Ep 213 - How to Turn $100k of Lazy IRA Money into a 6-Figure Passive Income

Hey, everybody. Flip and Danny here, founders of the Freedom Real Estate Group family of companies. Sorry, welcome to another episode of our podcast we just called Freedom through Passive Income. My hand got tired of holding the microphone these last five episodes, so I needed some assistance. So thank you, Hulk. And if you're not watching, I'm really sorry, but I'm using the Hulk hand to hold the microphone. So that way it makes it easier because this was so difficult. But we'd also like to welcome Ben. This is the sixth and final episode that Ben is joining us, this time until we bring him in for the rest of the year to do all of our podcasts for us. So welcome again. Thank you for joining us. This episode is entitled how to turn on $100,000 of lazy IRA money into a six figure passive income.

This was actually, I think what. This is so weird.

Pop. Better than coffee.

But this was the first email that you sent me, right, about this, like, self directed IRA series. Without even mentioning the series, you just said, hey, check this out. This is what I was thinking of sending everybody. And it got a great response. And when I read it, I was like, can we do a podcast about this? And you're like, absolutely. I was like, cool, I'm going to put your name and the information so they can call you. So we were planning to actually do this, but then before we ever got to it, you had said, hey, here's actually a series of some things that I'm going through right now and all the research and I'd be happy to share all of this. And I was like, boom, we've got a Ben Cat series. So, Ben, this is the gold, in my opinion. And, you know, take it from here.

All right, well, we talked about last series, the last podcast, that time is your friend this month. And every month after this month, time starts to work against you. If you set things up quickly as we're talking about taking action, then time every month after this month becomes your friend. And that's basically the dividing point. Each time is taking effective action with an investment. Time can become your friend and it starts to work for you rather than it's starting to work against you on this. And with that in mind, I'm going to talk a little bit about what the overall objective of the Freedom Group of companies is. And that is to provide investors like you with a pipeline of quality investments secured by real estate. And because of that, that allows you. We're really not. Our goal is not to sell you an individual investment. So I have my. In the past year, series seven, my series 65, series 66. There are some investment firms out there that will occasionally have an investment that they want to unload on their clients. They'll say, hey listen, we've got a lot of this particular investment today. So they'll say to their investment team, they'll say, hey listen, why don't you sell a bunch of this? That's not what we're about. So when we talk about current investment, like a multifamily investment that we had Daytona or whether it's in Jackson, Mississippi, our goal is not to say, hey, we got this investment here, we want you to buy it. Instead, we're taking a step back and the bigger intention is to provide for you this year, next year, decades from now, these continuing pipeline of investments, quality investments that allow you to be able to reach your investor, your investment objectives. Because you can't reach your investment objectives with just one in one investment.

That's correct.

So that's what I'll do. So we're in that light. We want to talk to you about what the power of 10% can mean for you. The power of 10%. We're talking about 10% return in this. And one example is this. What can a one time investment of $100,000 plus your annual IRA investments, what can that mean to you in the next five, 10, 15 and 20 years? So that's what we're going to talk about here today with this example. So $100,000 one time adding your $6,000 investment for you and if you're married, $6,000 for your spouse, $12,000 each year to that one time investment of $100,000. Well, we have an email that I sent out to the clients that I work with that we can make available for you. But simply what I did was I put out each year what the real numbers are. And based on our scale of what we pay out with our interest, which is from 50,000 up to 99,000 is 6%. From 100,000 to 299,000 is 8% a year. Then when your investment grows to $300,000 and more, it'll be that 10% return that you'll get each year for that. Well, following these specific numbers, starting with $100,000, which puts you at that 8%, within five years you'll have $240,000 in your account. That means with that investment going forward, that would be about $24,000 a year addition to your retirement income. Now let me start with this. When you, when a person is starting to figure out what their retirement income is. One of the best ways for them to start is with their Social Security income. So they can go to Social Security.gov you can see what your estimate of your future security, Social Security income, retirement income will be when you retire. And you got your choice between 62 and 70. You've talked about this in previous episodes. In fact, the very first episode in this series was about what's your freedom number? Yes. So for your freedom number, the starting point is what's your Social Security income going to be? So if you look, for instance, in Social Security.gov and it says you're going to get about a $3,000 a month Social Security income. So you're at $36,000. That's your starting point. If you take this $100,000 and within five years it grows to 240,000. Now you're talking about another 10% or so. You talk about another $24,000 a year that you'd be adding that. So just that one time payment or investment up to the within five years is going to create another 24,000. It'll take your 36,000 up to about 60,000.

Yep.

That's quick math right there. They're waiting to see if I actually got this one. Do I have any coffee left? All right, so that's what we're talking about with this. So there's two, two groups of people we're going to talk to about. This one is you're in your 30s or 40s and you want to retire early, which means into your 50s. The second group is people that are 50 years old or above. And let's say you only have $100,000 if you're married, between the two of you in your IRA savings or your regular savings, you got $100,000. What would that mean to you by the time you reach 70 years old? So that's the scenario we're talking about. So again with this, get the real numbers so we can get to you on this. That's within five years. It'll be 240,000 within 10 years. Any guesses on this? It's going to be to 440,000, which means that'd be an extra $44,000 a year. So if you're 60 years old and you start today, by the time you're 70 years old, using this, you can get up to an extra $44,000 a year by the age of 70, if that's when you decide you want to just pull the plug and start to retire. So this is an extra $45,000 a year of income in addition to your Social Security, in addition to other savings that you have, in addition to other investments. They're just talking about passive, carefree, on the beach type of income that you can enjoy without having to bother with managing properties, etc. Managing accounts going to work each there within 15 years, that's going to grow to nearly 790,000. So $80,000 a year of income. Within 20 years, that's going to be $135,000 a year of income that your one time, $100,000 a year income or $100,000 investment plus your annual IRA contributions is going to lead to within 20 years time. So if you're 50 years old, for instance, or in that area and you've got not that much in savings, not as much as you want to have $100,000 you've been paying for your children to do this and that you've had some financial bills you've had to pay. That doesn't mean that by the age of 70 when you retire, you can't have a good income. So $135,000, $100,000 starting point with that, $12,000 a year of both you and your spouse putting your IRA contributions into that with this.

I love it. The power of the numbers, it just blows me away every single time. Thank you for that Hulk. And I thought he was showing you.

The power of the hookah.

This is power.

This is what is magic to me is looking at the numbers and really understanding the power behind it. And that's what makes me move into action. And I just love the way that you describe what are the feel good emotions for me like when you say, you know, certainty or carefree or on the beach, like now I'm going, I didn't have to really do anything for this. You just told me I have to take what's already existing within the resources that I have put it in this place and this is what I get. It's really, really like this is why I love this series so that math. Thank you for sharing that today.

It's very exciting. And when we talk about the debt fund, one of the things about the debt fund as an example, it's one of several funds that we'll be having here available to you in the coming months is that the debt fund allows you to predictably look ahead of what it is. So the market, stock market's up and down. It's a wild, crazy ride. We're all for having some Money in the stock market and being diversified. This is a way for you apart from your other real estate, if you own properties, it's apart from your other types of investments and stocks and bonds and mutual funds. It's a predictive way to say, hey, listen, 10 years from now, 15 years from now, 20 years from now, I know I can count on this type of income because of this predictable type of return. And yet if I'm hard working, busy with my profession and not going to be pulling my time and attention away from that, it's not going to pull my time and attention away from family or even from travel. If I'm doing extensive travel, I put this $100,000 in each year, I just take my IRA contributions, add it to that, and I can see what's going to be to me in the next 10, 15, 20 years. Very exciting.

Yes, it is super, super exciting.

It's been life changing for my wife and I and this is one thing. Flip and Danny are friends of ours for many years. We appreciate the hard work that they've done these, these many years in real estate to create these opportunities for us. And when you talk to me on the phone, the passion that I talk to you about that you're going to hear from my voice is how it's changed my wife and I. It's just really accelerated our retirement funds and it's given us, you know, all the changes that are going in the world. It's not so scary now in terms of our financial planning for our retirement because there's a bit of predictability to what we know is going to be happening. And that is very comforting and very exciting.

It is. How do they get into contact with you?

By calling here at the office. We'll have the information that we'll be including on that that they can reach me either by email, by phone. Happy to talk with you and answer your questions. Looking forward to that. The conversations of talking with people about something that's so life changing to them as they plan out their future years ahead, it's very gratifying. And I was first an investor before I joined the investor relations team. And I tell you, when we're talking about things, it's things that are dear to our heart, my wife and I's heart. And so it's going to be a pleasure to be able to talk with you and be able to share with you some of the joy that we had from being able to experience it.

I love this. Thank you so much for this series, Ben. I appreciate you.

Yes. And thank you very much for taking time out of your day to come over here and record all of these last six episodes with us. And you even had to endure five days of fun shirts. So I apologize for that.

I think yesterday you guys were fighting on the fun shirt.

Yeah. Pretty close. Pretty close.

Well, we hope that you enjoyed this episode. Make sure you're heading on over to FreedomCapitalInvestments.com to join the investor club. Sorry, one more in there. Yeah, Hulk hand. Sorry if you're just listening hulk hand. But again, we're on all the social medias out there but make sure you're catching us and hitting the hearts and likes and comments and reviews and all that.

Yeah, throw a review out there for Ben. He deserves it.

But we like to end all of our episodes with invest smart, Live Happy. Bye everybody. Nothing on this show should be considered specific personal or professional advice. Please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions and information on this show are not guaranteed. All investment strategies have the potential for profit or loss.