The wealthy have options for a successful retirement and wealth creation. The adage "it takes money to make money" will always stand the test of time. Whether wealth is gained through inheritance, created through real estate or navigated by buying and selling stocks at the right times, money is leveraged to create more money.
Up until the pandemic, real estate investors could own rental properties and receive income with relatively low risk. The income could be considered mostly passive if investors owned multiple properties and paid 8-10% to good property managers.
Post pandemic, some investors are seeing their once real estate investor dreams turn into nightmares.
Economic realities, like the ones faced by these metro Atlanta real estate investors, can upend retirement goals in just three short years. People interviewed by this television network may find themselves in worse shape than before starting their real estate journeys.
Then, there is the debate about day-trading for short term gains versus long-term investing . I met my first day-trader in 2001 at a Starbucks. The guy told me he was profiting about $2,500 per day by trading for about two hours per day.
Day-trading and long-term investing have different characteristics. Day-trading is done for quick profits. Long-term stock market investors ride the market highs and lows over longer periods of time.
From the above article, here is the short, 8-hour, day-trading time horizon:
From the above article, here is the longer, 4-year, traditional investing time horizon:
The goals of the above, both, short-term and long-term options are to generate enough retirement income and/or to increase overall wealth.
This new and different economy may open people's minds to other retirement planning vehicles.
What if retirement planning had a five-year start and stop defined date?
What if a great annual salary, a real estate sale, an executive bonus, or a small inheritance provided the seed money to start and finalize a retirement plan over a five-period and the structured retirement had the following components:
Yes, it takes money to make money. For the right person, a premium financing retirement solution might be the best solution.
Come back for parts 2 and 3 in a couple of days. You can also listen to the podcast versions of these blog posts on iHeart Radio Podcasts.
Clarence Nappier is a multi-state insurance broker, works with the top-rated carriers and believes in finding the right solutions for clients.
All the best,
Clarence Nappier
Insurance Broker
CA Ins Lic. 0D15213
Financial Advisor
415-737-5300