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Are you worried about massive inflation, if social security is going to be enough for you to retire, if your retirement savings will go to the last you during your later years, well you're not alone. The vast majority of retirement are very concerned with what is in the economy going on there, and their ability to retire. Some of the biggest financial problems facing us in today's economy. With the amount of funny money have the Government and the banks pushed in the economy. with the national debt is close to hitting 100% of the gross domestic Product (GDP); with the massive real estate bubble in some of the most volatile States such as California, Arizona, Florida and Nevada still deflation; with the inability of the social security and Medicare are funded, we have some major problems that we as the public at large need to protect yourself against. Protecting yourself is not saving your money and hide it in your savings account. Why you ask? We already have massive inflation, just look at the gas pump now more than $ 4 per gallon and increase. Skyrocketing raw materials that we use to live on daily from already in price right under our nose. This means that our purchasing power is rapidly declining and the middle class in the new arms push. If you have a screen saver that is what has been drilled into our heads by society for years, you loss of wealth, creating a screen saver is no longer an option for smart. If you save this new economic times, you will slowly become poorer. For example, if you save $ 5000 per year, but your monthly cost of $ 3,000 per month are up to $ 4,000 per month due to inflation, together with your income increase was not accordingly, you just poorer even with your savings. By $ 12,000 per year your spending and your savings went through $ 5,000 per year. Incomes are not currently associated with the economy. It costs more for companies to stay in business, jobs are leaving the country because of cheaper labor in the developing countries, the cost of living increase significantly and our income will stay the same. This is already a recipe for disaster. Okay, enough doom and gloom. There is a way out. There is a way to protect yourself from the massive inflation and these tough economic times.
The way to do this is to the structure of your retirement investments in a way that they are passive income monthly without produce for you to work for them and assets that appreciate when there is massive inflation. I am a CPA, real estate investor and financial advisor and I can tell you that real estate one of the best investments you are in for this type of economy can invest. Real estate is one of the only investments which are the advantages in this type of economy. Here are some of the reasons:
(1) real estate has the possibility of the return on your money that beat out the inflation to produce. You can 8%-25% + return on your money, safe investing in real estate, if it is done correctly. You need the right do due diligence on the property you are acquiring.
(2) real estate values tend to rise during inflationary periods. If we have massive inflation, not only do real estate properties usually rise, but rents increase also increase your passive cash flow and financial stability if your monthly costs rise. This protects you significantly in an inflationary economy.
(3) real estate investment tax free income. Some of the tax benefits of depreciation due to many of your cash flow passive rental virtually tax free. Taxes are your biggest expense so it is necessary to pay the taxes you down. You can also invest in real estate in your own retirement account (IRA, 401k, etc) and 100% of the gains tax free. Most people don't know that you can do this, although you've gotten to do this for 30 years. It's called a self-directed retirement account.
(4) cash flow from rental real estate can create a passive income stream so you should never use up your main balances and allows you to retire from the cash flow. You will never need to worry about your principal balance abort if the cash flow of your real estate investments exceed your monthly costs. Once this happens you are truly financially free. You can only achieve this when you are in assets like real estate that allow you to invest a high enough return on investment to beat out inflation.
But how do you invest in real estate safe? Isn't it risky? Most people don't know how to invest in real estate correctly. There are tons of real estate courses, books, online resources and more that will help you to learn how to do this correctly. There are also companies out there that can help you invest, who has the experience, have a team in place and have access to investment for the risk already softened.
The key to your future stability is your ability to learn new investment opportunities, how to mitigate the risks of those investments and control those investments and especially your ability to increase your financial education. Financial education I mean by educating yourself on how well investing (not Cds, mutual funds or files that you do not have control over), educating yourself on lowering taxes, educate yourself about your money budgeting and put a set of financial plan with attainable goals. Most Americans spend 40 + hours a week working, but less than one hour per month review of their financial position, the plan and objectives. That sounds not backwards? It's because financial education is not taught in schools, so you have to take it on yourself to educate yourself. People are taught how to make money in their fields, but not establishing a financial plan and how to protect their money. So get educated, take action, investing in the right investment categories to protect yourself and your future. Your future financial stability depends on it.
Owens Consulting Group founder Mathew Owens is a California licensed CPA and a full time real estate investor. Mathew has 8 years experience in working as a CPA, Commissioner, business advisor, and he has more than 100 transactions completed in the past three years, which is about $ 10 million in real estate, most of which is sold to investors cash flow. Read more of his blogs on http://www.ocgproperties.com/wblog/
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