How to Retire with Real Estate Syndications

Investing And Retirement

Today people are living longer so preparing for retirement is more important than it has ever been before. On one end of the spectrum people feel financially unprepared for retirement and fear they may have to work late into their golden years. These people would be happy to retire on time. On the other end of the spectrum a new breed of retirees is trying to figure out how to retire early, long before their golden years. This new breed of retirees are members of the Financial Independence Retire Early (FIRE) movement. Passive income from investing in multifamily apartment syndications can help them both.

How much money do you actually need for retirement?

The common way of preparing for retirement is to save up all the money you think you will need during your retired years. But how much money do you actually need to retire? FIRE advocates are familiar with the rule of 25. Multiply your annual expenses by 25 and the number you get is how much money you need to have saved up at the time of your retirement. For simplicity, let’s assume your annual expenses are $50,000. This means you will need $1,250,000 saved up to retire. How long do you think it would take you to save that much?

How long does it take to prepare for retirement?

Researchers at the Stanford Center on Longevity projected that if we save 10-17% of our annual income starting at age 25 we would be able to retire by age 65. That’s 40 years. For a FIRE advocate that is not fast enough. For someone starting retirement planning late in their 30’s or 40’s the chances of retiring on time don’t look promising either. Fortunately, one initial investment in a multifamily apartment syndication can help both groups meet their goals in 20 years or less. That’s almost half the time! Syndications are profitable partnership/ team-based investments. If you have never considered them, let’s look at how much of a difference one investment can make.