Learn the best places to invest in 2022 at this free Zoom event, here icgre.com/guide. Adiel Gorel, owner of ICG, has helped people buy 1000s of rental properties securing their financial future.
Every day Adiel Gorel gets calls from street millennials asking how many rental properties to retire well at my age. These are calls with new investors in their 20s. The Gen X population is navigating the retirement of their parents and financing college, or weddings, for their children at the same time. Millennials don’t want to be in that position and see great value in planning now.
Many start to plan for retirement as young as 22 years old, by asking how many rental properties to retire they are striving to make a solid plan. Morgan Stanley Investor Pulse Poll shows that many young adults are, in fact, anxious about having enough savings for retirement. Nearly 25% of millennials are anxious about having adequate funds, and 69% are uneasy about making that money last a lifetime and are looking to real estate investing as a solid wealth builder over time.
“I love Millennials. Millennials are facing this economic change with gusto. Most see traditional retirement plans won’t provide a positive lifestyle and seek out real estate, particularly single-family home rentals for retirement planning. This is a very positive sign of the times. This also works for investors in their 70s. It’s that do-able for all.” -Adiel Gorel, Owner of International Capital Group
According to Transamerica Retirement Survey, 81 percent of millennials are concerned that Social Security will not be there when their time for retirement time comes. Fifty-two percent of millennials who provided an estimate of their retirement savings needs say they “guessed” what their figure should be. Just one in 10 have used a retirement calculator or worksheet at all. We can do better. So today’s focus is on how many rental properties to retire as a Millenial and at any age.
Not only have many Americans lost confidence in their pre-pandemic retirement plans, but there is also a larger mind-shift that has entered the decision-making process of U.S. citizens by and large which has led to this cacophony of asking how many rental properties to retire?
And this mind-shift is: stability is the new “luxury.” Financial security is finally going into its rightful place in the minds and hearts of Americans.
“Financial stability is now seen as the ultimate luxury because when a person from 22-87 knows retirement will be achieved with dignity, providing a good life for family will be achieved without the cost of health; mental physical, emotional or financial, a sense of sovereignty sets in and provides well being in all aspects of life.” -Adiel Gorel, owner of International Capital Group
There is a different American Dream unfolding on the world’s stage, and it all is centered on providing for whole life as soon as possible, rather than the traditional 40 years and a gold watch retirement plan. When asking this now pressing question: how many rental properties to retire the best part of the answer is that ultimately you are in control. You are in control of how many rental properties to retire the way you want to retire. Each rental property becomes a unit of financial stability for you to use to fund your life at any stage of your life. Of course the longer you hold on to them the more value they provide in your retirement. But life doesn’t happen on paper and these single-family rental homes can be used to fund college educations, emergency health issues, even to fund more rental properties to build your wealth even higher than you previously could imagine.
Adiel Gorel is hosting a free virtual event to answer the questions and of course the most pressing question of 2022 which markets to invest in during this time. Don’t miss out, click icgre.com. Adiel Gorel has helped thousands of investors understand how many rental properties to retire at any age or economic background.
At ICG, hundreds of investors have capitalized on the best real estate investing strategies to take advantage of; safely, soundly, and remotely. Single-family homes as long-term investments and scalable. These are homes truly within reach of first-time buyers, including millennials.
The United States is brimming with opportunity right now, because of the 30-year fixed-rate real estate investment loans. Loan rates are at a historically low level, despite surging massively in the past few months. Here’s the best part about this type of loan, you don't have to wait for 30 years to reap the rewards. So how many rental properties to retire? Consider this, after 10, 12, and/or 14 years, all of a sudden this 30-year fixed-rate loan looks like a fraction of the value of the home because inflation made everything else higher in price.
Many investors start with one and quickly see the power of it and buy up to ten homes. Often when investors are at eight homes with the mortgage shrinking in the face of rising inflation, it becomes apparent what to do next. Suddenly that question of how many rental properties to retire becomes a distant worry, and all becomes very clear. Sell two of the houses, pay any capital gains, use the remainder of the profits to pay off the other six, and now those six rental properties they invested in are free and clear, and the cash flow is very good. This is what Adiel Gorel calls Remote Control Retirement Riches, the same title as his book. Because in this scenario with the right real estate investment loans an investor can now retire with six homes, all without a mortgage. That has a huge impact on families all over the world who are following Adiel Gorel’s system. Six is just an example, every investor gets as many or as few building blocks (houses) as they need for their level of the desired retirement.
Investing in real estate is a great way to build wealth and reduce taxes through a variety of means. Moreover, depreciation allows for the recovery of costs related to income-producing rental property. So what is rental properties depreciation in its simplest terms? Depreciation is the recovery of the costs associated with the upkeep of real estate investment properties through annual tax deductions. As time passes each year, the real estate will naturally begin to break down. The depreciation deduction is in essence a recompense for that natural “wear and tear,” it’s a tax benefit of real estate investment properties.
Here’s where it seems too good to be true but it is true. For tax purposes, depreciation is always considered a net loss on real estate investment properties, independent of any profits on the property.
The allowed deduction amount is determined by the property’s market value, the property’s recovery period, and the depreciation method used. The most commonly used rental properties depreciation method is called the modified accelerated cost recovery system, which allows investors to deduct depreciation on a residential property for 27.5 years! Great news for millennials.
Another smart move for millennials and all populations for sure is to get a 30-year fixed-rate loan, which inflation is now going to erode the value of overtime. Another 15 years go by, and all the real estate investment homes are worth a million dollars each, for example, an investor has a lot of taxes to pay, but the wise investor chooses to do another 1031 exchange to expand your portfolio and walk squarely on the path of becoming very wealthy, and you still didn't have pay all that depreciation recapture. Those are some pretty spectacular tax benefits of real estate investing for you. There are some pretty powerful reasons to get the answer to that pressing question as soon as possible, how many rental properties to retire.
