So one of you reached out and asked a really great question. We got a half a
million dollars, we're in our 40's and ultimately, we want to know how should we
put that money into real estate and other investments to have safety and
security for retirement. Listen, whether you've got a lot of money or whether you
got no money, today's video is going to bring you tremendous value because we
got guest, Steven Michael Miller joining you today to break it all down for you.
Hey, friends Steven Michael Miller here. And got another great question. It says
my husband and I have $500,000 to invest. We are both in our 40's. We want to retire
in our 50's. What is a safe investment with a good return? Like 5% or
more with limited risk? Great question and I'm going to take this probably from
a little bit of a different angle. There are a couple of things that really stood
out to me on this question. You talked about safe investments. Good returns and
limited risk, okay? And those are really interesting thought
processes. And the reason why I'm going this angle is because I think it's
really important to understand first of all, we're talking about investing. Every
investment has risk. The idea of limited risk, that is very subjective.
Different people will tell you different things in terms of risk. Oftentimes, when
people think of limited risk, they think of annuities. You know an annuity has a
limited risk because you know you have a guaranteed return or a quote-unquote
guaranteed return. Oftentimes, based on a very long track record. You know you've
got your whole life insurance policies that oftentimes will pay you a 4 or 5%
return that that are guaranteed returns you know because they
have had such these really long things. But I want to help you
understand that first of all, for most people when they think that they have
when they have $500,000 to invest and they're thinking
of in terms of guaranteed returns. They sometimes don't do the math or they
haven't done the math yet. And although that seems like a lot of
money, the reality is what it translates to in terms of our
lifestyle, in terms of what we're used to or how we're used to living, it doesn't
really translate well. $500,000 in the bank for most
people, because you know having that much money, you may be earning
really well. You may have a very great six-figure income. Maybe you're used to
living on two different incomes that are combined together. So you have a very
certain lifestyle and all of a sudden, if you take that money that you've been
earning, that you've been saving and putting away and you're ready to invest
it, what your mind is saying is, "I want to be able to keep up
my lifestyle." But what the reality of what the math will show is, it's nearly
impossible in terms of those safe type of investments. And I say safe with air
quotes okay? Because those those type of investments aren't really safe. So I mean
think about it for a moment. Our 401ks and IRAs are oftentimes what we would
call safe investments. But I know what happens with people in their 401ks and
IRAs and I know for a fact that is one of the least safe investments you
can have. And what I mean by that is you know the outcome. It is not going to be
enough for retirement. So I don't know why people find safety in that but that
to me is one of the riskiest things that you can put your money in, is something
where you know it's not going to help you achieve and reach your goals and
your dreams. So you know the IRAs, the 401ks, the life insurance, the
annuities as safe as they may sound and has a lot of financial advisors put them
out to be, in my opinion, those are some of the riskiest things. Those are some of
the worst things that you can put your money into because you know that the
return is not going to be enough to fund your dreams, to fund your kids goals and
dreams, to help fund your retirement, the way that you actually want to do so. So,
I'm going to leave those things. Those things on the side and I'm
going to get into what I think most people were really looking for. They're looking
for what type of investments can I do that that have a margin of safety? To
have a decent margin of safety? See, this is what Warren Buffett
talks about all the time. Warren Buffett talks about going in and doing
investments that have this margin of safety. And margins of safety can be
found in a number of different arenas. Margins of safety can be found in equity
that you can find in companies or in real estate. Margins of safety sometimes
are there in systems that are in place. They can be found in systems margins of
safety. But you can find them in other places as well. So I want to talk about
investments that oftentimes have a margin of safety. But I also want to talk
about investments that sometimes come up for us in different circumstances. That
are sometimes those first mover advantage or frontrunners that can be
really important to look at and jump in to or at least jump into learning about
as fast as you possibly can. Someone talked about a couple of those different
things right now. The first thing we talk about is real estate and doing real
estate the right way. You've got $500,000 to invest and $500,000 you if you're the
really safe conservative type, you could go out and buy homes outright with that
right? What I mean by that is you can buy homes with no mortgage attached right?
You can just purchase the home all-cash deal if you are buying in some of the
areas that we're buying in right now. You'll be able to find an average
purchase price of probably a 100 and $50,000 so that would
allow you to get probably three properties right? With a little bit
left over for a buffer room. Again, I'm talking to the conservative person here.
The safe investment here right? $150,000 home, three homes, they're each going to
produce for you if you own them somewhere in the realm of $1,100 a month.
Let's just say okay, $1,100 per month then $1,100 per month over three homes.
That you know only $3,300 per month. That's a
decent return. That's actually a pretty good return on your investment right
there. It's a little bit... Let's see, that's a
little bit under a 10 % return. I'm thinking something like an 8%. I haven't
done all the math of my head right now. That's a really good return right? It's
over the 5% that you were looking for for sure. Very conservative approach.
These homes will produce for you and they'll just do their thing especially
if you're plugged into a system. And you know, I'm not saying you have to use our
teams or our systems, but we have a great system to use that will give you a
really great return. If not, plug in and create your
power team. Find a responsible property manager that will take care of those
properties for you and you'll get a really good return on investment. And by
really good I mean, really okay. You'll get 5 to 8% return
on your investment there. There are other things that you can do though outside of
this obviously. This is just if you're buying homes outright. If you decide
instead to leverage for these properties, then you could buy a whole lot more.
You could spend you know roughly $40,000 per home
out of pocket. $40,000 will help you get roughly twelve
properties. Instead of the original three. Those twelve properties,
they'll produce a little bit... it'll be a little bit different because you don't
own them outright but you'll earn probably $400
a month roughly. You know give or take a little bit. $400 a
month in cash flow per home. 400 x 12, that's $4,800
per month right? So you'll earn about $4,800
per month just on that. But here's the fun part about real estate as
time is... If you're doing it right, time is on your side and you said that you've
got five to ten years. You know you're in your early 40's. You
want to retire in your 50's. So you've got some time on your side. Over time real
estate always does this right? It's a little cyclical right? So it
has some ups and downs when you buy with a system. Where you buy it the right way.
It helps to offset a lot of this fluctuation. So that you can just
capitalize on that steady growth over time and being able to capitalize on
that steady growth, allows you to turn that once $4.800 a
month, over the next five years you could probably turn that into you know, $9,600.
you know something like that.
I have $600 and over the next five years maybe double it again. So
if you're willing to take ten years then you could easily have a residual
income of $13 - $15, 000 somewhere in that range that can
really do some amazing things for your retirement and have your principal that
your initial $500,000 investment growing for you more and more and more. And so
this is one really great way to do this. The
second thing that I kind of mentioned in passing or at the beginning of the video,
was tapping into new technologies. Doing new things. There's something out there
right now that you've maybe heard of. And maybe you have it. But it's been the buzz
in a lot of different technology type of companies. IBM, Google and many others are
talking right now about the blockchain. And what the blockchain is kind of
like the Internet 2.0 to put it in simple terms. It's a more trusted
type of Internet. It's a place where people can go to do different
transactions that at one point and still today, for a lot of us, you know we pay
middlemen. If we want to buy a home, we pay a realtor, we pay a title company, we
pay a mortgage broker to broke on those deals because we have trust in them. But
with this new blockchain technology, it's opening up a way for us to do those same
transactions and rather than paying 6% on a home, we can actually transact that
whole for maybe a dollar or two. It's changing the world of what we're
doing right now and it's still a new technology. This is a technology that
Kris and I are getting very involved in right now. And it's something that it's
worth sharing here right? If you have $500,000 and you wanted to put that
into blockchain technology, the first question you may ask is, is it safe and
and that's because that's one of the first things here that was said right? We
want a safe investment with a good return, with a limited risk. Well, with new
technologies and things there are always risks. But I had a friend years and years
and years ago who invested in plastic. This is when plastic was first
coming out. So this is probably what was the mid 50's or early 60's or something
like that. When plastic was just starting to really
boom. And he invested in plastic and it changed his world. Everyone else around
him probably thought what is this plastic stuff? You know, we like metal and
we like wood. And it was a little bit of a risk. Yeah it has ended
up being one of the greatest risks that he's ever taken and has paid him the
very most money that he's ever made in any other investment. And
is one of the things that I... This is how I'm looking at the Blockchain technology
right now. It's opening up new opportunities. I've seen companies like
like I said before. IBM and Google and Deutsche Bank and so many others
right now that are coming in and adopting these technologies. Where the
majority of the world right now, the average person you and I we're just
barely starting to hear about some of these things, but this is where
things are going. If you were to take that $500,000 and invested in Blockchain
technologies, so I got my phone now and I got my phone because I just wanted to do a
little bit of math right here on the spot. And this is all by the way, I'm not
a financial adviser. I don't give advice. No tax advice or even like that. But I
want to help you understand, what some of the track record is on this already
because although it seems brand new to a lot of people, the Blockchain technology
has been around for a long long time. As a matter of fact, when Bitcoin first came
out which was probably up 15 years ago or so, it's when a lot of this first
started. So now we've got this 15 year track record, maybe nine years where it's
really been utilizing this way. That we we've got data and information and
things to support what it is that we're talking about here. But I want to just
run some really simple numbers and I'll try to dump some of these down just a
little bit. But if you had $500,000 and let's just say that you were to invest
all of that into Blockchain technology. I mean that say $500,000
could potentially earn you know a little you know over
$50,000 per month.
It sounds crazy. But there are specific things that you can do to
do that. As a matter of fact, right now what's supporting the Blockchain are
these servers and you can actually purchase these servers and these servers
you know, they have a price tag. When you purchase these servers, these servers get
in and they they help support what the Blockchain is doing. They help support
these transactions. They verify, they do what's called Terra hashing and that
Terra hashing gets paid right? So this machine goes to work for you. The machine
gets paid to do this work that you then own. You're basically... you own part of the
Blockchain and because of that, they pay you. Well if you were to put $500,000
into the blockchain, it would produce probably a little bit more
than that. But right around that $50,000 per month for you
potentially. And potentially a whole lot more. I mean I'm speaking a little bit in
tongues here. I guess I'm not giving all the information because there is so much
more behind this. But you're asking for good investments and you're asking for
things with limited risk. This is one of those things that a lot of people would
probably call very, very risky. It's one of the things that I see, is honestly
probably a very, very limited risk and it's one of those things where it's like
it may be risky or not to get involved and this to get involved. Kind of like
plastic kind of the Internet. You know when the Internet first came out. Most
people didn't understand it and so they stayed far from it. But the reality
is today, everybody uses the Internet. You're watching this via the internet
right now. If you could go back to 1995 or 1996 and invest a small
portion and I'm not even saying take the whole you know, take the whole $500,000,
but if you could invest a small portion of that into the
Internet, how would that have paid you today? or when cell phones first came out,
you said, "hey, take my backyard and put a cell phone tower." As much as you may not
like to have it in your backyard. The reality is it would have paid you over
and over and over and over and it still would be paying you today. And this is
kind of like that. This is an opportunity to get in and and have that experience.
So again, you're asking you know you've got the money to invest, you're in
your 40's, you want to retire in your 50's, what is a safe investment with a good
return with limited risk? Real estate is absolutely a safe
investment if you're doing it right. Great returns, limited risk, larger margin
of safety. Blockchain technology, from what I'm seeing, the different countries
that are adapting this technology right now. That the massive companies that are
implementing adopting this technology right now, it this is still in the
beginning stages of it. So I would say if you want to learn more about this,
contact us. Contact our team. There's a link over here that you can go
ahead and click on to get in contact with us to learn more about either a
real estate or about Blockchain technologies and what we're doing. And
how we're getting involved with it. We'd love to share that with you as well. So
hopefully this helps. Everyone have a fantastic day. Go invest more. Alright, so
for you both, you're couple in your 40's, looking to be retired in you your 50's, this video
was for you. If you've got any other comments or questions we'd love to hear
from you. Go ahead and put them in the comments below. If you'd like to learn
how we can help you specifically go ahead and click the link above. We also
have a link down in the description below. Click on that. Come and get some
conversation with our team. We'll give you a specific game plan of what that
could look like.