Real Estate, Rental Income and Your Estate Plan

I was in the process of recording a video this week but I'm loosing my voice and the video was just not turning out so great.

So ....Continuing on from "Why Houses Make Great Investments"...that I wrote to you about a couple of weeks ago.

What a GREAT environment we're in for buying real estate....yep that's right, I said "Great". I'm sure you've read or heard by now how fantastic interest rates are, hopefully you read my email from last week. =) And...you know that homes are on sale and investment earnings are down.

So, how does this affect your plan?

People who are self-employed who will not be getting a pension from their employer, myself included, need do some extra planning to put money aside for our retirement. And now, especially in today's income and investment environment, it's difficult to have enough money to save, right?!

Alright so even if you aren't self-employed and you're expecting a pension, how secure is it? Probably not something you are going to rely on solely, right?

So what are your alternatives. Although there are many, real estate happens to be an excellent choice. Think about your own Estate / Retirement plan, you do have one right? Use this simple form below to start thinking about how rental income can help your bottom line.

Estate Building Plan

Situation:

• You want to be able to retire with a secure annual income of:
• $____________ or $_________/month.

Problem:

• Social Security will not produce all that you need.
• Your Pension will only produce annual income of $___________
• or you are Self-Employed and do not have a pension plan.
• You do not expect to get a BIG inheritance. =(

Proposed Solution:

• Acquire ____ rental houses.
• Live long enough to have your tenants pay off your house!! =) Or at least paid off way down!
• Your real estate portfolio will produce the extra passive income that you desire. And...you get to collect the income along the way, even before you are retired.

** Here's an idea: Have each house represent a specific purpose in your plan. One house pays for your insurance. One house pays your mortgage on your primary residence. One house pays for your vacations etc.

On the chart below, I've listed 3 types of income, the tax benefits and how much can end up in your pocket. I used a self employed person to keep it simple. Keep in mind these are just general numbers, everyone has their own unique situation.

Now....think of it this way, just imagine how you will feel if you have all 3 types of income working for you? Happy, Secure and Financially Free?

2009 is going to be a golden year for purchasing real estate and ultimately will set you up for an incredible retirement, if you plan ahead and develop the right exit strategy. Do not wait, the market is changing rapidly and you have to be prepared in advance.

Next week, I'll show you how real estate can be a fantastic hedge against coming inflation.

All the best wishes for you and your family in 2009.