According to a recent CNBC survey, 71% of Americans are worried social security will run out during their lifetimes. This goes hand in hand with another survey that found, 64% of Americans aren’t prepared for retirement.
The Americans worried about social security running out are the same ones that aren’t prepared for retirement, which appears to be most Americans.
COVID-19 didn’t help matters as 29% of Americans reduced or entirely stopped saving for retirement due to financial distress brought on by the pandemic, with 9% even having withdrawn from retirement funds to make ends meet – pushing back their retirement timeline even more.
Americans aren’t prepared for retirement, and it appears to be getting worse and worse with each generation.
“Americans are reaching retirement age in worse financial shape than the prior generation, for the first time since Harry Truman was president… In total, more than 40% of households headed by people aged 55 through 70 lack sufficient resources to maintain their living standard in retirement.” –Wall Street Journal.
Surprisingly, some Americans have simply raised the white flag when it comes to retirement. Many don’t choose to save for retirement because of low income or high debt obligations.
According to a recent study, around 21% of Americans haven’t saved anything for retirement, and almost 35% of millennials don’t even know how much to save. Millennials are an interesting bunch as 44% of millennials feel that student loans have put them behind the retirement eight-ball for years, with 39% saying credit card debts have affected their ability to save early for retirement.
While most people concentrate on the 71% of Americans worried about social security and the 64% unprepared for retirement, I’m more curious about the 29% not worried about social security running out. Undoubtedly, there’s a segment in there who don’t care, but there’s also a certain percentage who are prepared and another percentage I would say are super-prepared.
For some, maybe the national average monthly social security benefit of $1,409 a month is enough to get by in retirement. Still, for most of us, that is not enough to maintain any form of a comfortable lifestyle.
I mentioned Americans that are prepared for retirement and ones that are super-prepared. I want to talk about the ones who are super-prepared.
Super-prepared Americans are the ones that can retire whenever they want. They don’t have to work; they choose to. I’m not talking about trust fund babies or lottery winners. I’m talking about Americans who took the necessary steps with their finances and investments to put themselves in a position never to have to worry about social security or even money again.
What all super-prepared Americans have in common is they have all stopped being masters to their money and turned the tables and made their money their servants.
What do I mean by that?
I’m saying that while most Americans work for their money – punching a time clock and trading time for money – super-prepared Americans have put their money to work for them. In the process, they have traded money for time. Now they can choose to pass their time at their discretion – spend time with their families, play 18 holes, and go on an eco vacation.
How have the super-prepared put their money to work for them?
Through the use of passive investments – assets that make money for their investors in their sleep. There are only so many hours in the day, and none of us can work 24 hours, but our money can. Super-prepared Americans know this, and they put their money to work for them by creating multiple passive income streams.
The ideal asset for creating, maintaining, and growing wealth generates cash flow, appreciates over time, and offers significant tax benefits. Commercial real estate (CRE) checks off all the boxes and is ideal for investing passively.
A passive investment in CRE through partnering with experienced pros takes all the guesswork out of CRE investments. By leveraging passive CRE to create multiple streams of income, the super-prepared can retire on their terms.
The partnership structure of most passive CRE investments offers added capital gains tax benefits unavailable with direct investments. It frees you from the hassle of becoming an expert in the asset class. It also frees you from the headaches of acquiring, managing, and disposing of the property yourself – not to mention the high capital costs.
Don’t be one of the 71% worried about the survival of social security. Be one of the super-prepared Americans who can retire early.
Create multiple streams of passive income from an asset class that generates income, appreciates over time, and offers significant tax benefits.
This is the formula for supercharging wealth, and it’s why passive CRE investments are the asset of choice for many super-prepared Americans.