Today, Cynthia Faulkner talks to us about how the ERISA Act of 1974 helped solve the problem of people not having enough money to retire.
With the ERISA Act of 1974, people are now able to have a solid retirement strategy with achievable goals. Instead of accounts gradually depleting each month, people are now able to bring money in each month.
Mike: Welcome back to the flipnerd.com REI classroom, where experts from across the real estate investing industry teach you quick lessons to take your business to the next level. And now, let’s meet today’s expert host.
Cynthia: Hi. I’m Cynthia Faulkner with Growth Equity Group and I am hosting the REI classroom today. And our topic is the ERISA Act of 1974 and why most Americans don’t have enough money to retire.
Mike: This show was sponsored by passiverental.com.
Cynthia: So a little bit of background is most Americans, conservatively, need between $1.6 and $2.4 million to retire. And a lot of my clients come to me, and they have absolutely no idea that that’s how much money they need, first off. And secondly, it’s almost a daunting amount of money to achieve by just contributing to your 401k or your IRA. So without using some sort of investment strategy, it would be very hard to get to that point. So the ERISA Act of 1974 is something that everyone in real estate should know about because that act allowed us to be able to put real estate within your IRAs and be able to invest in that and give you another option of the ways to invest.
And a lot of Americans have no idea that you’re able to use real estate within your IRA. And there’s probably a little bit of reasoning behind that. Your typical stock broker and financial planner, they are not letting you know that you’re able to do that because the typical portfolio is going to be composed of stocks, bonds and mutual funds. That’s what benefits them. And at the end of the day, real estate is a lot more powerful, and it’s a lot safer as a great investment with a higher return and an asset that’s actually deeded and managed within your account.
So we have a lot of clients that, not only do not have enough money, or even if they’re already within retirement, their accounts are being depleted by their minimum distributions. And so we’re able to help not only achieve your retirement goals of getting to that $1.6 or $2.4 million dollars, but if you’re already within retirement, we’re able to help that account from being depleted every single month. Because you will have an actual cash flowing, deeded asset within your account, and it’s also appreciating. So, one day you can either completely exit and cash out and sell your properties, or you can even pass them along to your family members.
And at Growth Equity group, that’s something that all of us are so proud of, honestly. It’s not just that we’re able to help investors, we’re also able to help people that would never be able to achieve retirement comfortably, and help the 65-year-old client that they see their accounts depleted every single month, and they’re not able to stop it, and they don’t know how they’re going to be able to make it to 85.
We’re all living longer. We have better health care systems. The retirement age is a much more vital age and you want to be able to still go out and do what you want and live a similar lifestyle. So without having a great strategy and making sure you have enough money, it’s very hard to go into retirement age and be able to still live a similar lifestyle as you were before when you were still working.
So that’s really what Growth Equity Group does, is we’re here to help strategize with all of our clients, and not only help you invest in real estate, which we all love, but also be able to look at retirement strategies as a long term. So if you have any other questions, visit growthequitygroup.com and I’ll see you next time.
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