Traditional Financial Planning's View of RE Investing

[Brady Mullen]

I couldn't believe I read this.

I was in the magazine section of Walmart while my wife was looking for craft materials for her kindergarten students.

I was drawn to "The Essential Retirement Guide" (from Centennial Media in 2022) where the cover article wrote about several financial planning tenants.

It addressed how to estimate how much income you'd need in retirement, how much money you'd need to reliably provide that income, how to structure your portfolio to balance out risks, etc.

The paragraph before the final summary read as follows (I took a picture and think of it often):

"Other assets in investor portfolios can also influence asset allocation. For instance, if you have a steady stream of income coming in from a rental property you own, you might be able to be more aggressive with your investments for a longer period of time.”

What I find completely perplexing is how it positioned a "steady stream of income" from a rental property as something you would be lucky to have. As if you can't do that intentionally.

I will give them credit for mentioning it at all, of course, which is often better than you'll get in many other financial publications. But it was like a concession, an afterthought.

By the way, being "able to be more aggressive with your investments for a longer period of time" is no small thing.

Real estate is a valid (and amazing) asset class. I'm not saying everyone should invest in it, but I am saying it should be a part of the financial planning conversation.

This video is a bit long, but the financial value will be worth the time: Real Estate and Investment Planning

Please share your feedback. Conversations about integrating real estate and retirement planning is long overdue.

[Ben Einspahr]

@Brady Mullen completely agree. There can be a lot of misconceptions that come along with real estate investing, both good and bad

A three of the most common:

1. I don't know where to start! With so much information out there. Very easy to get overwhelmed.

2. I don't have enough money to invest. There are a lot of creative strategies out there that allow one to acquire their first investment property with low money down (no, I am not talking about BRRRR).

3. My favorite. I do not want to deal with tenant calls in the middle of the night.