Why Traditional Investing Creates the Silent Business Trap
The majority of business owners I know won’t be retiring for another 15 to 25 years.
EVEN IF they follow the traditional playbook of accumulating property assets.
And the reason why is because the current property market in Australia can only afford you 1% – 3% net returns in cash flow.
If you’re like most Aussies families and need a couple of hundred thousand a year in income to become financially free, you can work out how much your property portfolio needs to be for you to retire.
I’ll work out the maths with you even on a conservative basis of needing $100,000 a year with a 3% net return: $3.3m in property.
Does that sound like something you can achieve in the short to medium term?
And that’s what I call the silent business trap.
Because it’s not the kind of trap that’s lurking around the corner that’ll shock you into an immediate reaction.
It’s the type that’ll creep up on you over time, and before you know it, you’re like a cornered rat with no place to run and very little time to do anything about it.
So in this week’s podcast, I want to talk about why this happens and how you can identify and avoid this.
00:00 – Intro
01:06 – The 2 pathways of business
01:41 – Pathway 1: Growing a business to sell
03:05 – Pathway 2: Investing outside of your business
07:37 – Increasing cashflow returns from your assets
09:38 – 3 Things to be sure of when investing in the alternative space
12:05 – Key takeaways from this episode
14:04 – Final thoughts
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