How to Retire at 50 – It Is a Lot More Doable Than You Think
What should you make an investment in real estate vs. mutual funds? Now, on the face of it, this seems like comparing oranges to apples. However, you should carefully consider how you invest and how you apportion your financial resources in the best possible way. I may, as a long-term real estate investor and realtor myself, be somewhat partial to this form of investing. However, I have some very sound reasons for rating real estate as the best type of long-term investment, as I explain in this video.
When I speak about investment in real estate vs. mutual funds, with respect to real estate, I mean buying brand-new single-family homes that will fetch a good rental income. I mean homes in good neighborhoods in the larger metropolitan areas, preferably in some of the Sun Belt states. A lot of young professionals and their families are gravitating towards these regions and are looking for homes here. They want homes that have space and amenities that promise a good quality of life.
During COVID, a lot of people discovered how workable the work-from-home option is. Now in the post-pandemic world, many professionals are choosing to continue working from home. They are looking for homes where they can spread out a bit. Preferably an extra bedroom to turn into a home office, a yard for the kids, and so on. This, therefore, is the kind of real estate investment I recommend.
I also recommend using the 30-year fixed-rate loan to buy these single-family homes. This, in my view, is the biggest wealth creator in the United States. A financial gift that people in other countries would like to have but don't. This is the loan whose repayment amount remains the same over the years. Its value keeps getting eroded with inflation and price rises. All this while everything else becomes more expensive. This is why I say it is an unbeatable gift!
And this gift is what makes the conundrum about investment in real estate vs. mutual funds a no-brainer.
When I say this, someone of the eminence of Warren Buffet agrees with me. I have been shouting about this from the rooftops for years. I also spoke about it in my recent TEDx talk. In truth, I could have easily retired years ago. I don't need to work. The reason that I do this is because I have a passion for helping people create wealth. I want to do my best to send out the message of how life-altering the 30-year fixed-rate loan can be.
Still, wondering about investment in real estate vs. mutual funds? While mutual funds are an excellent option for people looking to grow their money, it is a good idea to consider adding real estate investing to one's portfolio as well. Mutual funds can give great results, but they are, after all subject to the vagaries of the stock market. On the other hand, a real estate investment gives you great returns over the long term and a passive income right from the get-go.
Once you’ve bought homes and placed them on rent with the help of a good property manager, there is really nothing much for you to do. Our Remote Control Retirement Riches formula is specially created for this. To know more, reach out to us at icgre.com or follow me on YouTube and Instagram.