Retirement Income Strategy: Beyond A 403(b)

Loral Langemeier: Hi, Donna, how are you Unknown: good? How are you Loral Langemeier: good? Hi, Sandy, how are you good, good, good, good. All right, you're in Pennsylvania, young lady, Unknown: yes.

Loral Langemeier: All right, I'm gonna move that little white away from me a bit. All right, here's your question. You'll be retiring. You're not retiring.

You're just transitioning from from teaching this June with a 403 b and a lump sum payment from the district in which you work. You don't want these lazy assets just sitting accumulating low interest. Good job, good thinking. What would you suggest is my next step?

I've always been interested in real estate investors. Time to jump in. So I love that and what we would do. So currently, in those situations, the way that you get the lump sum and the 403, it's just going to sit where they invest.

So whatever financial institute is currently with, that's where it sits, and it just makes those little bits of money. So once you're done with your job, like right now, the only thing you could do with that money is you could, you could actually go take a loan out for 50,000 up to 50,000 that's typically a federal average, and then you could just play with that. But so you're a couple months away, you can either do that now and then. You don't have to pay it back, but then you would transfer the whole amount to what we call a self directed account.

And the places we self direct are very alternative. They have up to 52 different assets. So you could use real estate, you could buy gold, silver, you buy cows, you could buy horses, you could buy crypto. So we just gets 52 different assets.

You could buy an RV park. There's a lot of places you can play because the custodian, the person holding the money, allows a bigger breadth of alternative investments. I would assume probably where your 403 is, is probably like with a mass mutual Schwab fidelity one of them, right? It's really a traditional firm, and you don't get to do they call it self directing, but it's only into their products.

So you have a very limited way to play. So the like, I would jump into the table, start getting organized, and in June, when you leave, then we move, you know, you move all that money. Now, the thing though, that you're going to want to do, because you're not that old, I can tell you're going to Unknown: want 58 Loral Langemeier: Yeah, so you still, I would still start a cash machine. So whether that becomes a property management, it could become as simple as a direct sales company.

Sandy, and I've been in like, multiple direct sales companies as extra revenue, you could you could do tutoring on the side. You could do test preparation. And again, it has to have the legal intent to make money, which means you're going to do some work, but it doesn't have to be like a lot of work. But if you don't have that, that entrepreneurial venture next to your investing, you don't get activate the whole part of the tax code to keep your taxes super low, because a lot of that, I would bet, once you start pulling it, which, again, if you start a business that can supplement and really you could live on that, then all of this money can continue to grow and grow into better assets, right?

Your whole portfolio is just going to get bigger faster in that way. Does that make sense? Unknown: Yes. Um, my son and I, we just started like a vending machine business a couple years ago that was being taxed, and they said, start a business so you won't have to pay, you know, as high as a text, Loral Langemeier: did you put the vending business in an entity, Unknown: LLC, Loral Langemeier: perfect, and so that would just get more and more strategic.

And we've had vending, you know, you could think about this, and you could go from vending to multiple vending to cool vending, if you can get vending in airports, you know, they're golden, Unknown: yes, and Loral Langemeier: they're not as hard to get. They're not as hard to get as you think. You just go Unknown: to really, okay, Loral Langemeier: well, no, you just gotta get. Just got to walk through the paperwork and the the, you know, the drama of getting there, the research to do before, though, is certain airports take a lot of your revenue as part of your lease.

So I would find out the rules of engagement before you waste your time. And then other airports, they don't take hardly any so there's not like a norm across so, you know, you're in Pennsylvania, so like Philadelphia might take a lot, Pittsburgh might take a lot less, so you got to shop it a little bit. But the other thing that vending folks have done to get to other revenue faster our food trucks, Unknown: yeah, because Loral Langemeier: it's just a bigger, you know, it's a drivable vending machine going and that's a whole nother thing.

So I would just like work with your son to add on revenue that way you have that you can live on. And then don't touch that 403, B, get it invested for the next 12 years, and then it's 70. You have to start taking the distributions out. But you'll have a better you just have a whole better foundation, more assets.

Because most people that in your situation, as you know, they stop, and then they start living on all of that, and it's gone before the. Their lifetime. It's not enough. It's typically not enough.

Unknown: Okay, Loral Langemeier: okay, Unknown: all right, Loral Langemeier: that's what we would do right away. And yeah, bring your fam. Unknown: What about the real estate aspect of what I want to do? Loral Langemeier: Well, at the table, we've now started, starting in May, we have where, I mean, you get free tours.

You can go on a free tour once a month if you want to. I mean, you got to, you got to fly into your hotel. But other than that, there's no cost to the tours. Is another bonus benefit of being in the big table.

So you could buy all sorts of variety with somebody else doing most of the work, where you're just the investor, or I would assign you a real estate coach, and depending on the market you're in, they would teach you how to go out, and we teach you how to go out and find some own, your own real estate for you and your son to manage. Unknown: Okay, Loral Langemeier: so either way, maybe go more passive, where you don't have to do as much of the work. The leg works done, the management's done.

It's a little more done for you, and then you could just do it yourself. So you you will get the education and make some of those decisions. Unknown: Okay, so I'll just talk to Sandy Thursday. Loral Langemeier: Talk to Sandy.

Let's get you moving, young lady, may one Friday, and then by the time you leave, you'll have enough structure set up that we can immediately move it. And then you can start, if you wait to start it, just, you know, it's just like anything. It's a delay. Unknown: Okay, Loral Langemeier: awesome.

Chapter. Can't wait. Donna, Unknown: Yep, Loral Langemeier: good, good to meet you. Thursday.

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