Procrastination is costing you.

‎If you haven’t been living under a rock or with a stockpile of bulk goods in your garage, you’ve visited the inflation-zoo that’s happening right now. In most cases, we can’t avoid paying the higher costs, but we can control how it impacts our spending ability.

I hear you asking, BUT HOW CAN I CONTROL THAT!?!

Well, think about where you currently keep your capital…

  1. Savings Acct? 

The national avg savings account earns .07% annually. Inflation is still currently reported as around 5% – and that’s only because the Fed raised rates aggressively to come down from the 8.6% we were at last year!  Keeping your money “safe” in savings is actually not that safe at all! It may be FDIC insured, but ask the government if they’ll reimburse you for buying power lost to inflation.

  1. Home Equity?

Equity in your home helps your net worth but not your cash flow. It’s earning 0% trapped in your house. Tapped via a refinance or HELOC and invested wisely could help you not only grow your net worth further, but get some mailbox money in the process. It’s a strategy known as “interest arbitrage” where you make sure the interest you are earning is higher than the interest you are paying – you pocket the spread!

  1. Retirement Acct?

I don’t know about you, but I don’t fancy leaving my retirement finances to the emotional whims of world events or to what a “big wig”  randomly tweets. The last couple of years have been a super rollercoaster for the stock market… On top of the “small” fees charged by financial advisors and brokerage firms, most people already don’t contribute enough to be able to retire that way they dream. I’ll continue to watch the stock market from the sidelines.  

Another option is you can redirect your retirement funds into a self-directed IRA and invest in real estate instead. This is tax and penalty free!

The Fed is trying to control inflation with higher interest rates, but depending on that outcome is taking the “wait and see” approach. More like “wait and watch you keep paying inflated costs.”

Investing in multifamily puts your finances back in your control. Yes, being an active investor is time consuming, but with the right guidance you can accelerate your investing timeline, avoid some major roadblocks and truly live now AND in retirement.

Even if you invest passively in a syndication (group investment),

You get to vet and CHOOSE the asset

You get to vet and CHOOSE the operating team

You get to speak with them and ask questions

Try getting Elon Musk or Richard Branson on the phone

What’s the first step you should take to claim the future you deserve?

STOP PROCRASTINATING. 

‎‎Sometimes the pressure to “invest wisely” can cause you to be frozen with fear. What do we do when we’re afraid???

NOTHING!

  • We over analyze
  • We fret about all the “what ifs”
  • We look up that “one more thing” that will magically catapult our knowledge to the next level overnight

Sometimes you need to just do a cannonball jump in and figure out your most effective stroke on your way up. You can’t prevent unwanted things from happening to you by sitting on the sidelines… You might end up getting splashed from someone else who decided to take the leap! 

If nothing happens TO you… then nothing will ever happen FOR you. Same with your financial future… If you don’t proactively plan what happens FOR you, life will happen TO you. But you have to be the one to make that ‘something’ happen, you have the control.

I get it, the unknown is scary.

It’s easier to stay in your comfort zone and follow the plan everyone else follows.

But if you just take one small step at a time and you will develop a new comfort zone.

One that is much more aligned with your goals now and in retirement.  No matter what inflation, the economy, or the world does, you’ll be prepared and able to handle life’s punches.

Whether you’re inserted in being an active investor in multifamily or passive, reach out! I can help guide you to some resources appropriate for your goals.

Until then… take action and invest wisely! 

 

Nicole Pendergrass