Income Replacement Program
Long Beach

This guide was created to show you how powerful real estate investing can be by helping you get started in making your very own real estate investment plan.

We want you to dream big and write down all those life goals you have that you only thought you could have if you won the lottery.  You can always do it again later so feel free to aim high.

In order to keep this relatively short and to the point we are going to assume that you understand where we get our numbers when we show you the returns we use.  If you get confused don’t panic, just download our Real Estate Investment Principles or Planning Guide, both are great reference books.  

If you have the courage to talk to people in your career field who have retired in the last few years you will undoubtedly find out life isn't what they would have hoped if they didn’t bother to plan for it.

As an example of how the following chart works if you have $50,000 to invest and you want to see what it will be worth in 15 years and you chose a return of 20% it will grow to $770,351.  If you chose a return of 30% it will grow to $2,559,295 (examples are highlighted for illustration purposes).

For those who aren't sure returns like this really happen we encourage you to grab a copy of our Basic Investment Guide.  In that guide we go over and illustrate how returns in real estate are calculated.  You’ll find that returns in the 20% - 30% range are very common and conservative.

What this chart will give you is an idea of what that amount might grow to in the future.  We have included the projections for a 20% annual growth rate and 30% which are conservative based upon our years of watching values increase.  Remember, real estate offers four components of return and these percentage returns below combine all four components (click here to get a refresher on the four components of return, page 8 of Real Estate Investment Principles Guide).

**ENTER WHOLE NUMBERS WITHOUT COMMAS, PERIODS OR DOLLAR SIGNS IN THE FORM BELOW**

First, enter the retirement income goal, we recommend 100% of your current income but feel free to adjust. Financial planners today tell us that we will need 70-80 percent of our pre-retirement income to maintain our current standard of living.

Let’s shift gears and do some dreaming about what you want your life to be like.  Thoreau said, “In the long run, we only hit what we aim at…  Aim high!”  This is something kids know how to do, but the older we get the more we forget how.  The one time most adults seem to really dream is when they go to the corner store and buy a lottery ticket.  “Boy if I could just win the $50 million I could ******.”  When we are dreaming about winning big it’s pretty easy to  make a list of dreams.

Below, you’ll see a sample to give you an idea of the kind of list we want you to create.   Enter everything as an annual cost (for membership type items) and whole numbers for items you purchase even if you get a loan (like cabins and cars).

"Dream big, there is little power in little plans."