All Forum Posts by: Kyle Ashmore

Housing bubble or just supply and demand? We are definitely seeing a surge in housing, but it’s different from 2007.

Back in 07’, housing surged, due to bad banking lending regulations. Everyone was buying because they were scared they would miss out. Bad credit? No worries, you can buy a house! Fast forward to 2021- banks have tightened up, we are seeing less cash out refis, higher credit scores and less second homes purchases.

Should we be scared of a bubble? I would say no...but maybe a 10% correction. No more bad credit lending, but a supply and demand issue.

We're in a spot today where demand is very high and supply is very low, which drives prices even higher.

Higher construction costs exacerbate this issue. With lumber prices increasing (adding an additional 30% cost), an increase of 25% on tariffs on Chinese goods like metals, finished materials (like flooring and wall panels).

Another pricing factor is lack of builder confidence. Builders are still recovering from 2007 and are shy to go all in with building supplies being temporary over priced.

Lower interest rates are driving people to the market, which reduces the supply.

Lastly, millennials, are aging into this consumer market, influencing availability of housing by 30%.

Hey Thomas, great goal! Very impressive you already have an FI number and timeframe at such a young age. Compounding is definitely on your side. The great Albert Einstein once said“Compound interest is the eighth wonder of the world. Just keep in mind yes you can withdraw from your Roth IRA before age 59.5 tax and penalty free but make sure you withdraw from your contributions you made to your Roth IRA not from your earrings. 

Good luck on your Journey!

Kyle 

Hi Randy, I agree with your comment. Having a reoccurring revenue stream to reach your financial goal is obviously important. Owning Real Estate and owning companies via stock will both get you there. My post is to really get people thinking about there end game and do they have a FI number in mind. If you like or dislike the 4% rule is fine as long as your thinking about your Financial goal. What is your end game and work backwards. 
Thanks for the response! 
Kyle Ashmore

What is your FI (Financial Independence) number?

How to find your FI number: Determine your annual spending in retirement, yes, you need to have a budget! Multiple the above number by 25. Example, if you require $60,000 a year in retirement, then your number is $60,000 x 25 = $1,500,000. $1.5 million is your FI NUMBER. The reason that this math works out is because there is a relationship to the “25 x rule,” which is called “The 4% Rule.” This rule is based on the Trinity Study, which showed that you can spend 4% of your nest egg and remain relatively reassured that your funds would last over 30 years (95-100% chance based on a 50% stock / 50% bond portfolio). What is your FI number?

What is your FI (Financial Independence) number?

How to find your FI number: Determine your annual spending in retirement, yes, you need to have a budget! Multiple the above number by 25. Example, if you require $60,000 a year in retirement, then your number is $60,000 x 25 = $1,500,000. $1.5 million is your FI NUMBER. The reason that this math works out is because there is a relationship to the “25 x rule,” which is called “The 4% Rule.” This rule is based on the Trinity Study, which showed that you can spend 4% of your nest egg and remain relatively reassured that your funds would last over 30 years (95-100% chance based on a 50% stock / 50% bond portfolio).
What is your FI number?

What's the name of your company? Give me your contact information. 

Thanks

Kyle

By Opry-Mills

Not happy with my property Management in Nashville,TN.

I live in Vegas so need help founding a new PM in Nashville.

Any recommendations?

Thanks Kyle

Originally posted by @Paul Moore:

Sharlene,

It's funny that you asked this question, because that same day I wrote a BP blog post on this topic.  It has not been published yet, but if you or anyone wants a PDF or Word copy of it, please contact me and I'll send it your way.  I expect it will be out this week.  

Warren Buffett has achieved 99% of his net worth since he was 50.  And you can, too. But to do this well at 59 (or even in your 40s and beyond), you're going to have to be very strategic.  

Every financial planner knows that the shorter the time horizon, the less risk you should take. But low risk almost always leads to low return. Yet because of your short time horizon, you have to get a high return to make up for lost years.

The problem is that in general, low risk leads to low return, and high risk does not lead to high return. In general, high risk leads to high potential return. And high potential loss as well.

It’s a real dilemma, and most investors assume they missed out. That it’s too late. They’re right in the sense that they missed a lot of great years to build their portfolio. But they’d be wrong if they believe there’s no hope.

There is hope. But like I said, you’re going to have to be very strategic. You’re going to have to get an investment that protects you from downside risk... and gives you very healthy growth and returns.

My post discusses exactly how to do this so ask me for it... or look for it soon!  

 Paul can I get a copy? 

Thanks

Kyle

Looking for a new Property Management in Nashville.