WWII 018: Investing in Your 50's, Private Company Investing, Economy Isn't Growing, Artificial Intelligence

In this episode of the podcast, I speak to people in their 50's and offer some things they should think about as they review where they are and what their expectations are for assets and cash flow as they approach retirement.

Main Topic

· 15 years not a lot of runway. enough to take drastic steps, but not much time left for compounding the value of your assets.

· The old 4% drawdown is baloney, you should think about adding assets to your portfolio that provide cash flow

· If you are behind your retirement plan goals, it's time to hunker down, strip out expenses, maximize your earning potential and get back on track.

· Retirement is about having passive cash flow to pay your expenses. That cash flow should have the potential to grow over time.

· An example of adding cash flow to your life: Buy one rental property a year, 15 years, $200 a month free cash flow, that would equal $3k per month of growing cash flow. Down payment for each is $30k, that’s a total of $450k invested. Rents will grow over time and so will your cash flow

· Build a portfolio of income stocks.

· Learn to buy distressed bonds. This is an area where having professional level skills in investing is an absolute requirement.

· Create a business on the side so you can create some income. Have a hobby you enjoy that could be a business? Something you always wanted to try?

· Consult. This is an awesome way to ease into retirement and have decent cash flow. Consultants earn a pretty decent hourly rate, and all that expertise you have built up over time is valuable.

· Ramit Sethi of the website "I Will Teach You To Be Rich" has created a fantastic course called "EARN 1K" that can help you figure out ways to add income and cash flow to your life.

I have found that retirement is all about cash flow, not net worth, especially after the real estate crash. I have met people who have a net worth of $2 million, which looks great on paper, but when it comes to retirement income, they are just barely squeaking by on their Social Security and a small pension. It’s great that you are worth $2 million, but ultimately, it’s your cash flow that will determine your quality of life in retirement, not your net worth.”

Jason R. Parker
Author of "Sound Retirement Planning: A Retirement Plan Designed to Achieve Clarity, Confidence, and Freedom"

Ask JB:

Do my making money make someone else poorer?

submitted by vladtitov151

I can't even stop to think that the more i make money, i make it off another person. I don't feel bad or guilt. but i just need to know if my income is getting someone else poorer. thanks for your answer.

Looking for advice after investing $10,500 in a private US company

submitted by jubilee62

I invested in a private US company ($10,500) in 2013 that specialises in oil and gas exploration. He said he was going to find oil in Haiti and he was based in Miami. It is not on any stock exchange however. I got a paper saying I owned 3.5% of the company. However every 6 months he says he needs more money to find oil or he could send me my money back and he threatens to "dilute" my shares if I don't send him more money. What should I do? I am in Australia, so not an American citizen.

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Thoughts on this podcast? Disagree with me on some point? Something I missed? Leave a comment!

About the Author

Jeremy Scott Bailey is an investor, author, entrepreneur and host of the "What Works In Investing?" podcast now available on iTunes. He is founder and Chief Investment Officer of Burgeón Group, Inc. an investment advisory firm that provides portfolio management services to families and individuals.

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