Worried About Retirement Income?

Here’s some of my personal  thoughts about how you can put a stop to your retirement income worries.

worried about retirement incomeBuying an investment property has often been seen as a way to a secure retirement.

However, I believe that creating a sustainable cash flow is the key to alleviating retirement income worries.


Creating Cash Flow

The easiest method of creating cash flow is to start a sustainable online business. A sustainable online business can be seen as an investment because it can be sold for a profit much the same as a bricks and mortar business.

So lets compare the costs and benefits of both investments with regard to cash flow.

Real Estate Investment

As an example, in Australia, a $400,000 home will yield around $400 a week in rent which equates to about $1,800 a month. If you borrowed all the money you would pay $2,300 in interest on the loan, about $150 a month in rates, plus 7% or $126 for agent’s fees, and maybe $100 a month for maintenance, That makes a loss of $776 or about $9500 a year in holding costs.

Home based internet business

If you were to take the time to investigate all training options, your monthly outlay could be as little as $0. I know it sounds crazy, but you can get your own online business up and running for zero dollars

However, it would take time and imagination for this business to take off. If on the other hand you were to spend $50 or less a month on all your needs for Internet success, you would find that your business would grow rapidly. with hard work it’s possible that within 6 months you could be making a $1000 per week. You would then have a business that would be an asset that you could sell at a later date.

So which is best for you?

If you bought the property in my example above outright for $400,000 you would end up with an income of about $1400 per month or about $325 per week.

So you would need 3 of these fully paid off properties to generate a cash flow of  $1000 per week. In other word you would need to spend $1.2 million to get a retirement income of $1000 per week.

Alternatively, you could start your own online business for as little as $50 a month and with work and effort it would have the capacity to generate you an weekly income of $1000 +

This is not to say that real estate is not a good long term investment strategy. It’s just that an internet business can bring in the same dollars with a lot less financial outlay and with a lot less risk.

Worth thinking about?

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