2020, not only was the start of a new decade; this decade started on a Leap Year. (A leap year is every four years and every twenty years, the decade begins as a leap year.)
You might be wondering, why am I talking about a leap year, triathlon and building passive income success.
On February 29, 2020 (Leap Day, 2020), I decided to start training for a sprint triathlon. (Sprint Triathlon, is half the distance of the Olympic Triathlon distance) https://caloriebee.com/workout-routines/Sprint-Triathlon-Training-for-the-Beginner-Triathlete
My wife and I have been investing in real estate for twenty years,(2000), and our investment real estate has allowed us the privilege of doing many different things with our lives, including an incredible experience after a 30-year exciting corporate career.
Like many careers, they come to an end; the trick is to use your career earnings to build a base of passive income that allows you to live the same lifestyle as you did in your working years.
You may also have several life long goals that you need to fund.
One of my long term goals is to live a long life.
Living a long life takes not only a solid financial plan, but it also takes a robust health plan.
Living a long life has spawned tens of thousands of industries and business, all telling us they have the magic elixir, open up your wallets, and the formula is all yours.
According to Canadian Living, there are 20 tips to increase your longevity.
20 Tips to Increase Your Longevity (https://www.canadianliving.com/health/prevention-and-recovery/article/20-tips-to-increase-your-longevity
These are all rock-solid tips; the only thing missing is how to pay for your durability.
I have been suggesting for the last two decades investment real estate should be one of your primary financial tools in building a base of passive income.
Most mortgage amortization periods are between 20 and 30 years; let’s use the average of 25-year amortization.
If you purchase your first investment real estate property at 25 years of age, you would have your first investment property paid off in full at the age of 50. Should you live a long life, until 100 years of age (don’t laugh between 2030 and 2040, there will be over one million people in North America over the age of 100). You could have 50 years of excellent passive income earnings, building a strong financial foundation, unlocking sustainable wealth and creating a living legacy.
It is never too late to purchase investment real estate if you have a high chance of living to 100.
Funding Life Style Goals
In today’s low-interest-rate environment, you have good news and bad news. The bad news is your financial investments are hard-pressed to earn 2 to 5%, and double-digit returns are almost impossible to attain. Trying to create double-digit gains tends to come a higher risk than most of us are willing to take.
I have written several blogs on the financial return of investment real estate and how a good tenant can pay your mortgage balance down every year and the return on your initial investment continues to grow.
Markets go up and down along with the value of your investment real estate, but mortgage paydown and rental rates tend to be reasonably stable.
Don’t bank on any equity growth, adopt a long term buy and hold strategy.
If you are starting your corporate career, it is hard to envision the end. Know like every phase in life, child, teenager, young adult and adult all of these phases come to an end, why not ensure when the time comes to an end; it is on your terms.
Add investment real estate to your financial portfolio.