Do you want to retire from real estate with plenty in savings and some horizontal income streams to keep cash flowing? Anyone can do it, but many people fail to take the steps necessary to actually make it happen. Even more wait too long to plan for retirement and wind up with far less than they need to live comfortably in their later years.
Don’t let this happen to you.
On a recent Real Estate Rockstars, retired agent Tim Rhode shared several tips with agents on planning for retirement. If you take Tim’s advice to heart, you’ll have no problem living comfortably after leaving the industry. Not only that, you’ll have the financial freedom needed to spend your time doing the things you love with the people you care about.
Read on for three of Tim’s real estate retirement tips. To hear more information on retiring from real estate, including how to evaluate whether or not you’re on track, listen to the podcast below.
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Real Estate Retirement Tip No. 1: Live Within Your Means
It sure would be nice to drive a fancy new car to work, but is it really necessary? Obviously not, but many agents seem to think so, especially once their commissions get larger and more frequent.
As you move up in the real estate world, don’t give in to the temptation to spend. Live within your means and save as much as possible. Instead of wasting money on expensive, unnecessary items, invest in real estate or other assets that will help you generate wealth.
Real Estate Retirement Tip No. 2: Focus on Financial Defense
During the interview, Tim shared one of his most powerful wealth-building secrets: he focuses on financial defense.
Most agents focus all of their time and energy playing offensively – trying to earn as much money as possible. While there’s nothing wrong with earning more money, a higher income won’t do you any good if you can’t keep your expenses in check.
As your annual income increases, do what you can to minimize your expenses. Most agents can bring their expenses far lower than they realize. For instance, when Tim was earning $500,000 annually as an agent, his combined personal and business spending hovered near $100,000.
Real Estate Retirement Tip No. 3: Plan for Retirement Now
Tim had something to say to young agents specifically: “When you’re in your 50s and 60s, you’ll either hug yourself or curse yourself for the financial choices you made in your 20s and 30s.”
Don’t make the mistake of waiting to plan for retirement until you’re in your 40s – it’ll be too late. Tim planned for retirement from an early age and managed to retire from real estate at 40. If you plan and take action toward retirement now, you’ll be able to enjoy an earlier, more secure retirement.
Learn More About How to Retire from Real Estate
Interested in learning more about what it takes to retire from real estate? Listen to the complete podcast with Tim Rhode.
After that, remember to take action on the things Pat and Tim talked about. While learning what it takes to retire is important, that information won’t do you any good if you fail to put it to use in your day-to-day life.
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