In this blog i will address the pros and cons of investing in Real Estate and stocks which one comes first and why you should own both.
Here is an example form chapter 1 of my new book Along For The Ride:
This book will not, in other words, be anything resembling a “get rich quick” book. If that’s what you’re after, stop reading now. Put this book down and return to hunting for the non-existent “silver bullet” to riches. But if that’s not you, keep reading. Stay with me and you’ll be delighted by what you find. I’m going to spend this book teaching you a simple process that leads, over decades, to wealth.
Decades. Not tomorrow. Not the week after. Not next week. Not even next year. We’re talking twenty-five to thirty years or more. A period which seems like an eternity today. Yet one that will be over in seemingly the blink of an eye. (Just ask any senior citizen!)
If you can patiently follow my process for that period, you’ll end up financially independent. Curious what the process is? I don’t want to spoil the book. But I can give you a preview now.
My process is to build and maintain a cash-producing wealth machine. You do that by buying and holding quality real estate and equities. These assets appreciate over time, while also providing you with a steady stream of cash - in the form of rent checks and dividend checks. As the cash arrives, you then redeploy it into the purchase of more real estate and equities.
Overall, my process is a simple rinse and repeat. You do some work upfront to create an investment “snowball”, as Warren Buffet would describe it. Then you sit back and let time take care of the rest. The decades do the heavy lifting for you, turning your portfolio into a “muscle-bound” freak. As an added perk, the process I’m describing doesn’t require you to quit your day job. You simply spend a few hours each week monitoring your holdings and looking for the next purchase. Do that and the process is 100% guaranteed to create wealth.
The wealth you create will be lasting too. Meaning you won’t ever have to worry about running out of money in retirement. The money won’t dry up because you won’t ever have to sell your assets. Not unless you want to. You can keep the assets and live off the cash flows they produce.
Cool, huh? It’s not how most people support themselves in retirement. The masses tend to follow the so-called “4% rule”. When doing so, they support themselves by selling approximately 4% of their assets each year. Can you see how they run the risk of ending up with no money? Especially as seniors enjoy ever longer lifespans.
Living longer should be a cause for celebration, not a reason to despair. With the simple process I detail in this book, the despair will never come. Money concerns will never dampen the enthusiasm with which you blow out the candles on your birthday cake.
It’s a simple process. But it’s not easy. The difficulty comes primarily in being patient. Most people struggle to do that. They act as their own worst enemy, derailing any progress toward financial independence.
If you can just be patient, you will become financially independent. I know that for a fact. My own financial independence came in my mid-forties. I know too, of some people who achieved this independence in their mid-30’s.