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Investing for

freedom vs retirement

The majority of people chase retirement, while the minority chases freedom. 


The vast majority of people invest their money into a 401k, Roth IRA, mutual fund and/or their primary residence. This is all in the pursuit of a retirement much later in life. In fact, if you talk to people about this subject, most simply assume that retirement is the carrot we should all be chasing. But why do we believe this is our only option? What about chasing freedom today, instead of a mediocre retirement toward the end of life? What about establishing cash flow, instead of locking up our money and making mutual fund managers wealthy?


While there is no concrete answer to this, one can only assume it’s rooted in the ease and simplicity of the system we are all a part of. It’s easy to elect the amount which will be taken from our paychecks. It’s easy to only listen to what society preaches to us. It’s easy to simply follow the masses.


But while there is an established path of people who save their money, invest for the future and retire on a budget, there is also a number of people who put freedom far above the idea of retirement. 


For these individuals, the equation is much different. Instead of saving a lump sum of cash, then living a small life to make it last, they invest for cash flow. Cash flow is the differentiator between these two groups. One saves and saves, then spends little to make their nest egg last as long as possible. The other invests in cash flow assets in order to create freedom in the near term.  


The two groups fundamentally look at the world of finance in a different way. One focuses on a nest egg (a large sum of money), while the other focuses on creating a flow of resources in their direction. The result of these two paths are also very different. One has to work harder and harder to save as much as possible, while the other slowly works less and less as cash flows increase. Over time, their lives diverge in a big way. 


Creating cash flow 


While there are many options for creating cash flow (high dividend stocks, businesses, books, blogs, etc) rental real estate has and always will be one of the greatest tools to achieve this. In fact, the right real estate investments can put predictable cash into your pocket each and every month. By focusing on cash flow, the need for a retirement nest egg as well as employment itself begins to fade. 


Cash flow is the answer to providing freedom in the short term. Within real estate, there are many options for creating cash flow. Some invest in single family properties, while others invest in commercial properties or multifamily properties. Some are active investors, while others are passive. Some manage and others hire management. The combinations and options for investing in real estate are vast and really depend on what kind of owner you wish to be.  


In my career, I have always been an active investor. In other words, I have always been intimately involved in the operations of my properties. While I enjoy this kind of work, others hate it. They can’t stand the thought of taking calls and dealing with issues that may come up. Running properties is not easy and is not exactly what everybody wants to do. I assume this is another reason many investors put their money into the stock market. Once they invest, they don’t really need to think much about it. 


But while the stock market offers an ease of ownership, it doesn’t offer any sense of security or cash flow. The market is unpredictable, erratic and unforgiving. The only thing sure about the market, is it is great for stock brokers, mutual fund managers, hedge fund managers, etc. You keep working while they collect fees on your money…even if they lose it.  


Back to real estate


So what are you pursuing? Are you focused on saving and living off the sum, or building strong cash flows?  If cash flow is your focus, then rental real estate may be a great asset for your portfolio…. Even if you don’t want to manage it. What most people don’t realize, is there are other options outside of personally managing real estate. Have you heard of syndications? Investing in syndications is similar to investing in a stock. Once you invest, you can go back to focusing on what you do best. 


What is a syndication? 


A syndication is group investing and like combining the ease of ownership of stocks, with the benefits of owning real estate. Investors pool funds and the syndicator/sponsor acquires, operates and maximizes the asset. Investors are given an equity stake in the property as well as cash flows from monthly rent. When the property sells or is refinanced, investors are given back their original contribution followed by their share of the upside. Syndication investing allows for people to invest in properties without having to do the work. In this way, an investor can hold real estate without the headache. 


Real estate can provide the cash flow needed to achieve freedom. And once you’re free, there really is no need to chase retirement. 


Cadia Capital Group 


Cadia Capital Group is committed to growing passive income and wealth through affordable housing assets. These include mobile home parks and affordable apartment communities. If you are an accredited investor and interested in connecting with us, please complete the form below. 

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