With the rising cost of living, inflation, and high interest rates and home prices, many young people receive financial help from their parents. Pew Research Center reported that 44% of children aged 18 to 34 had some form of financial help from a parent as of 2024 (1). But as those parents near retirement, they may struggle with wanting to help their kids, but worrying whether they are financially stable enough to do so. Must Read Imagine Gordon, who is 64 and plans to retire next year. He lives in a ...

Financial Anxiety and Retirement Concerns - 77% of Americans feel anxious about their financial situation [5] - Most Americans have $10,000 in credit card debt, taking 19 years to pay off with minimum payments [5][6] - In 1960, 50% of private sector workers had a pension, but today it's under 15% [6] - Social Security funds are projected to run out in 10 years [6] - The average 401k balance for someone 65 and older is $279,000 [7] - In 2020, only 51% of employees participated in their employer's 401k plan [7] Real Estate as a Solution for Financial Security - Real estate offers cash flow, leverage (as little as 5% down), principal paydown, and tax benefits [8] - Tax benefits include write-offs for interest, repairs, and property visit trips [9] - Real estate provides economic appreciation (market goes up) and forced appreciation (increase income, cut expenses, fix it up) [9] - Real estate is accessible for people in their 20s or 60s, whether working a regular job or making it a career [10] The 321 Real Estate Investment Process - Step 3: Live in one unit of a multifamily property (found in cities or urban centers) and rent out the others, saving the excess cash flow for six to seven years [14] - Some cities incentivize living there, offering up to $40,000 for buying a property [15] - Step 2: Buy a two-family property, move in, and rent out four units, saving the excess cash flow for six to seven years [15] - Step 1: Buy a single-family property, resulting in five rental units providing income and a home [16]

System Critique - The financial system restricts investment property purchases for a 17-year-old [1] - The financial system readily provides substantial student loans without a repayment plan [1] - The financial system is perceived as flawed [1]