Can You Retire On $500,000? - YouTube

So check it out. You got $500,000 and you want to know how do I turn this into a

fixed income to come in every month no matter what? Steven Michael Miller is

going to break it down for you today on Limitless Wealth TV. Let's do this.

Hey, friends Steven Michael Miller here. You've got questions and I've got

some answers. We've got a question here. How can I turn $500,000 into a $10,000 a

month residual income. That is a fantastic question. I'm going to dive in.

For those of you that are also watching saying, "hey, I don't have $500,000. Just

keep watching because we're going to tie this into you as well what you can do

right now to start growing your wealth. So I want to take this number here

$500,000. For a lot of people that's a big number. I mean do you

realize that by the age of 65, less than 60% of people even have $25,000

saved in retirement? I mean that's crazy but I want to talk about this

because it's important to understand what $500,000

can do for you in the normal world and what $500,000 can

do for you in the real estate world when applied appropriately. So let's talk

about it, $500,000. What most people will do with that money

is they stick it away, in some long-term annuity that's going to pay you out a let's

call it a 4% dividend right? $500,000 with a

4% dividend, that's $20,000 a year. Now,

let me ask you a question, $500,000 seems like a lot of money to

most of us, just off the top of our heads right? Just really think about it. But if

you have that stuck away and it's producing $20,000 a year,

how many of you want to live on $20,000 a year? I don't know

about you, but I know that $20,000 a year does not cover anything. I

mean I've got seven kids right? Doesn't do anything for me.

That's just that's one of those options that's just not a good option.

This is the reason why people are going back to work at Walmart and Target and

other you know massive store chains because that kind of retirement isn't

cutting it. That doesn't allow them to go travel and see their grandkids. It

doesn't allow them to go travel and see the world for that matter, right? That

doesn't allow them do anything. That doesn't even really pay for groceries. So

let's talk about this. So $500,000, if I was to put that same

amount of money in real estate, what would that do for me?

And specifically you're looking to earn $10,000 from a $500,000

input. So I want to help you understand what's realistic and

what's not here. With $500,000, if you were to go out into the marketplace and

I'm going to focus on the real estate that I know okay?

The real estate that we've been doing for the last decade. If you were taking

that $500,000, the average purchase price on a home is right around a $140,000.

Actually, let's do this. Let's round up okay? Because I just I

like to round up a little bit. So let's say a $150,000.

Well a $150,000 into $500,000 that's going to get you

roughly three homes right? So that's three homes,

with a $50,000 buffer right? So we're going to pull $50,000 over and we're going to

put this into three homes times three homes right here. Three properties times

three okay? That's it. That's a house like my drawing there okay? So we've got a

$150,000 per home times three homes that is $450,000

that we've got now in these properties okay? What

that's going to do for you is first of all, I'm just assuming right now that you're

just buying these cash, okay? We're going to go into some other examples here. But if

you're just buying these cash, these properties are kind of probably to spit

out for you. Somewhere in the realm of let's just

call it $1,100 a piece, okay? So $1,100 times

three. What is that? That's $3,300 per month. Now, as you can

see right now, we're not quite at $10,000 a month are we? No, but

over time what's going to happen is this $3,300, if you're

if you're able to put those back into homes, not only that but if you're

also able to put the growth of these properties back into homes, after a five

year period, you're probably going to be able to a little bit more than double on

what you're currently doing. In other words, instead of just three homes, you're

going to take those three homes and you're going to turn that into six

properties okay? Now, I'm keeping this super simple. If there's a whole lot

more details that we can go into right now, I'm just not going to. But I want to

help you understand what real estate can do, is it actually expands and multiplies

your money over time rather than it being with an annuity. That's just

keeping your principal the exact same and paying you out very, very meager

earnings okay? If you multiply that after five years and you now have six homes

doing the exact same thing, what does that do? Well, that multiplies your income

and all of a sudden, you've got that $3,300 double that, now, you're at $6,600

dollars per month. You double that one more time, now this is over a

ten-year period. This is not get rich clip okay? Over a ten-year

period you double that one more time. That's now $13,200

over a ten-year period, starting with $500,000. I want to

help you understand this first of all, also you're not losing your principal.

That's important to understand. Your now keeping your principal. You're

actually expanding your principal over time and over that ten years, now you've

grown that $500,000 into a $13,000 to $13,200

per month income. Now, that's just if you are buying homes

outright right?And this is just if you're just buying it free

and clear. If you were to actually invest a little bit differently, if you were to

leverage those properties, then you could actually do a little bit differently

right? So, still average purchase price of $150,000, yeah.

Let's do this a little bit differently here as well. So you've got

$500,000 average purchase price of $150,000.

But your total out-of-pocket that you're going to have for most of these homes is

going to be somewhere in a $40,000 range per property

because you're going to get leverage on these properties right? Your leverage. If

you got $500,000 divided by $40,000, so that's 12

properties roughly that you can do, okay? So twelve properties with a $100,000

or with $500,000 as opposed to just three starting off

with. I'm not going to go into all of the detailed math here because this

could drag out into a very, very long, long video. But I want to help you

understand that all of a sudden, if you've got twelve properties that are

working for you upfront and you're able to take those twelve properties and do

more. Right here I'll be able to take those those twelve properties and

multiply that over five years into now 24 properties and so on and so forth.

Even though you have mortgages on them and you're paying your mortgages, that

leverage is going to allow you to expand even more and grow a little bit more

exponentially, than otherwise. And instead of you know retiring with you know

what do we have, we had three, six and then twelve properties, instead of having

just twelve properties, you can see you're starting off with

twelve properties and over the next ten years, you can turn that twelve properties into

a whole lot more properties that are paying you even more. So the question is,

can I turn $500,000 into $10,000 of residual monthly income? Yes, you

absolutely can. It takes a little time, it takes plugging into information

and expertise from someone who knows what they're doing in that arena and

that can help guide you along the way as well. So let's let's dive a little deeper

than into some of these numbers real quick. These twelve homes, I'm going to draw

this up here just a little bit. Twelve properties right? These are each going to

produce for you somewhere between $300- and $500 a month, so

we've got twelve homes. If they're each producing $400 a month,

let's just do the math on that real quick. We've got twelve times $400

that's 4,800 per month.

$4,800 a month and just compare that real quick to the annuity

right? That saved $500,000 in annuity was $20,000.

That's about $1,600 a month. So $1,600

a month already out the gate, were more than triple. We're doing

so much better just with real estate. So is it feasible to take that $500,000

and right out the gate earn $10,000 a month? No, you're going to

have to do some things. You're not to have time on your side

as well. But if over the next five years, okay?

You're able to take that and double it, which is what we kind of went over in

the example beforehand. If you're going to take that and double it, already you're

almost there. Now, you're now after five years rather than after ten,

you're already almost there. But by the way, there's something that I haven't

even talked about. This is just getting homes that market value. If you're just

buying the homes $150,000 a piece. if you were buying those same

homes, but each of those homes had a let's just say call it a 10% equity

position. That 10% equity position, what's 10% of a $150,000?

That's $15,000. So 10% off of on twelve homes for

every two homes you have, that's a potential extra home that you could be

purchasing, The point is all of a sudden, this starts to multiply and feed

into itself and real estate does something that no other investment can.

It does something that annuities can't do, that stocks can't do, that none of

these things can do. First of all it, allows you to leverage

and use your money to the very best possible way you can. It also allows you

to grow exponentially. It allows $1 to go to work for you in one home at the same

time it's working for you in another home. Because I can do a cash out

refinance on one of my homes, pull some of that equity out while I still own the

home ,still cash flow the property, still take advantage of the growth of that

property and put that home into now another property that's going to produce

for me as well, So, that's the power of real estate, doing it the right way. This

is what we've been helping people do for the last decade and this is why

we're so passionate about real estate. Why? it's so amazing. So if you want to

turn $500,000 into a $10,000 monthly

income, you absolutely can do that. It's just going to take a little bit of time and

a lot of know-how. Hey, was this useful for you? Hopefully you loved the answers

that I gave and this was specifically for you. If you hated it, I want you to

comment below and say, never put Steven in a video ever again. Absolutely but if

you loved it or you did give thumbs up... Yeah. because seriously, I'm going to

determine whether I ever bring him on ever again based on what you say. Put

some more comments and more questions we'd love to hear from you. Steven would like

thumbs up. I'd like thumbs down, ultimately it's up to you.