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My Case for Financial Assets – by Billy Kaderli

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My Case for Financial Assets – by Billy Kaderli

Billy Kaderli –  kicking back on Mexico’s Pacific Coast

When I was a stock broker in California – one of the hottest housing markets in the US – real-estate was my competition. “Everyone” was making money in real-estate so why would they invest in the stock market?

I needed an angle

I went to the Board of Realtors and got prices for 2-3 and 4 bedroom homes in the area, both at the current price and for 10 years prior. I did the math to calculate what annual return these houses were creating for that ten year span, and then compared that to the S&P 500 Index for the same time period.

The index clearly beat all three home styles without the hassles of ownership, like painting, plumbing problems, yard work, or replacing a roof. Now I had my argument to help people invest in the market.

Ok, that was then and this is now

Using Zillow.com I looked up what the home we used to own was now worth. It was listed at $862K. Again I did the math and found that over the last 31 years since we bought it, that house has appreciated 6.4% annually. Sounds OK, except that there were property taxes, maintenance and repairs that would need to be deducted lowering that annual return.

Then I wondered, what if we had put the money to buy our home into the S&P 500? So I calculated that figure also.

Are you ready?

It would be worth 3 million Dollars today! Over three times the current value of the home as the Index produced a 10.46% annual return during those 31 years.

Even the down payment alone, had we invested it, would have grown to $765K, about the cost of the home today. Amazing.

What about you?

Use this calculator see how your money could have grown. And Zillow to see your current home value. You do the math.

About the Authors

Billy and Akaisha Kaderli are recognized retirement experts and internationally published authors on topics of finance, medical tourism and world travel. With the wealth of information they share on their award winning website RetireEarlyLifestyle.com, they have been helping people achieve their own retirement dreams since 1991. They wrote the popular books, The Adventurer’s Guide to Early Retirement and Your Retirement Dream IS Possible available on their website bookstore or on Amazon.com.

Billy and Akaisha Kaderli are recognized retirement experts and internationally published authors on topics of finance, medical tourism and world travel. In 1991, at the age of 38, they challenged the belief systems of everyone they knew and left the conventional working world to travel the globe. Facing unique challenges and living well on less money, Billy and Akaisha have been helping people achieve their own dreams of financial independence by sharing the wealth of information they have collected over the years on their website RetireEarlyLifestyle.com.

Their approach to financial freedom is that if they can do it, you can too! They believe that becoming financially self-sustaining is one of the best things you can do for yourself and for the world. In this way you are free to utilize your talents for the benefit of those around you. Their goal is to assist anyone who has the drive to become financially independent. You can write to them directly with your questions and comments at TheGuide@RetireEarlyLifestyle.com. They wrote the popular books, The Adventurer’s Guide to Early Retirement and Your Retirement Dream IS Possible, available on their website or on Amazon.com.

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