Jason Hartman hosts a two-part show where we start with some reflections on the recent “Meet The Masters of Income Property Investing” event at The Hyatt Regency in Irvine, California. Investment Counselors, Ari and Sara join Jason as they discuss the following:
1) Establish 5 year plan for where you would like to be in 2016
2) 26-27% real unemployment rate
3) Decline of standard of living for America (ask tenants)
4) Which entry point are you?
a. Beginning Investor – Optimize rapid growth that can be re-invested for long term compounding
b. Growing Investor – Optimize for stable long term (inflation protected)
c. The short path to retirement – Optimize for low risk and high stability
5) Prime age for spending is 46 years old
6) Gen X is 40 million
7) Gen Y is 80 million people (early 20’s now)
8) New investors should seek returns in the 20-25% range
9) The big problem now is that people are running out of money before they die
10) Social Security will not work (look at Greece). People are living longer too now.
11) Young Investor
a. Huge impact on higher returns early in your investing career (bell curve)
b. New Investors also have the opportunity to cherry pick high return small deals to start their career
12) Investing $1,000 annually (9k) from age 21-30 and letting it compound, or $1,000 per year after 30 years old (35k). Early investor will win.
13) Invest while young and seek safer investments when older.
14) The growing investor
a. Stability matters
b. Inflation creates volatility by disconnecting the nominal (name only) value or real value of assets
c. Income properties are best positioned to create inflation protected, stable growth
15) Investors need to leverage and make debt work for them (redistribute wealth)