Don’t worry I am not but you should always know what retirement income you need to live. Why? Well this should be your target you aim towards when you invest.
Now I am going to make a prediction about you and I know I will be wrong but bear with me:
You want a retirement income of £100,000 per year.
Now I am probably wrong as I hope you want more but lets just say you would be mildly pleased with this outcome. So how do you go about building it?
- A well bought property can bring you in £200 per month positive cashflow every month. That’s £2,400 per year. Divide £100,000 by £2,400 and you get 42 properties.
- To buy such a property requires around £5,000 to cover you for initial set up costs, working capital and sundry costs.
- 42 x £5,000 = £210,000. This is what you have to raise to build this cashflow positive portfolio.
- Beg, steal and borrow to raise this £210,000 as quickly as you can.
- Invest in cashflow positive properties.
If you can raise £210,000 right now then you can retire. If you can raise around £21,000 per year then you can retire in 10 years.
So its up to you. You need to ask yourself 3 questions:
- What is my target retirement income?
- How quickly can you raise the initial funds?
- Are you up for the challenge?
If you need help, take read of some of my advice books.