When most people think about retirement, they imagine a time when they can finally relax and enjoy life without worrying about work.
However, one of the most important things you can do for a smooth retirement is to have an emergency fund in place.
In this article, I share why it’s a good idea to have at least two years’ worth of living expenses saved up before you retire.
This post may contain affiliate links; please see our disclaimer for details.
What is an emergency fund, and what is its purpose?
An emergency fund is a savings account that covers unexpected expenses, such as a job loss, medical bills, or major repairs.
The purpose of an emergency fund is to provide financial security in the event of an unforeseen circumstance.
It’s important to note that an emergency fund is not the same as a retirement fund. A retirement fund covers living costs during retirement, while an emergency fund covers unexpected costs before or during retirement.
It can be used during retirement as a hedge if there is a bear market and you want to take less out of your retirement accounts than the normal 4% or whatever rate you typically withdraw each year.
Why is it necessary to have an emergency fund in retirement?
A few reasons why having an emergency fund in retirement is important.
First, it provides security in unforeseen circumstances, such as a job loss or medical emergency.
Second, an emergency fund can help you avoid prematurely tapping into your retirement savings. If you don’t have an emergency fund and experience an unexpected cost, you may be tempted to withdraw money from your retirement account. This can be detrimental to your long-term financial security, as it can reduce the amount of money you have saved for retirement.
Third, an emergency fund can help keep your retirement lifestyle on track. If you have to tap into your retirement savings to cover an unexpected cost, it can set back your retirement plans and cause you to have to make lifestyle changes, such as downsizing your home or cutting back on your travel plans.
How much should you have in your emergency fund?
When it comes to your emergency fund, the general rule of thumb is to have at least two years’ worth of living expenses saved.
This may seem like a lot, but having a cushion in a major financial emergency, like a job loss or unexpected medical bills, is essential. Having a robust emergency fund will help you weather any unexpected storms that come your way.
Of course, everyone’s financial situation is different, so you may need to adjust your savings goals based on your particular circumstances. But saving two years’ worth of living expenses is a good goal.
How to start building your emergency fund
If you don’t have an emergency fund, it’s never too late to start one. Here are a few tips to help you get started:
1. Set a savings goal
Determine how much you need to save based on your unique circumstances. As a general rule of thumb, aim to have at least two years’ worth of living expenses saved.
2. Make saving a priority
Set aside money each month to contribute to your emergency fund. If possible, automate your savings so that the money is automatically transferred to your account each month.
3. Keep your emergency fund in a separate account
This will help you avoid dipping into your savings for non-emergency expenses.
What should you do if you’re about to retire and don’t have an emergency fund?
If you’re close to retirement and don’t have an emergency fund, building one as soon as possible is essential. You might not be able to reach your two-year savings goal, but every little bit will help.
In addition, if you’re about to retire and don’t have an emergency fund, it’s crucial to have the plan to cover unexpected costs. This might include downsizing your home, cutting your travel plans, or working part-time during retirement.
Tips for maintaining your emergency fund once it’s established
So, you have your emergency fund and are still years away from retirement. Congratulations! Here are a few tips to help you keep your emergency fund in good shape:
1. Review your savings goals regularly
As your circumstances change, so too should your savings goals. Review your emergency fund annually to make sure you’re still on track. Life has a way of throwing curveballs, so it’s essential to be prepared for the unexpected.
2. Make regular contributions to your emergency fund
Even if you have enough saved to cover two years of living expenses, you must continue contributing to your emergency fund regularly. This will help you keep up with inflation and give you a cushion in an unexpected financial emergency.
3. Invest your emergency fund wisely
Once you’ve built up your emergency fund, it’s crucial to invest the money wisely so it can grow over time. A high-yield savings account or short-term certificate of deposit (CD) is a good option for most people.
A great place to get started with your savings account isCIT Bank. They offer very competitive saving rates with no monthly maintenance fees.
With their Saving Connect Account, you can earn 12x the national average! There are no ATM fees, and you have the convenience of online banking.
If you don’t mind a negligible risk, you could also consider investing your emergency fund in a stock market index fund. This will give you the potential to earn a higher return, but there’s also the possibility of losing money.
The bottom line
There’s no right or wrong answer regarding how much you should have in your emergency fund. It’s always a good idea to have at least a few months’ worths of living expenses saved, but some experts recommend aiming for two years’ worth.
Building up a larger emergency fund is an excellent way to prepare for the unexpected if you still have many years ahead of you before retirement. And if you’re close to retirement and don’t have an emergency fund, building one as soon as possible is essential.
Whatever your situation, it’s always a good idea to have a plan in place for how you’ll cover unexpected costs. This will help you weather financial storms and keep your retirement plans on track.
Disclaimer:
We hope the information in this article provides valuable insights to every reader but we, the Biesingers, are not financial advisors. When making your personal finance decisions, research multiple sources and/or receive advice from a licensed professional. As always, we wish you the best in your pursuit of financial independence!
When it comes to getting professional financial advice, many people believe that you simply can’t go wrong with hiring a financial advisor. However, many people don’t know that you may not need a financial advisor at all! By following a few simple tips, you may be able to manage your finances perfectly well without anyone else’s help.
This post may contain affiliate links; please see our disclaimer for details.
You’ll get charged no matter if you make money or not
It’s no secret that financial advisors often charge hefty fees for their services. These fees are typically determined by the amount of money you invest. They are not based on the profits they generate.
In other words, you will still be charged for their services even if they misuse the funds you entrust them with.
This system increases your investment strategy’s unneeded risk and costs. It also provides little incentive for a financial advisor to provide results.
Even if they will get paid more if they can increase your wealth, they still receive compensation in the end. As a result, it’s important to carefully consider whether or not working with a financial advisor is right for you.
Investing wisely in the long-term is better
While there’s no doubt that financial advisors have access to a wealth of information and resources, the truth is that you can do just as well – if not better – by investing in low cost index funds for the long haul.
You could invest in individual companies, but you must take the time to do your own research and invest long-term. You can find out which companies will likely succeed in the future and invest in them accordingly.
We personally love investing in the Total Market Index Fund and the S&P 500. They which have a proven track record over the long term.
What’s more, by investing by yourself, you’ll avoid the fees charged by financial advisors. This will allow you to keep more of the profits you generate, giving you a greater return on investment.
M1 Finance is a great investment opportunity with its robust yet simple app. There are ZERO commissions or account management fees.
Deposits $1,000 or more into your M1 Invest account within two weeks of signing up and get a cash bonus of $30-$500 to that account.
It is not just a trading stock brokerage account but also offers an IRA option that allows you to invest in your retirement.
We highly recommend using M1 Finance to open a brokerage or retirement account! M1 Finance can undoubtedly help you on your financial independence journey.
You might not get the personalized attention you need
If you’re working with a large financial institution, it’s essential to remember that you’re likely just one of many clients they’re managing.
As a result, you may not receive the personalized attention you need to make the best decisions for your financial future.
On the other hand, if you’re working with a smaller firm or an independent financial advisor, you’re more likely to get the one-on-one attention you deserve.
This way, you can be sure that your investment strategy is tailored to your unique needs and goals.
A financial advisor rarely outperforms the market
One of the financial advisors’ biggest selling points is that they can outperform the market. However, this claim is often exaggerated.
In reality, it’s very difficult – if not impossible – to consistently beat the market, even for experienced professionals.
What’s more, even if a financial advisor does manage to outperform the market in a given year, there’s no guarantee that they’ll be able to do so again in the future. As such, it’s essential to be realistic about the capabilities of financial advisors.
Hopefully, you’re sitting down for this one because it may come as a shock: most financial advisors are actually learning as they go.
That’s right – even though they may have years of experience, many financial advisors are still trying to figure out the best way to manage their clients’ money.
With this in mind, it’s important to remember that you may be able to get just as good – if not better – results by managing your own finances.
After all, if your financial advisor is still learning, why not learn alongside them?
The amount of attention they give you depends on how much you invest
The more money you have to invest, the more attention you’re likely to receive from a financial advisor. That’s because financial advisors typically earn more commissions when they manage larger sums of money.
As a result, if you have a small amount of money to invest, you may find that your financial advisor is less attentive than you’d like.
If you’re considering working with a financial advisor, this is something to keep in mind.
You may be able to get the same services for less
Many financial institutions offer their clients various services, including investment management, retirement planning, and tax preparation. However, these services often come at a premium price.
Fortunately, there are several ways to get the same services for less. For example, you can use online tools and resources to manage your finances or work with an independent financial advisor who charges lower fees.
When do you actually need a financial advisor?
You might need a financial advisor if you have more assets than the average person or your situation involves complicated tax issues.
Other times when you might need an advisor include if you’re going through a major life event like getting married, having a baby, or buying a house.
If you’re not sure whether or not you need a financial advisor, the best thing to do is ask yourself whether you have the time, knowledge, and interest to manage your finances on your own. If not, then working with a financial advisor may be your best option.
The Bottom line
Working with a financial advisor can be beneficial in some situations, but it’s essential to understand the limitations of these professionals. In many cases, you may be better off managing your finances on your own.
The average person doesn’t need a financial advisor. You probably don’t have so much money that you can’t keep track of it yourself, and you’re probably not in a complicated enough financial situation to warrant the help of a professional.
DIYing your finances can be a great way to save money and better understand your financial situation. So, unless you have a complicated financial situation or more money than you know what to do with, you’re probably better off without a financial advisor. 🙂
Disclaimer:
We hope the information in this article provides valuable insights to every reader but we, the Biesingers, are not financial advisors. When making your personal finance decisions, research multiple sources and/or receive advice from a licensed professional. As always, we wish you the best in your pursuit of financial independence!
This post may contain affiliate links; please see our disclaimer for details.
As with this image, you will need to tear back certain parts of your life or make changes to find Financial Freedom.
What does financial freedom mean to you? Is it being able to afford whatever you want without having to worry about money? Or is it something else entirely?
In reality, financial freedom is different for everyone. For some, it might mean living a comfortable life without any debt. For others, it might mean being able to retire early and travel the world.
The important thing is that financial freedom means something different to each individual and everyone can achieve it.
So, how do you go about achieving financial freedom? Read on to find out!
There are many different paths to financial freedom. Some people achieve it through hard work and disciplined saving, while others come into money through investing or inheritances. No matter how you reach financial freedom, the important thing is that you have a plan and you stick to it.
Can you achieve financial freedom?
The short answer is yes! Financial freedom is possible for almost everyone, no matter your current situation.
So whether you’re struggling to make ends meet or already comfortable, you can always make changes to improve your financial situation. It might not be easy, but it is possible.
The key to achieving financial freedom is to have a plan and to be disciplined. You need to know your goals and what you’re willing to sacrifice to reach them.
For some people, that might mean cutting back on unnecessary expenses and saving as much money as possible. For others, it might mean taking on additional work or investing in high-yield investments.
For us, the Biesingers, Financial Freedom is living on our terms. Having enough money in savings and investments that we can pivot or change what we do for work or stop working entirely. We believe that flexibility allows us more opportunities to feel peace and happiness.
Let’s turn our attention to how you can obtain financial independence:
Understand your current financial situation
When it comes to financial freedom, the first step is always the hardest. But the journey becomes much easier once you take that first step.
The first step is to take stock of your financial situation. This means listing all of your debts and savings.
Once you have a clear picture of what you owe and have saved up, you can develop a plan to pay off your debts and grow your savings.
One strategy for reducing debt is first to pay the debt with the highest interest rate or try the Debt Snowball Method. Another method for growing your savings is setting up automatic transfers from your checking account to your monthly savings account.
Have clear goals that you can achieve
The second step to achieving financial freedom is to set clear goals. This means knowing what you want to achieve and when you want to achieve it.
For example, do you want to be debt-free in five years? Do you want to retire at age 60?
Perhaps what you what to achieve is financial independence and retire early. Whatever your goals may be, make sure that they are realistic and that you have a plan for achieving them.
To help you understand how much you may need for retirement, you can check out our other blog posts about the 4% rule or the 25x rule.
Be disciplined with your spending
The third step to achieving financial freedom is to be disciplined with your spending. This means knowing what you can and cannot afford and sticking to a budget.
It can be challenging to stick to a budget, but it is possible.
Many helpful resources are available, such as online budget calculators and financial planning apps.
You can’t just be disciplined regarding spending; you need to track every cent you spend. This means knowing where your money is going and ensuring you are not spending more than you can afford.
You can’t get a good picture of your financial situation if you don’t know where your money is going.
Spend far less money than you earn
The goal is to spend far less than you earn to save as much money as possible. This can be difficult, but it is possible.
There are many ways to save money, such as couponing, setting a budget, and cooking at home.
You also need to ensure you are not spending money on unnecessary things. For example, don’t buy anything on credit that you don’t have to.
The interest on credit card debt can quickly add up and make it difficult to get out of debt.
Have an emergency fund
Life can always throw you a curveball, no matter how well you plan. That’s why it’s crucial to have an emergency fund to cover unexpected expenses. This fund should be used for medical bills, car repairs, or job loss.
Your emergency fund is there to protect you from financial ruin, so don’t dip into it unless it is necessary.
I created another article sharing on everything you need to know about Emergency Funds.
Invest in yourself to become financially independent
It can’t be stressed enough that you must invest in yourself if you want to become financially independent. You should consider investing in college or learning a trade to earn more money.
You’ll never succeed in becoming financially independent or retiring early if you don’t have a skill that enables you to earn more money than the average person.
An excellent way to increase your PASSIVE income is by renting out extra space! With NEIGHBOR, you can easily rent out extra space, such as your garage, self-storage unit, rooms, etc.
From neighbor.com
Start your own business
One of the best ways to achieve financial freedom is to start your own business. This can be a difficult and risky endeavor, but it can also be very rewarding.
When you own your own business, you control your financial destiny. This means you can earn a lot of money if your business succeeds.
Of course, starting your own business could be something you do on the side. It takes a lot of hard work, dedication, and some risk-taking. But if you are up for the challenge, it can be a great way to achieve financial freedom.
One of the most crucial steps: Paying off debt
Carrying around debt is like having a weight tied around your neck. It can be incredibly stressful and difficult to achieve your financial goals.
That’s why paying off your debt is one of the most important steps to becoming financially free.
There are a few different ways to pay off debt, such as using a debt consolidation loan or making extra payments on your debts.
Whichever method you choose, ensure you are dedicated to getting out of debt as quickly as possible.
Every person reading this can become financially independent
It’s true; every single person reading this can become financially independent. Of course, it will take work, dedication, and discipline, but it isn’t as complicated as you think.
If you are willing to put in the effort, you can achieve financial freedom. It is not an impossible dream; it is within your reach.
The difference between those who achieve financial independence and those who don’t is simply a matter of choice. You’ve got this; we’re rooting for you!
Disclaimer:
We hope the information in this article provides valuable insights to every reader but we, the Biesingers, are not financial advisors. When making your personal finance decisions, research multiple sources and/or receive advice from a licensed professional. As always, we wish you the best in your pursuit of financial independence!
If you are nearing retirement and are looking for good and affordable health insurance, you have come to the right place.
In this blog post, we will discuss some of the best health insurance options for those in retirement.
We will also provide tips on how to find affordable health insurance coverage.
So, whether you are just starting to think about retirement or are already retired, read on for information on health insurance options for older adults.
This post may contain affiliate links; please see our disclaimer for details.
This post may contain affiliate links; please see our disclaimer for details.
COBRA
According to the Consolidated Omnibus Budget Reconciliation Act, or COBRA, dependents of employees are permitted to continue receiving group coverage under their former employer’s health insurance plan.
This could be an excellent choice for health insurance for an early retiree if they retire 18 months before they are eligible for Medicare.
COBRA is only valid for 18 months; however, coverage may be extended in certain circumstances. You can preserve your current insurance through COBRA, which means you won’t need to worry about your coverage or network changing.
It’s crucial to remember that only businesses with at least 20 employees are required to comply with COBRA, and that it does not apply to government employers or churches.
COBRA can be an excellent option for those who need a bridge between their old employer’s health plan and Medicare, but it’s essential to understand the program’s limitations.
Get covered under your spouse’s plan at work
If you’re married and your spouse is still employed, you may be able to enroll in their health insurance plan through their company. Many companies offer this as a benefit to employees, similar to retiree benefits.
Sometimes, the company will even pay a portion of the premium, making the coverage more reasonable. However, if your spouse includes more people in their plan, their premium will go up.
Before agreeing to your spouse’s proposal, consider any financial repercussions. Will your income be sufficient to cover the additional cost?
If not, you may need to look for other options. Ultimately, the decision comes down to what makes the most financial sense for you and your family.
My wife’s current job offers health insurance even for part-time employees. Look around, and you might be surprised at what is available.
Take a look at the off-exchange marketplace
If you’re shopping for health insurance, you may come across the term “off-exchange.” Off-exchange plans are private health insurance plans that aren’t offered on the government’s Health Insurance Marketplace.
Instead, you purchase these plans directly from an insurance company or broker. One advantage of off-exchange plans is that you may have more plan options to choose from.
However, these plans may also be more expensive because you’re not eligible for the same subsidies and tax credits available through the marketplace.
If you’re considering an off-exchange plan, compare the costs and coverage options carefully to find the best fit for your needs.
Something else to consider about the marketplace is that you can only enroll during the open enrollment period.
This period typically runs from November to December, but it may be different in your state. If you miss the deadline, you’ll have to wait until the next open enrollment period to sign up for coverage.
Many employers offer retirement benefits to workers
Many firms voluntarily provide retirees with health insurance policies that resemble the ones they received while working. Most employers subsidize between 70% and 80% of their active employees’ healthcare premiums to make health insurance accessible to their workers.
However, an employer’s contribution to a retiree’s plan is neither guaranteed nor required, so retirees can be obliged to pay the full amount of their premium.
The average yearly premium for an employer-sponsored plan before employer subsidies is $7,740 for single coverage and $22,220 for family coverage.
Voluntarily providing health insurance policies for retirees is beneficial for both the employer and the employee. It strengthens the bond between them, tempting the employee to stay with the firm for longer.
In addition, it allows the employer to have a healthier workforce since inadequate health care is linked with poor health outcomes.
From the employee’s perspective, health insurance gives them peace of mind knowing they will be taken care of in retirement.
Access to health care is essential, and retiree health insurance policies help to ensure that retirees can continue to receive the care they need.
Get health insurance through membership organizations
Organizations can offer their members lower insurance rates in a variety of ways. One common method is to negotiate better prices with insurance providers.
By pooling their resources, organizations can often secure discounts that would not be available to individual consumers.
Another way to reduce costs is by dividing care expenses among members. In association-based health plans, for example, participants share the cost of their care, which helps to keep premiums low.
Similarly, health-sharing schemes allow members to pool resources and pay for care costs monthly. As a result, both of these approaches can help to lower your monthly insurance costs.
If you’re looking for affordable health insurance, membership organizations may be an excellent option. Some health insurance organizations include professional associations, trade unions, and religious groups. By joining one of these organizations, you may be able to get access to lower-cost health insurance.
Get a short-term health insurance plan
Short-term health insurance plans are temporary policies that last for a fixed period, typically between 30 and 364 days.
These plans are not required to provide the same level of coverage as major medical plans, which means they often have lower premiums.
Short-term health insurance plans can be a good option if you’re between jobs or waiting for your employer-sponsored health insurance to start.
They can also be a good choice if you’re not eligible for Medicare and are looking for an alternative to COBRA.
Keep in mind that short-term health insurance plans do not provide the same level of coverage as major medical plans. They typically have higher deductibles, copayments, and coinsurance and don’t cover pre-existing conditions.
If you’re healthy and don’t have any pre-existing medical conditions, a short-term health insurance plan can be a good option for you. Just make sure to compare your options carefully before choosing a plan.
Get a part-time job with health insurance benefits
If you’re looking for affordable health insurance, one option is getting a part-time job offering health insurance benefits. Many employers offer health insurance as an employee benefit, so working part-time can be a good way to get coverage.
You may not want to work being so close to retirement, but consider that getting a part-time job specifically for health insurance benefits can save you a lot of money. Even if you only work a few hours per week, you may be able to get health insurance that covers most of your medical expenses.
You can always find a part-time job in your profession to avoid taking a job that you’d really rather not have. Even though there’s nothing wrong with taking on a fast food job in retirement, you’ll probably feel better about yourself if you can find a job that’s in your field.
Consider a high-deductible health plan
A high-deductible health plan (HDHP) is a type of health insurance with a lower monthly premium but a higher deductible. You’ll have to pay more out of pocket for your care before your insurance coverage kicks in.
HDHPs are often paired with a health savings account (HSA). An HSA is tax-advantaged savings account that you can use to pay for your medical expenses.
If you have an HDHP, you may be able to use your HSA to pay for your deductible, copayments, and coinsurance. This can help you save money on your healthcare costs.
HDHPs are a good option for healthy people who don’t need much medical care. If you have an HSA, you can use it to cover your out-of-pocket costs, and any money you don’t use can be rolled over into the next year.
Move abroad to a country with lower healthcare costs
If you’re looking for a way to save money on health insurance, one option to consider is moving to a country with lower healthcare costs. In many countries, the cost of healthcare is much lower than it is in the United States.
For example, Thailand can get basic health insurance for about $50 per month. In Mexico, you can find health insurance plans that cost as little as $30 per month. And in India, many affordable health insurance plans are available.
Of course, moving to another country is a big decision. But it’s worth considering if you’re looking for a way to save money on healthcare.
You may be able to find a country that has both lower healthcare costs and a lower cost of living, which can help you stretch your retirement savings further.
Even if you have to pay out of pocket for your healthcare expenses while living abroad, you may still be able to save money. In many countries, the cost of healthcare is much lower than it is in the United States. So, you may get the same level of care for less money.
Consider a health-sharing plan
For people of faith, there are a growing number of health insurance options that consider their religious beliefs. These faith-based programs typically involve sharing the costs of expenses with other participants and may require members to demonstrate their religious affiliation or pay a monthly contribution.
While the monthly payment is usually less than traditional health insurance premiums, the coverage is often far less extensive. Members may have to pay for some medical expenses out of pocket.
Some faith-based plans may not cover pre-existing conditions or long-term medication costs, which could be problematic for people with chronic illnesses.
As such, it’s essential to carefully review the coverage options before enrolling in any faith-based health insurance plan.
Faith-based health insurance options are available, and the costs and coverage vary depending on the plan. Some popular options include Medi-Share, Liberty HealthShare, and Samaritan Ministries.
Many self-employed or early retirees find that faith-based health-sharing plans offer them a more affordable option for health insurance.
While this is an option for many, there are plenty of risks involved, and it’s best to explore your options before making a decision.
In Conclusion
There are several health insurance options available for early retirees. The best option for you will depend on your individual needs and circumstances.
However, some options you may want to consider include HDHPs, health sharing plans, and moving to a country with lower healthcare costs.
No matter what option you choose, it’s essential to carefully review the coverage and costs before enrolling in any plan. This will help ensure you’re getting the coverage you need at a price you can afford.
If you’re planning on retiring early, the best thing you can do is start planning and saving now. The sooner you start, the more time you’ll have to find the best health insurance solution for your needs.
Disclaimer:
We hope the information in this article provides valuable insights to every reader but we, the Biesingers, are not financial advisors. When making your personal finance decisions, research multiple sources and/or receive advice from a licensed professional. As always, we wish you the best in your pursuit of financial independence!
It’s no secret that Utah is a great place to invest in real estate. In fact, for many years now, it has been consistently ranked as one of the top states in the nation for rental property returns. So if you’re considering investing in Utah real estate, rentals are the way to go! Let’s jump into 11 reasons why.
This post may contain affiliate links; please see our disclaimer for details.
Salt Lake City During the Winter
1. There’s a high demand for rentals in Utah
The number one reason to invest in Utah rentals is their high demand.
The state’s population is growing rapidly, and there’s not enough housing to meet the new residents’ needs.
This is especially true in Salt Lake City, where the population has grown by leaps and bounds in recent years.
As a result, there’s a very high demand for rental properties in Utah, which means you can charge top dollar for your units.
2. Rental properties in Utah appreciate at a rapid rate
Another great reason to invest in Utah rental properties is that they appreciate them at a very rapid rate. This is due to the state’s strong economy and growing population.
Utah has been one of the top-performing states in terms of real estate appreciation for several years.
As a result, your rental property will likely increase in value rapidly, providing you with a nice return on your investment.
3. Utah has very favorable tax laws for investors
Taxes are always a consideration when it comes to investing in rental properties, and Utah has some of the most favorable tax laws for investors in the country.
If you structure your investment properly, you can pay very little taxes on your Utah rental property. This is another reason why rentals are an excellent investment in the state.
4. Rental properties provide consistent monthly income
One of the best things about investing in rental properties is that they provide a consistent monthly income. This is money you can count on coming in every month, which can help cover the mortgage on your property and provide you with a nice profit.
Many people get into the rental business because of the monthly payments, but it’s important to remember that other expenses come along with being a landlord.
These include repairs, upkeep, and vacancy rates. Despite these expenses, rentals can still be a very profitable investment.
5. You can leverage your investment with borrowed money
Leveraging your investment can be a great way to increase your return without putting any more money down.
When you borrow money to purchase a rental property, you’re essentially using other people’s money to finance your investment. This can help you to buy more rental properties and grow your portfolio at a much faster pace.
6. Outsource the management of your rental properties
If you don’t want to deal with the day-to-day management of your rental properties, you can always outsource that task to a property management company.
These companies will cover all the details for you, from finding tenants and collecting rent to dealing with repairs and maintenance.
This frees your time to focus on other aspects of your investment portfolio.
7. You can buy property in a wide variety of price ranges
Investing in rental properties doesn’t have to break the bank. You can find properties in various price ranges, from small condos to large single-family homes.
This means that you can find a property within your budget that will give you a good investment return.
Although many years back, our first property was a 1970 townhome and cost $100,000. Of course, the market has gone up, but there are still good deals.
Our First Rental Property
8. Potential for growth in the Utah rental market
The Utah rental market is still in its early stages, meaning there’s a lot of growth potential. As the state’s population grows, so will the demand for rental properties.
This means that your investment is likely to appreciate at a very rapid pace.
9. It’s easy to find quality tenants in Utah
Many of the renters in Utah are Mormons, which means that they’re generally very reliable tenants. They’re also less likely to cause damage to your property or fail to pay rent on time.
This makes it easier to find quality tenants, which can help to minimize vacancy rates and maximize your profits.
10. Utah is a great place to raise a family
It’s hard to deny that Utah is a great place to raise a family. The state has a low cost of living, great schools, and plenty of outdoor activities to keep everyone busy. This makes it an attractive place for families, which can help drive up demand for rental properties.
Many people go to Utah to start a family; they’ll need to rent a place to live before they can buy a house. This provides a great opportunity for investors looking to cash in on the state’s strong rental market.
11. It’s a great place to retire
Utah is quickly becoming a popular retirement destination, and those retirees need a place to live. This creates an excellent opportunity for investors to purchase rental properties that can be leased to these retirees.
So not only will you be providing them with a place to live, but you’ll also be able to collect a nice monthly rental income.
Conclusion – Consider Utah for your Rentals
Investing in rentals in Utah is a no-brainer when you get to it. If this is the business you’re considering getting into, you’ll find plenty of reasons to do so.
With a strong rental market, great potential for growth, and plenty of quality tenants, you’ll be in a great position to make some serious profits.
Now is the perfect time to get started in the Utah rental market, so don’t wait any longer.
Start looking for properties that fit your budget and reap the rewards of being a landlord in this great state.
Disclaimer:
We hope the information in this article provides valuable insights to every reader but we, the Biesingers, are not financial advisors. When making your personal finance decisions, research multiple sources and/or receive advice from a licensed professional. As always, we wish you the best in your pursuit of financial independence!
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