Investing Teacher Pension ?

Question

Hi,

I was a 5th grade teacher for 11 years and have $47,000 saved up in the retirement system. I’m 40 years old and if leave it untouched I will be getting $10,000/year starting at 60 years old for the rest of my life.

I quit teaching a year ago and am now a full time realtor.

I’m considering taking out the $47K and investing it in real estate here in Kansas City, where I work and live.

I feel that I can make more by investing it myself rather than leaving it in the system but at the same time I don’t want to make a big mistake that I might regret down the road.

Any tips or advice on this?

Thanks in advance!

Franck

Marc Edwards · Answer

I agree with what was said. Find out what type first as there are many. I would also say educate yourself on some of these topics and then "JUMP". You do not want to be stuck in the analysis stage. But it is very doable, I have seen teachers, nurses and many other professions do it. One thing I have learned in this business is that with stocks your typical return is around 2-4% and you really can not control them. With real estate it's controllable. You can force appreciation, get appreciation over time, write off depreciation, pull out equity to name a few. There is just so many things that you can do with real estate that to me its a no brainer. Real Estate returns can vary also but the percentage of gains are usually higher from anywhere around 4-8% on the low end. You can also invest that money and put some back or all of what you took out with your gains. I do not want to give you advice on your investment in stocks as I am no CPA. In my opinion why not do both. Keep your stocks and still invest in Real Estate.

Frank Rodrigues · Answer

The first step is making a decision in what type of investing you want to get involved with, commercial, residential, flipping, Cashflow? KC is a phenomenal place for Cashflow. I’ve seen a lot of success in that market for years. Let me know if you have any questions, best of luck!