Ok, I know this is NOT a pleasant topic for most of you. So, I'm going to share my secret.

Take $100, $250 or even $500 off the top of each commission check. Put it into a retirement account.

Bingo, 12 closings and you'd have a minimum of $1200 to $6000. Easy? Yes. Just do it.

When I first started in real estate and commissions were mostly under $1000 (yup!), I'd take $100 off the top and put it into an IRA/IRA-SEP. Did that for so many years that I lost count. When commissions increased to a bigger number, I raised the amount off the top.

Now, this is really easy...and you will NOT miss the money. It's painless. But you havta do it.

And, it's fun to watch your money compound and grow. So, when you're in Ipod controlled rocking chair you'll have money for music downloads!

As that old ad used to say: Just Do It!

 

8 Comments on Are You Saving for Your Retirement?

Eileen,

Good goal for 2007!  Quite a few agents never retire and I've seen some that REALLY need to!  Don't want to be in that boat myself!  I will take your advice and set up a SEP!!!

12/13/2006 10:45 AM by Chris Tesch College Station, Texas Real Estate (RE/MAX Bryan College Station)

Chris,

You must have your SEP set up and in place by December 31, 2006. You don't have to contribute to it. But, you must have it set up.

If you don't have a financial advisor or good accountant...GET ONE!

There are new retirement products out there that were not available in 1980. Some will be better than others. Just do it!

12/13/2006 10:56 AM by Eileen Landau, ABR, CRS, e-PRO (Realty Executives, Pro/Team)

Eileen - it is probably wise for everyone to take some money from each "paycheck" (10 - 15%) and put it away in some type of savings.

What is really great for us as independant contractors if we have a SEP, IRA, or SEP-IRA, is that the contributions are before taxes, so if we put away $100 it might be like putting away the after tax amount of $125.

Smart lady.

12/13/2006 12:37 PM by Glenn Ginsburg - Naples Florida Real Estate (A Delta Realty of Naples Florida)

Amen!  I advise agents to put aside the first 10% of every commission check into that retirement account since we don't have 401(k) from 'the man'!  Then also don't forget to set aside the next 20% or so into a tax account...

12/13/2006 12:50 PM by Leigh Brown Charlotte NC Broker/Owner (RE/MAX Signature Properties)

Simple yet will reap a fabulous long-term pay-off.

12/13/2006 12:57 PM by Jason Sardi, Pennsylvania Mortgage Broker (First Choice Equity Group Inc.)

'The Lovely Eileen'

Yup. Saving it and making all at the same time. :)

Must be ready for the day when someone needs to change our diapers.

We're gonna make Brittany do that. LOL...

TLW "The Lovely Wife"...She's Fine. Doing Great At Home...ROAR!

12/13/2006 01:02 PM by "The Lovely Wife"...Broker Bryant's Wife... (Co-Owner Tutas Towne Realty, Inc.)

I'd like to suggest that instead of using a percentage of commission which will change with each closing that using a fixed amount is just so much easier. In fact, most people can put $100 away without any problems.

But, once that figure is either $85 or $2000, then it becomes too hard. This is simple and it works.

And, don't forget about those little old savings bonds (hmmmmmmmmm, another blog). I put my daughter thru college on those and when she graduated I didn't owe a penny!!!

12/13/2006 02:17 PM by Eileen Landau, ABR, CRS, e-PRO (Realty Executives, Pro/Team)

Ok Ok.  Geeze you guys are hard taskmasters on AR lolol.  In this case, I hate that you are right : 0) I'll start in 2007

12/13/2006 05:39 PM by Carole Cohen Realtor®, ePRO (Howard Hanna Cleveland City Office)

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Real Estate Agent: Eileen Landau, ABR, CRS, e-PRO (Realty Executives, Pro/Team)
Eileen Landau, ABR, CRS, e-PRO
Naperville, IL
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Realty Executives, Pro/Team

Office Phone: (630) 515-9500
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An assortment of odds and ends that may or may not pertain to the greatest city in the Midwest: Naperville. Also some commentary on the Naperville real estate market.

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