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How to Retire in 3 Years with Passive Income

“If you don’t find a way to make money while you sleep, you will work until you die.”

— Warren Buffett

Are you looking to get out of your job?

You absolutely can!

I did it in about three years through investment income.

Today, I want to share my secrets with you.

A lot of people talk about financial freedom.

But if you think about it, what does that really mean?

It doesn’t mean having gobs of money.

In my opinion, it means having control over your time.

When you have more free time, you’ll find that your overall quality of life improves.

According to this 2022 study of free time in working adults, having more free time can help you:

·       Regenerate physical and mental strength

·       Make time for entertainment

·       Develop new interests and talents1

I’m going to give you my three secrets so you can forge your path to financial freedom in the next three years.

Let’s go!

1. Identify Your Freedom Number

There are three different levels of financial freedom.

The first level is a freedom number.

This number is how you get out of the rat race.

If you make a decent salary, don’t be too intimidated!

When I was making $200,000 a year in my old medical sales job, I didn’t need to match that exact number.

When I started my own journey, I looked at my expenses and found out the amount I needed to live.

At the time, I needed about $6,000 a month to live, which is $70,000 per year.

That was a lot less than I was making at my job at the time.

If I could cover only $6,000 a month with investment income, I could be financially free.

I would never have to go to work again.

After I covered that initial amount, I was ready for the second level.

The second level of financial freedom is getting back to what my original wages were.

Since I was making $200,000, I needed to cover that number.

The third and final level is what I like to call the jet-setting lifestyle.

You’re living the life of your dreams.

You’re doing all the things you want to do.

I know a lot of people who live that way.

It’s also important to take a step back and figure out what you want to do with your financial freedom.

Financial freedom is not about how much money you have in the bank.

What matters is what you want to build.

Money is like Legos.

You build what you want to build.

If you want to build a dragon, build a dragon.

If you want to build a castle with a moat, do that.

That’s what we do at Bronson Equity.

We help people build what they want and provide them with the resources to do so.

But before you build anything, you need to accumulate the Lego blocks.

You need to invest and start earning money.

2. Commit to Investing All You Can

It’s been said that the poor and middle class live off what they have and invest what’s left over.

The wealthy will invest first and live on what is left over.

I think those are actually switched.

If you commit to investing first with a lot of your funds, you can have a life that actually pays you back.

You can build long-term residual wealth.

I want to give you an example of how this works.

If you had 15% annualized returns per year, your investment would double every 5 to 7 years.

That’s pretty amazing!

We’ve done this through multifamily apartments and other types of deals.

A 15% annual return is a common projection, but it could be a little higher or lower.

There’s a lot of benefits to investing this way.

You get tax benefits, higher returns, and lower volatility than the stock market.

You can hedge inflation, which we’re seeing substantially right now.

Diversifying your investments is also a good strategy.

We’re doing stuff in the business world as well.

I’ve also calculated how this can all work over 5 years of investing.

If you make $200,000 per year and invest $70,000, you’re living off of $130,000

You’re basically living off of about half your income after taxes.

Then, you’re getting 15% in annualized returns.

And, like I said before, the investment will double every five to seven years.

In five years, if you’ve invested $70,000 every single year at a 15% return, you’ve made $661,000.

That’s awesome!

Your $350,000 has become $661,000.

That’s generating about $8,200 a month.

It’s not always as common to find deals where you’re getting a 15% return.

But this example gives you an idea of what you can accomplish.

It’s important to have the right mindset about money.

The Snowball, a great biography about Warren Buffett, has a great anecdote about this.

When Buffett’s wife wanted to buy a $500 couch, he didn’t want to spend that much money.

You might be thinking: He’s a billionaire!

Why would he not want to spend that much money on a couch when he can afford it?

The couch may have been $500, but Buffett thinks in investments.

In the next 30-plus years, if you compounded what they would spend on that couch, he would miss out on a lot of investing capital.

It’s all about having that wealth mindset.

3. Identify Great Investments

Investing is not just having the idea.

You can have great ideas, but those ideas don’t mean much until you act on them.

So, how do you find great deals?

The number one place I find deals is at networking events.

National conferences and local networking events are both great options.

According to this review of professional networking, you gain access to multiple benefits, including:

·       Risk sharing

·       Access to new markets and technologies

·       Speeding products to market

·       Pooling complementary skills

·       Safeguarding property rights

·       Obtaining access to external knowledge2

I talk with a lot of people at networking events.

If you’re a passive investor, you should try to find other passive investors.

When you do, you’ll be looped into the best deals.

In the financial world, passive investors are the only people that don’t have anything to sell you.

They’re just out there trying to do what you’re doing.

I’d never heard about multifamily syndication before networking at these events.

Why is that?

Well, it’s because Wall Street doesn’t want you to know.

Wall Street spends billions advertising traditional investments like stocks.

But in the 1930s, people would never invest in stocks.

That’s super risky!

People owned real assets.

You can also find great deals and tips on our YouTube channel and podcast.

We have the Mailbox Money Show where we talk about different asset classes.

I used to be an RIA, or a registered investment advisor.

I was registered with the SEC to sell stocks, bonds, and other similar assets.

During my time in that position, I realized that there was a misalignment of interest.

This discrepancy was often between what investors needed and getting access to main street deals.

That’s the reason people don’t hear about them.

The most important thing you can do is act.

If you don’t act, nothing in your life will change.

Find your freedom number, commit to invest all you can, and find great deals.

I went to real estate meetups for six years.

It didn’t really do anything because I didn’t act properly.

I had one rental, but I didn’t do anything with it.

And then I made the decision to leave my job in three years.

When I did that, things started changing.

Tony Robbins says that your destiny is shaped in your moments of decision.

That doesn’t just include your financial freedom!

Those moments of decision allow you to live the life that you want to live.

That’s my hope for you.

I want you to find a way to become financially free.

That financial freedom will open up more options than you ever thought possible.

Now I want to hear from you!

What are you most excited about when you achieve financial freedom?

Let us know in the comments.

Before you leave, make sure to check out our special report about inflation investing. It shares the best choices to invest during an inflationary environment.

If you are interested in investing with us, we are happy to answer any questions that you may have. Join our investment club today and we will be in touch.

Check out my bestselling book on Amazon!

Disclaimer: I am not your investment advisor. This is for educational purposes only. I am not giving specific advice on what you can do. I am simply giving my opinions.

Works Cited

1. Urszula Kempińska, Katarzyna Balcer and M. Rudenko. “ONE STEP BEFORE RETIREMENT – FREE TIME OF WORKING ADULTS.” InterConf (2022). https://doi.org/10.51582/interconf.19-20.02.2022.015.

2. Luke Pittaway, M. Robertson, Kamal Munir, D. Denyer and Andy Neely. “Networking and Innovation: A Systematic Review of the Evidence.” Economics of Networks (2004). https://doi.org/10.1111/J.1460-8545.2004.00101.X

Bronson Hill

Bronson used to work as a consultant for a medical device company but switched to investing in apartment buildings to make his money work for him. He started with a single rental property that made good money and, after some advice from a family member, moved into bigger real estate projects. Now, he's all about helping others get into this kind of investment to earn money without having to work all the time. When he's not dealing with investments, Bronson loves to travel, write songs, stay active, and help fight modern slavery through his work with Dressember. He believes in working smarter, not harder, and wants to share how that's possible with everyone.

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