IRA and Savings We will start 2025 on a note that has nothing to do with Real Estate and everything to do with you! I am sick and tired of talking with people who are getting older and are running out of money! We can age out of anything, and it could happen to you. Many of you will lose the drive and desire to make more money, so you better start saving now if you don’t think you are on the right track for a solid retirement! Please do not think this is enough to retire on, but it will give you peace of mind if you do this! Key Assumptions: Annual Return: 7% Annual Contribution: $7,000 until age 50, then $8,000 until age 70. (this number will likely go up, but we will use what we have today.) Calculations: Here’s a breakdown for each starting age, showing the contributions and the final amount at age 70: Starting at 25 – Approximate Total at 70: $1,300,000 Starting at 30 – Approximate Total at 70: $950,000 Starting at 35 – Approximate Total at 70: $700,000 Starting at 40 – Approximate Total at 70: $500,000 Starting at 45 – Approximate Total at 70: $350,000 Starting at 50 – Approximate Total at 70: $400,000 Starting at 55 – Approximate Total at 70: $240,000 Starting at 60 – Approximate Total at 70: $125,000 Important Notes: These are estimates: The actual returns in the stock market will vary year to year. A consistent 7% return is unlikely. Some years will be higher, and some will be lower or negative. Taxes: Traditional IRA contributions may be tax-deductible, but withdrawals in Retirement will be taxed as ordinary income. Food for thought: There is always talk about Social Security and whether it will be there in the end. Imagine that Social Security contributions were instead deposited into a private account earning 6% interest. Here are the key findings: This will make you sick! I assumed I had begun maxing out my SSI contributions yearly since 1988. I would contribute 15% of my salary to Social Security up to the annual cap. This includes both my 7.5% contribution and my employer’s matching 7.5% contribution. I am assuming that I would make 6% annually on the amount I put into Social Security. Results: Value Today (2025): If the contributions had been invested in this manner, the account balance today would be approximately $3,461,725. Value in (2031): Assuming continued contributions at the Social Security cap (which increases by 3% annually) for the next six years, the account would grow to approximately $5,101,109 by age 65. Lifetime Income: At age 65, if I continue to earn a 6% annual return, I would be able to spend approximately $306,067 per year in interest alone for the rest of my life, while preserving the full principal amount. Legacy: This would allow me to leave the full $5,101,109 to my heirs. These numbers demonstrate the potential of compounding interest over time. The government is NOT going to support you. Imagine if you put more than $7000 a year into investments. You will have a lot of money, a secure retirement, and money to leave your kids. There are many things to invest in, and I am not an investment advisor, but start small and eventually get into investing in what they call Real Estate. I hope you all had a wonderful holiday season, and now it is time to grind! Let’s get to work and make 2025 the best year ever!!! I’m here to support you every step of the way; whether you have questions about a loan scenario, need help with a client, or want to brainstorm ideas, I’m just a call, text, or email me anytime. 📞 Cell: 661-714-6258 TEXT: 661-714-6258 📞 Office: 661-260-2970 ext. 2222 📞 Direct Line: 661-291-2222 📧 Email: Mike@AugustaFinancial.com Let’s make 2025 your best year yet! Together, we can achieve great things. But wait, there’s more… Interest Rates: Interest rates are a tad worse today, and I have had a rough go for a bit now. The Economic data released today was not helpful, but there is more tomorrow! We offer 12-day escrows for pre-approved buyers - Conventional/FHA/Jumbo/Bridge loans. We provide loans in all states, so call me with anything you need. Government Loans (FHA/VA/USDA) are in the 6s. Conventional loans up to $806,500 are in the 6s and 7s. High Balance Loans from $806,501 to $1,209,750 are also in the 7’s. Jumbo loans above $1,209,750 are in the 7’s. Bank statement loans are available with 10% down again, with larger down payments in the 7’s. Profit and Loss Statement loans require 20% down - no bank statements needed, only a profit and loss statement! 0 down loans are available in the high 6s, with a minimum credit score of 620, up to $1,300,000. Private Money lenders offer Hard Money Loans with 35% down. No Ratio Loans require 30% down. DSCR (Debt Service Coverage Ratio) loans are available with as little as 15% down. Bridge Loans typically have an interest rate of 7.99% with limited fees, helping you get where you need to go! 3/2/1 Buydowns, 2/1 Buydowns, and 1/0 Buydowns are available at great starting rates! Please note that interest rates are subject to change without notice, and the information above reflects LA County Loan Limits. **Good News for Condos:** Nothing new to report. **Bad News for Condos:** Nothing new today. For all other issues involving condos, please check MikeMeena.com. I will post updates here, but all the information on the naughty list is available on my website. Just go there and click about to find our most updated list. Let me know if you hear anything new about condos or townhouses. I am available all day and night every day of my life! Let me know if you need anything, and I am happy to answer all of your questions! 📞 Cell: 661-714-6258 TEXT: 661-714-6258 📞 Office: 661-260-2970 ext. 2222 📞 Direct Line: 661-291-2222 📧 Email: Mike@AugustaFinancial.com Have a great day, and an even better tomorrow! Please call me when you have a client who needs to borrow! Mike Meena President | Loan Officer Click to Call or Text: (661) 714-6258 This entry has 0 replies Comments are closed.
