I've helped hundreds of people better their retirement plans through real estate investing. One day I was working through some thoughts and realized that there is a hierarchy to follow when it comes to what/when to invest any monies. Dave Ramsey has his Baby Steps to helping people get out of debt. Take this as my Investing Steps to creating wealth. And, as always, these are my thoughts and I am not a certified retirement planner.
- Two weeks earnings worth of cash in an easily available savings account.
- Contribute to your employer's retirement savings account such that you "max out" the employer's matching of your savings. Or, if not an employee, maxing out your own IRA, or self-employed 401(k).
- Move personal savings up to 15% of earnings.
- Three to Six months of savings in a higher interest, slightly less liquid savings vechicle. Three months if you have very stable income. Six months if you are in sales or worried about job security.
- If qualified, max out Health Savings Account.
- Purchase an investment property with a minimum of 25% down and six months of operating capital reserves (for the property).
- Rinse, repeat.
My main point here is that real estate investing is an awesome way to go but make sure you have a solid financial foundation before doing so. Feel free to contact me with your thoughts or questions on this.
A record 4.4 million Americans, or 3% of the workforce, voluntarily left their jobs in September, the Bureau of Labor Statistics announced Friday, accelerating the so-called Great Resignation. The total eclipsed the prior record of 4.27 million Americans who quit their jobs in August.
Thinking of retiring ahead of schedule?... Here are some things to think about from Barron's. And there is a great idea regarding health insurance down in the comments. Worth the read if you are considering.