When’s the last time you bought a gallon of milk? In my house (with two kids under the age of 6), we’re buying milk every other day! Have you noticed the pricing of things going up on goods and services you purchase on an ongoing basis? In this month’s Harbor Drive Investor, we’re going to look at CPI, inflation, and how it may affect our decision making in our investments.
Have you ever thought about what your life might look like if you could never reach retirement? How much passive income do you need to have a comfortable retirement? $5k per month? $10k per month? $20k per month? With the prices of everyday goods and services going up, the income you need from your investments in your retirement will absolutely need to be higher than you might think. What about the cost of healthcare? Sure, we can cross our fingers and hope that policy makers can figure out a way to keep our healthcare costs down, but hope is not a strategy. I don’t want to scare you here, but take a look at this chart below that shows per capita US healthcare expenditures between 1970-2019. That’s an alarmingly sharp curve…
I don’t mean to pick on milk here (my kids love milk!), but let’s do the same with milk over the same timeline. In 1970, a gallon of milk cost $1.32. Today, if you want to enjoy a gallon of milk, that will set you back a whopping $3.27 (ask me how I know). That’s a whopping 148% increase! The delicious milk you want to drink in your retirement may only be reserved for those who have invested in cash-flowing, appreciating assets that provide tax benefits. I can go on and on and show you how the prices of everything have gone up and will continue to go up in the future. That’s called inflation. And if you aren’t taking the necessary steps now to protect your future, you may never retire because you won’t be able to afford your lifestyle.
We need to take matters into our own hands. I for one don’t want to be forced to work until the day I die unless I feel like it because I like options. That’s why I choose to focus my investing on assets that produce passive income, and predictable appreciation. The key word here is predictable (i.e. not the wall street casino). Not to mention tax benefits because after all, it’s not about how much you make, it’s about how much you keep!
I don’t want you to be forced to work the rest of your life. I want you to have options so you can work if you want to work, or do the things you want in your retirementbecause you have enough passive income to travel, spend time with your family, go out to a nice dinner, have hobbies, etc.
Our network of investors are taking action by allocating a portion of their investments to private real estate opportunities. We’d love for you to join us on our next deal if the timing is right for you, and our offering fits your investment goals. We are currently working on our next project and are excited to announce that we’ll be launching a new investment opportunity for your consideration shortly. Please keep an eye out for an upcoming email from us to give you all the details and information about how you can participate.
In the meantime,
Happy Investing!
