel it is a good idea to have cash to the side. $300 a month really is not much for someone in my situation, I just want to have something to "fall back on" incase of anything.
I do plan on buying rental as soon as I can, but that wont be till im out of school (No place around me recognizes IM earnings as "real" earnings... so I cant take out a mortgage to buy an apartment building yet.) I am hoping to have my first one (small one) paid off by the time I'm 30. but I cannot start that until I have enough capital.
I am also not sure why people keep commenting on my age. I am just getting a head start while I can, that way I can relax, and retire in my 50's instead of 60's and still have a good portion of my life to relax
Thanks for all the suggestions so far.
I do plan on buying rental as soon as I can, but that wont be till im out of school (No place around me recognizes IM earnings as "real" earnings... so I cant take out a mortgage to buy an apartment building yet.) I am hoping to have my first one (small one) paid off by the time I'm 30. but I cannot start that until I have enough capital.
I am also not sure why people keep commenting on my age. I am just getting a head start while I can, that way I can relax, and retire in my 50's instead of 60's and still have a good portion of my life to relax
Thanks for all the suggestions so far.
- Nov 8, 2009
- 8,887
- 9,192
Save your money in the bank until you get a nice sum and then you will have more options. In the meantime, increase your production by 5% to offset your losses
Yeah, most good funds require at least $10,000, if not more.
Bartholomew
Regular Member
- Dec 31, 2009
- 291
- 105
It all depends on where you live, but imo in many parts of the world it is often better to purchase a second apartments/house and rent it out than keep money in bank or retirement fund. Anything could happen, bank can go bancrupt, inflation can turn your hundreds of thousands into peanuts etc.
youmakeme
Power Member
- Dec 3, 2013
- 603
- 331
Keep the money in a liquid cash fund or T bills. Once you have accumulated USD$50k, move on to invest in Rental property. Based upon your saving rate at the moment, it will take you around 10 years to accumulate this amount along with compounded interest rate assuming that the return is around 3% per annum which can be achieved easily. Repeat the saving rate for the next ten years to save another USD$50k
Use a debt gearing of not more than 50% for your rental property value with a 10 year repayment period. You should have a net return of around 3% per year after paying for taxes, maintainence, etc. Put this money into T Bills or fixed deposit. When you buy your first property, your age should be around 31 years old.
After 10 more years, your age should be around 41. You should have enough to buy two more rental properties with the same debt gearing. Repeat for another 10 years the same process. You will be having three rental properties for rental income at this stage.
When you reach the age of 51, you should have total of three rental properties for rental. All your properties should be fully paid up by now. This means that your net rental income should be around 5%- 8% of your property value. During this period of time, there should be appreciation on your property value depending upon the economic climate. Remember you have fully paid up your property at this stage. Which means you would be looking at USD$300,000 x 5% = USD$15,000 per year of passive income from the age of 51.
From the age of 51, save the USD$300 for earn income into a ten year annuity program assuming that you are still employed. Use the money saved from Properties rental to buy one more property at the same debt gearing of 50% and finish repayment in 10 years. By the time you reach 61, you should have four properties on hand which can easily give you USD$20k- USD$25k income per year excluding your annuity plan. This should be enough for you to retire with a decent lifestyle. With your annuity in place, your monthly income would be around USD$1,200 - USD$1,500.
Remember to purchase a term life insurance if you have dependants so that you create an immediate asset in case some unfortunate incident happen to you. A healthcare insurance will be a must to protect against major illnesses that can potentially cripple you financially. All other types of insurance are not necessary unless you have surplus budget.
Benefit of this plan is that you can leave this portfolio to your Children and help them kick start their life once you leave this world.
Use a debt gearing of not more than 50% for your rental property value with a 10 year repayment period. You should have a net return of around 3% per year after paying for taxes, maintainence, etc. Put this money into T Bills or fixed deposit. When you buy your first property, your age should be around 31 years old.
After 10 more years, your age should be around 41. You should have enough to buy two more rental properties with the same debt gearing. Repeat for another 10 years the same process. You will be having three rental properties for rental income at this stage.
When you reach the age of 51, you should have total of three rental properties for rental. All your properties should be fully paid up by now. This means that your net rental income should be around 5%- 8% of your property value. During this period of time, there should be appreciation on your property value depending upon the economic climate. Remember you have fully paid up your property at this stage. Which means you would be looking at USD$300,000 x 5% = USD$15,000 per year of passive income from the age of 51.
From the age of 51, save the USD$300 for earn income into a ten year annuity program assuming that you are still employed. Use the money saved from Properties rental to buy one more property at the same debt gearing of 50% and finish repayment in 10 years. By the time you reach 61, you should have four properties on hand which can easily give you USD$20k- USD$25k income per year excluding your annuity plan. This should be enough for you to retire with a decent lifestyle. With your annuity in place, your monthly income would be around USD$1,200 - USD$1,500.
Remember to purchase a term life insurance if you have dependants so that you create an immediate asset in case some unfortunate incident happen to you. A healthcare insurance will be a must to protect against major illnesses that can potentially cripple you financially. All other types of insurance are not necessary unless you have surplus budget.
Benefit of this plan is that you can leave this portfolio to your Children and help them kick start their life once you leave this world.
elviswong
Senior Member
- Nov 8, 2011
- 983
- 276
youmakeme
Power Member
- Dec 3, 2013
- 603
- 331
Business can be risky and honestly, there is no need to put in a lot of money to create a highly valued business. Entrepreunuer are people who create value using the least amount of capital possible. Furthermore, business does not have guaranteed with return or return with a high degree of certainties. For retirement, always place safety as a top priorities over return. And try to invest into something that you can control personally and not leave it to the hands of a management of a listed company or mutual fund managers.
I'm too young to think of retirement but its good to think of future so you can have a good life someday
excaflowne
Regular Member
- Nov 29, 2009
- 238
- 74
buy some Gold at consistent basis i.e monthly.
It'll be useful as an inflation hedge..
i'd say, if only I had 15 Kg of gold today, I'd be retiring,
spending only 20 grams of it monthly until i'm 90, I'm 20s now.
and still many left.
Yes, it's that cheap, living cost in my country.
It'll be useful as an inflation hedge..
i'd say, if only I had 15 Kg of gold today, I'd be retiring,
spending only 20 grams of it monthly until i'm 90, I'm 20s now.
and still many left.
Yes, it's that cheap, living cost in my country.
youmakeme
Power Member
- Dec 3, 2013
- 603
- 331
wriper
Supreme Member
- Jul 31, 2011
- 1,206
- 320
For long term is totally BS to use your savings account
Saving accounts are for medium terms and for people who will be able to take their money if they need.
You should read something about investing there are plenty of good books out there.
Or you can pay someone experieneced to help you with that.
But really for long term you can have easily 7-10% maybe more beacuse long term is usually with lower risk and higher % beacuse you give someone money for 30-40 years
Saving accounts are for medium terms and for people who will be able to take their money if they need.
You should read something about investing there are plenty of good books out there.
Or you can pay someone experieneced to help you with that.
But really for long term you can have easily 7-10% maybe more beacuse long term is usually with lower risk and higher % beacuse you give someone money for 30-40 years