Financial Freedom Investing
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‘Was I keeping my own daughters in the dark around money?’

‘Was I keeping my own daughters in the dark around money?’ | Financial Freedom Investing | Scoop.it
How one planner’s pro bono work changed how she approached teaching her children about financial matters.
Nancy Conrad's insight:

I probably have bored the socks off of my now-grown kids talking about investing in real estate, the power of compounding interest, and the importance of planning. But they have all done well as professionals and contributors to their own future retirements. 

 

In contrast, this isn't a subject I grew up with. My Dad, who passed away not too long ago, invested only in the stock market, and kept my Mom at arm's length when it came to investment decisions. He said it was because she didn't have a head for money, which turned out to be true. But that was because nobody took the time to teach her when she was young enough to use it to her advantage.

 

This article brings up the worthy subject of how so many people are financial illiterates and why we ought to start talking about it more.

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You Asked, We Answered: Investing with Self-Directed IRAs

You Asked, We Answered: Investing with Self-Directed IRAs | Financial Freedom Investing | Scoop.it
For this month's You Asked, We Answered, we discuss the basics of self-directed IRAs and what it means to invest in alternative assets like real estate and precious metals.
Nancy Conrad's insight:

Here's some great advice about what you can and can't do inside your self directed IRA.

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Here's Why 43% of Baby Boomers Could Wind Up Cash-Strapped in Retirement

Here's Why 43% of Baby Boomers Could Wind Up Cash-Strapped in Retirement | Financial Freedom Investing | Scoop.it

"The median savings amount among workers aged 56 to 61 is a measly $17,000, which is a drop in the bucket."

Nancy Conrad's insight:

The sad news that most Boomers have a median amount of $17k set aside for retirement tells you that half of people have even less. They either have suffered an enormous financial setback, or never made an effort to save any money, or simply gave up.

 

But what if that same person got serious with their tiny nest egg and did something bold?

 

Fact is, if I took $15,000 from my self directed IRA, and paired it with my husband's $15,000 self directed IRA, I could buy a non performing mortgage note, get it performing again as intended or by taking back the property, and by the following year expect to see, on average, about $400 a month. That would leave enough set aside to deal with expenses. 

 

That's what happens when someone works with a note buyer. If your money were to accrue for the next 10 years, you and your spouse would accumulate a nice little chunk of $48,000 on top of owning a performing asset. Then you could buy another note, and do it all again with money to spare.

 

For someone dependent on Social Security and a part time job, that extra income from the note would count for a lot, wouldn't it? And if it was in a Roth IRA, it would be tax free, so you'd get to keep all of it.

 

Now this is just an example of what's possible with my preferred method of investing, but my point here is that it's never too late to do something about your retirement income. 

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Here’s how much ETF fees have dropped since the financial crisis

Here’s how much ETF fees have dropped since the financial crisis | Financial Freedom Investing | Scoop.it
Exchange-traded funds have long been touted as a cost-efficient way for investors to get easy access to basically any asset class, sector, or region of the global economy, but investors may not appreciate how cheap they’ve gotten in recent years, nor how rapidly fees have been falling.
Nancy Conrad's insight:

It's good news that mutual fund fees are shrinking, but still not enough for me to invest in them. Mutual fund fees will eat up a large portion of your investment capital in an exponential way over time.

 

And note this: Mutual funds have such high fees, and 96% of the time will they ever match the stock market average. To understand this, according to Tony Robbins, let's say you play blackjack and you have a 20 on the table, which means you have an 8% chance you’ll get an ace if you say ‘hit me.’ But you have a 4% chance of getting the right mutual fund that beats the stock market average. 

 

Those odds are pretty slim, wouldn't you say?

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Unearned Discount

Unearned Discount | Financial Freedom Investing | Scoop.it
In this blog, we will discuss different important variables in pricing a deal.
Nancy Conrad's insight:

We concentrate on notes and buy and hold properties in our self directed IRA portfolio. Here's a great article from Eddie Speed explaining how to buy and price a note purchase from a seller who financed a property in order to sell it.

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BiggerPockets Podcast : Real Estate Investing and Wealth Building to Help You Get Bigger Pockets : #230: Real Estate Investing as a Side Hustle with Grammy-Winning Producer Seth Mosley

Real estate doesn’t need to be a full-time business, but it can be a fantastic side hustle! That’s the topic on today’s episode of The BiggerPockets Podcast where we sit down with Seth Mosley, a musical artist and produce (with several Grammy awards to his name!) who invests in rental properties on the side. Seth has a ton of great tips to share today for anyone looking to buy more real estate but not spend 40-hours a week doing i. And be sure to listen for his fascinating strategy on how he used a virtual assistant to help find and analyze deals!). This show is packed full with tips, stories, and humor, so don’t miss a moment of it!
Nancy Conrad's insight:

Most of the people I know who do self directed IRA investments start in the real estate investment niche. This usually means buy-and-hold or fix-and-flip real estate, which can bring some great gains for investors.

 

But if you're doing it yourself, rather than partnering up with someone smarter and more experienced than you, you'll want to learn as much as possible. I recommend BiggerPockets as a place to connect with other investors and learn more. 

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Are You Living Paycheck-to-Paycheck? | Investopedia

Here are some ways to stop living paycheck-to-paycheck and start saving some money each month.
Nancy Conrad's insight:

Unfortunately, I see way too many people who don't know that they need to pay themselves first. It's the one thing wealthy people do that sets them apart from the rest.

 

This article has some great ideas for getting a handle on that budget, but I know some folks who are in this predicament are dealing with a 'need' that prompts them to spend money when they have it because they feel like there's a lack of money - and spending feels good.

 

My solution? Set up a bank account system that automatically deducts a set amount - 5, 10, 15, or 20 percent - and drops it into a separate account for savings. And then, don't TOUCH it unless you have a big fat freakin' emergency. Looking at that growing account will go a long way toward making someone feel like they're in charge again.

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Boomers Look To Real Estate To Afford Retirement - AAOA

Boomers Look To Real Estate To Afford Retirement - AAOA | Financial Freedom Investing | Scoop.it
As many as 10,000 baby boomers retire daily. Members of this generation are increasingly looking to real estate to diversify their retirement portfolios and boost returns. Many boomers have realized their retirement plans are not sufficient and have turned to alternative investments, such as real estate, to compensate. About 30% of baby boomers have no retirement savings an
Nancy Conrad's insight:

With self directed IRAs as a place an individual investor can go to fund a real estate purchase for cash flow, it's a no brainer to use this as a way to grow one's retirement capital during the accumulation phase.

 

Unlike stocks and mutual funds, once you begin to draw money from your real estate investments, it's easy to use the income for funding daily living, while not draining the value of the investment itself. Plus, it allows an investor to leave something to their heirs.

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7 simple ways boomers can catch up on retirement savings

Learn how to save enough cash for a comfortable retirement.
Nancy Conrad's insight:

Get out your calculator, and prepare to see how you can add more money to your savings stash. Starting with the 'pay-yourself-first' strategy that has always worked for me, you'll see some basic ideas that, over time, can shorten the number of days you have until you reach financial freedom.

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Father passed away and I'm inheriting $1M+. What next? • r/personalfinance

Father passed away and I'm inheriting $1M+. What next? • r/personalfinance | Financial Freedom Investing | Scoop.it
My father passed away unexpectedly a few weeks ago and as I’ve unraveled his will and trust, I’ve learned I’m inheriting a little over on
Nancy Conrad's insight:

What would you do if a parent left you $1 million? Apart from grieving the loss, many people would set about spending it up in the short term. And of course, they'd be wrong.

 

This young man seems to take the sensible approach, and is considering his options. In our opinion, it would be wise to put that money to work so he could live off the proceeds, in part. His father has given him an amazing gift that needs stewardship.

 

But where to start? While we would invest in real estate and mortgage notes, this discussion offers up opinions from many about what to do next.

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Real Estate Investor Summit Podcast by Mitch Stephen on Apple Podcasts

Real Estate Investor Summit Podcast by Mitch Stephen on Apple Podcasts | Financial Freedom Investing | Scoop.it
Download past episodes or subscribe to future episodes of Real Estate Investor Summit Podcast by Mitch Stephen for free.
Nancy Conrad's insight:

I pick out several investment podcasts to automatically load into my phone. It's easy to listen to the latest wisdom from other investors when you're out driving, making dinner, or working out at the gym. Here's one that concentrates on financial freedom that I think you'll like.

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