[Podcast] Securing financial freedom in uncertain times – Strategies for Success Part 2 With Ken Raiss

In a world of economic uncertainty, it's easy to feel like achieving financial freedom is impossible.

In today's show, Ken Raiss and I answer a number of your questions about how, despite all the unknowns ahead, property investors can achieve the end game of financial independence.

You’ll hear that although the journey may not be easy, with careful and thoughtful planning, you can put yourself in the best possible situation and start achieving your financial goals.

I know that many of our clients at Metropole have built substantial property portfolios that are giving them the sort of options in their lives they never thought possible, so I hope by the end of today’s show you will have more clarity and direction for your investments in the current interesting times.

Questions and Answers about Success Strategies

Today’s podcast is one of our popular Q&A podcasts where we answer your questions and this is a follow-on from our last podcast, where we just couldn't get through all the questions.

We get lots of questions left on the Property Update website and emailed, and for this series of 2 podcasts, I’ve selected a group of questions that relate to the end game – building a property portfolio that will give you choices in life,

If you didn’t catch our last podcast, that doesn’t matter – you can listen to this one first, but you really should find it on your podcast App because we answered the following questions:-

• With so much uncertainty between now and when I plan to retire, how do I formulate a strategic property plan?
• How many properties will I need to retire if I want a passive income of $150,000 per annum after tax?
• I don’t want to wait 20 or 30 years to be able to live off my property portfolio. Is there any advice you can give for me to speed this up?

So on to this week’s questions:

1. The first question was left by Margaret…

At what stage do I revert to principal and interest payments on my mortgages and start to retire debt?

• Learn and educate.
• Build an asset base.
  • To do that, you need to leverage and gear.
• Then you can begin transitioning to the next stage.

2. Arnold asks….
   I am getting close to retirement age. Should I sell an investment property to pay off some of my home mortgage debt and improve the cash flow on my other investment properties?

We have to realize that we’re living a lot longer than we ever have been.

A person that’s 60 and in good health will likely live into their 90s.

We still need asset appreciation in retirement, and it needs to be a mix of income-producing assets and growth assets on a case-by-case basis.

That’s why you need a strategic plan.

3. Darren asks…
   I know I’ve left my run late. I’m now in my 50s – is it too late to build wealth through property?

No – but you can’t afford to get it wrong.

The longer you leave it, the more costly the mistakes get.

Risk minimization strategies:

• Putting a financial buffer in place.
• Purchasing properties in the most tax-effective manner and in the correct structures.
• Income protection, life insurance, and landlord’s insurance
• Estate planning
• Treating investments like a business and reviewing portfolios with a property strategist

4. In retirement, would I be better off owning a $5 million property portfolio with $2.5 million in debt, or should I own a $2.5 million portfolio with no debt?
   1. The larger portfolio will give you the benefit of leverage as long as you can manage the cash flow.
   2. You will eventually need to pay down your debt, but in the future, your $2.5 million dollar debt will not be worth as much due to inflation.
5. I have an underperforming property. Is it a good idea to sell it? How do I know I will be able to do better with my money?
   1. Why is it underperforming? Is it the time in cycle, location, or property?
   2. Is there anything you can do to improve it?
   3. Do the sums – there is a cost to selling, including CGT.
   4. How do you know you’ll do better? get a good team around you and buy as part of a plan /process – not emotionally

Links and Resources:

Ken Raiss, director Metropole Wealth Advisory

Have a chat with Ken Raiss to ensure you have the correct asset protection strategies in place – click here

Join Ken Raiss and Michael Yardney at Wealth Retreat 2023 – find out more here

In turbulent times like we’re experiencing why not get the team at Metropole on your side to give you holistic property and wealth advice– find out more here

Why not get your bundle of E-books and resources as my gift for subscribing to this podcast   www.PodcastBonus.com.au

Some of our favourite quotes from the show:

“I don’t mind passing on debt with associated assets to the next generation, but you’ve got to be able to service the debt.” –  Michael Yardney

“You really need to build an asset base and keep it there, not eat it all away.” – Michael Yardney

“Have a plan. Know what you’re doing. Don’t do things emotionally. Then you’re likely to perform better.” – Michael Yardney

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