The Impact of MN Real Estate Ownership On Your Net Worth

If we are measuring wealth by net worth, in 2001, the median net worth of a renter is $4800. Conversely for the same time period, the median net worth of a homeowner is $171,700.

If we are to take this one more step and measure the median net worth of an investor owning 2 - 4 properties, their median net worth is $450,000.

Unfortunately, it is highly unlikely that your job will create enough income for you to set aside a manageable percentage of it and, at an average rate of interest, still achieve true financial wealth.

Stop and do the math!

You may be shocked at how little income your current savings and retirement plan will provide for you at retirement...

Less than 1% of all Americans make enough money at their job to become financially wealthy. And these tend to be highly paid athletes, successful actors or musicians, some executives and a few small business owners.

The true trap is, the more money we make, the more financially secure we feel, and the more we spend. Prosperity gives a false sense of security. Meanwhile, no preparations for retirement are made.

In the good old days, someone would work for their company their whole life, and their company's pension plan would take care of them until they died.

But with increased mergers and acquisitions, companies or people began purchasing other companies, solely based on the enormous monies stored for pension plans. The new owner would use that money for expansion or other acquisitions, instead of for the employees pension. Slowly over time, pension funds were spent in pension plans disappeared.

Social Security was supposed to be the answer to this problem, putting the previous generations issues squarely in our hands...

However, we now know that as the baby boomers retire, and begin taking their mandatory withdrawals from their stocks - that it is the population after the boomers, that will be paying for their retirement. With that the problems are now dumped on a new generation of taxpayers.

I do not choose to rely on Social Security to pay for my retirement, and even if it does pay, certainly not enough for me to live comfortably. Investing in Minnesota real estate has become one of the most popular ways to use those burdens for those who can qualify and afford it, and who have the patience and persistence to invest.