How Real Estate Can Help You To Retire

How Real Estate Can Help You To Retire

by Alex Anderson

A lot of Americans are not going to have enough money to retire. These days, it's a sad fact. Instead of complaining about that reality (and the unfairness of it all) the best action someone who wants to retire can do is just make sure that they are not the typical US Citizen. They need to take steps to make sure that they will have the income to enjoy their life and be able to pay their bills, as well as those ever-increasing medical fees.

The most effective way to get around becoming one of those Americans who wind up bagging groceries in their Golden Years, based on the opinion of Robert Kiyosoki, author of the "Rich Dad Poor Dad" book series, is to invest in real estate.

Investing in real estate is a wonderful way for people to prepare for our retirement because it provides something called "passive income". After someone has done the preliminary work, passive income keeps coming in without a lot of effort. A laborer gets compensated only for the time he puts in. A real estate investor, after creating his/her system, makes money for keeping it running. And keeping it operational, if he been smart about it, involves compensating her employees to do the job of checking in on them every now and then.

The wonderful thing about making passive income (such as from investments) is, the longer the real estate investor keeps them, the more money they should make for him, with less and less effort on the investor's part. It's the closest thing to the "Holy Grail" of the financial world.

It might sound appealing, but we shouldn't just dive in. Although this is all very learnable, there's quite a bit to study when you are considering buying investment property - things like understanding economics and the laws related to real estate. The most important thing to understand, however, is one's own limitations. The person who knows where to locate the knowledge she wants is much better off than the person who carries tons of facts and formulas around in his head.

In his book "Cash Flow Quadrant," Kiyosaki advises potential real estate investors to raise their income as well as their understanding. Mr. Kiyosaki teaches about creating a system that can be set up and left alone, freeing the investor to move on to the next step instead of spending all his time working in his business. The next step is to continue that investor's education and begin looking around for experts to employ and properties to acquire.

Robert Kiyosaki also talks about this change as moving from one area in the cash-flow-quadrant to another. He announces that, the 1st step someone has to take toward changing his life is altering the thinking process. If someone adjusts the way he/she processes the thought of money, then she will wind up in a much better position to change his interaction with it.

How people think determines the actions they take throughout the day, and those actions determine their success. The main value of studying books like Kiyosaki's "Rich Dad, Poor Dad" series - is the exposure to a new paradigm about stuff. When investors see how easily it can be to develop new skills and acquire better knowledge, they are virtually impossible to stop.