I love when people are asking how to invest for retirement in their 20's. I
wish I would have been thinking that in my 20's but I wasn't. Had I been thinking
that and asking that question, I could have set myself up so much better. So, in
this video, I'm going to walk you through 5 ways you can start investing in your
20's for retirement and prepare yourself to have a beautiful retirement making sure you
have enough money to live any lifestyle you'd like to live when you retire. Let's get started.
The very first thing to do is take advantage of free money. Take advantage of free money if
you're at a job where your employer matches your investment in your retirement, make sure you take
advantage of that, it's free. If they match up to a certain number, always invest to that number.
I'm not a big 401k guy because I put all my money in real estate but if I had a job where they were
matching my money and essentially giving me free money, I'd be maxing that out over and over and
over again and I think you should too. Every single year, max that number out to make sure you're
taking advantage of the free money that exists. You want to invest for retirement in your 20's, my
goodness, please take advantage of that free money because that's a great way to make sure they're
funding your retirement. They're going to fund your retirement, it's going to grow with interest and
appreciation over time. You're really going to see that money grow and grow and grow. So, for you, I'd
be making sure I was taking advantage of that free money. The 2nd thing I would do is start an SD
IRA, that's a self-directed IRA. A self-directed IRA acts just like an IRA but you can invest from it.
It has a great return on investment while it's just sitting there, but you can invest from your
SDIRA to real estate and any income you make on real estate goes right back into your IRA
but it's untaxed, So, you can save money on taxes by investing from your SDIRA and that money
comes back to you and you don't have to pay any of those taxes. So, every single person in their 20's
should start an SDIA and start investing in real estate from their IRA. Now, if you don't want to go
and learn the real estate business, then you can actually take that SDIRA money and invest
in somebody else's real estate deal. If you have money in an IRA, there's a lot of people like me
who we go find deals and fund deals and partner with people that have money in IRA's and they
invest into our real estate deals, our systems and my teams do all the work and they just get money
put right back into the retirement every single quarter and it makes money and they don't have
to do any of the work. It's a really good way to leverage your IRA, not pay tax on the income
and get really good returns because investors in our deals often will experience 14 to sometimes
north of 35% annual return on their money in our deals. Well, if you're investing in that, making an
annual 15 to 35 percent, that's what you're not paying tax on so they'll put that back into your
SDIRA. It's a powerful thing to set up in your 20's and use it over and over again for the
whole portion of your life. Keep investing in real estate from your SDIRA. The 3rd way to invest for
retirement in your 20's is to stay debt-free. Make sure you stay out of consumer debt. Let me make
sure i make a distinction. There's 2 different kinds of debt and this is what a lot of financial
people aren't talking about. There's consumer debt, this is couches and clothes and food and things I
put on my credit card that is consumer debt. I'm just consuming product and service. This is just
consumer debt, that debt is awful and you need to stay away from it. Then there's investment debt,
low interest loans from banks that can buy you real estate that are going to make you more money
over time than ever going to borrow from the bank. So, it's going to really make you money leveraging
debt. So, I would say stay out of consumer debt but take on as much real estate debt as the bank will
give you because especially in a time where the dollar is going to start decreasing because of
the government printing money, when you lock into a real estate deal, debt is the best hedge against
inflation because when inflating interest rates starts to rise and you begin to see the dollar
decrease in inflating prices, you're locking in a loan on a more valuable dollar so you're loaning
against a valuable dollar and investing in something that doesn't decrease in value
might crash but it doesn't decrease over time, it increases. And so, by leveraging debt, you can really
see your income grow so stay out of consumer debt, leverage investment debt. And as a side note to
debt, if you do have student loans, make sure you get those things paid off as soon as possible
but believe me, it doesn't have to happen from your own pocket. And I had quite a bit of debt. I
graduated with quite a bit of school debt because school isn't cheap, especially private education.
When I graduated, I have a really big chunk of debt that I had to get paid off about 30 or $40,000
and I know that's not a lot for today's debt but for me at the time, that was a big, big, big number
and I'm thinking how am I going to pay this. My monthly payment was $500 a month so what I did was
my wife and I went and found a little 3-unit apartment building and we bought it and rented
that out and that made about $500 a month. We let that piece of real estate pay off our school debt.
So, I'm not actually telling you to take your own cash and wipe out your debt but I am saying
go invest in real estate, let the real estate pay off your debt. That's a great way to do it because
when that's paid off, guess what that real estate's going to continue to do? Make you money month after
month after month. Paying off debt with your own money sometimes isn't the best use of your money.
You pay off that money when that could be used to a down payment and getting a loan on a property
this can pay you month after month after month. Before we go on to the last 2, make sure you
watch our video on getting out of debt quickly. Make sure you watch that video so if you are in
debt, you can crush that debt so you can continue to go full force toward investing in real estate
and investing for your retirement. The 4th thing you can do to invest for retirement is to create
an ER fund or an emergency fund. The reason I like an ER fund is because it gives me the ability to
put a little money in a bank so that if I do have an emergency, I can get it paid off quickly and I
don't have to dip into savings or go into debt for it. I like 3 to 6 months of expenses in an
ER fund. That will really protect me if I lose my job or something happens or I have a piece of real
estate where a tenant moved out and I can't cover the payment, it really helps hedge against those
experiences. So, 3 to 6 months of expenses is a really good place to start in creating an
ER fund. In fact, I actually like the ER fund above a savings account and here's what I mean. I would
rather have an ER fund just to cover anything that needs to come up and instead of having a
savings account, I'd rather put the rest into real estate. Put the rest into something that pays me
month after month after month. So, after you have an ER fund, why do you need a savings account? You just
don't need a pile of money sitting around, let's invest that, have it work for us and be paying
us month after month after month. That's the way to really manage money. Tip 5, invest the rest.
Pay off your expenses and invest everything else you make. I'm telling you, keep your expenses low,
drive a smaller car, live in a smaller place, keep your expenses low and invest as much as you can.
This is the decade to deprive yourself of a few luxuries so you'll never have to deprive yourself
again. I'm telling you. Follow this method and you will be amazed at what happens in your finances.
So, after you pay for all those expenses, invest everything else. I would encourage you to invest
in real estate. It's the best and safest place to invest your money with the highest returns
that's proven itself for decades to be the best investments. The way to really create a
great future in retirement especially when you're investing in your 20's is to see money as a tool
to be utilized to create more, not just something to be spent. But as I've mentioned, one of the
greatest things you can invest in is real estate and more specifically multi-family real estate.
And so, what I created for you today is I have a free multi-family master class. It's a 60-minute
training walking you through how to bust into the multi-family market and start creating
those assets and creating cash producing assets that pay you month after month
after month. So, go below in the description, click that training and I'll see you there.