“Anybody who plays the stock market not as an insider is like a man buying cows in the moonlight.” —Daniel Drew
Did you know that only 30% of people can maintain the same standard of living in retirement?
We work all that time looking forward to all the amazing benefits of retirement, and for many of us, we have to give up many of the things we were looking forward to.
Well, it doesn’t have to be that way.
I am going to show you a way that you can supercharge your retirement savings by 17 times.
You can be one of the people that maintain or betters their financial situation in retirement.
Intriguing, right? Then let’s get started.
What Most People Do
When you think of investing for your retirement, you probably think of the stock market, right?
That’s the thing that people do. They get jobs, they get a 401k, and then they are all set.
But there is more to it than that, and here is why.
Looking at the stock market since 1957, the average rate of return is 8%.
With compound interest over a long period, you can gain a decent amount of money in your investments if it stays at that 8% average.
Because of this, you may think that 8% is a great number.
But there lies the problem. That 8% average is not what you are really getting.
Let me explain.
Most retirement investing consists of mutual funds. But if you look closer at these “traditional” investments you will see that they have fees associated with them.
These fees are the ones listed right in your investment portfolio. An average of 1.2% is taken from your earnings.
If only that were all the money that’s being taken out…
There are other fees that these investment firms and wall street companies don’t have to tell you about.
Tony Robbins in his book, Money: Master the Game, talks about the additional 2% of fees they don’t have to disclose to you.
And he is right!
There are marketing fees, transfer fees, and more fees that they are not legally required to tell you about.
So adding those fees together and now you have a total of 3.2% taken off the top of your gains.
That’s a lot!
But if you have a money person, which many wealthy people do, then you are paying even more. Most of the time they will take another 2%. Now a total of 5.2% in fees!
Now you are left with only 2.8% returns from the initial 8%.
That is terrible!
For example, if invested in such a plan, a 100K investment only becomes $194,653 in 25 years.
That’s not a feasible long-term investment plan. That’s more like a bad savings account, but with a lot more risk involved.
That’s not even considering that the 2.8% increase may not even match any possible inflation that may happen over that same 25 years.
Traditional investments – Why?
Looking at these numbers it makes one wonder, why is this considered the traditional investment plan?
The answer is a simple one.
Wall Street firms have paid billions to get you to buy into this, and they are making a lot of money from all these fees.
I’d say it’s one of the most successful ad campaigns ever.
Almost every major corporation offers a retirement plan based on this model, and it doesn’t even help the majority of people reach their retirement goals.
But luckily for you, there is another way. You can still be within the 30% of people that maintain their standard of living — or hopefully, even better it.
The Other Investment – Multi-family Syndication
Whereas the average returns for the stock market are at 8% before fees, the common projection for multi-family syndication is 15% in annualized returns.
Like the stock market, this number can go higher or lower.
And like any investment, you have to do your due diligence to find the right deal.
But even on the low end, these deals end up meeting or exceeding the stock market.
And that rate of return is net income, meaning that the percentage already accounts for any fees from the sponsor of the deal.
So unlike the 8% from the stock market, you are truly getting that full 15%.
On top of that, this asset class is very stable.
In 2009, at the height of the Great Recession, the default rate of multifamily homes was 0.4%. Compare that to the 4% of single-family homes at the same time.
Even during a downtime for real estate, there were only 1 out of 250 units that were in default or foreclosure. That’s amazing!
So with less risk and more income, let’s compare that same 100k investment from before.
At 15% returns, that $100K becomes $3,291,895. That is a 16.9 times greater return than that same investment placed in the stock market.
And that’s all with no further investments!
So if you are looking for a better way to invest for retirement, then these kinds of returns speak for themselves.
Like any investment, however, you do need to do your due diligence and research on any particular deal or investment.
There is no silver bullet in investing, but multi-family syndication offers some amazing advantages such as higher returns, lower fees, and many others.
There are even ways that you can open retirement accounts that allow you to invest in physical real estate. Or you can transfer the money you already accumulated over years of investing into a deal that is right for you.
If you are interested in finding out more about the kinds of deals that are right for you, then I have plenty of information to help you on your investing journey.
Check out our special report about investing. It compares the stock market to real estate, and it also includes how the pandemic affects your investment future.
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.