5 billion people cannot retire in financial security due to asset inflation. The financial security that our grandparents enjoyed is gone.
Asset inflation #1
£350k assets now cost £5,000,000.
In the 80's, my grandfather offered this wisdom, "To retire comfortably, invest in government bonds and live off the interest." So, 40 years ago, my grandfather only needed to prepare £350k for £50k per year income. However, nowadays, I need to prepare £5m for the same £50k pension.
My grandfather needed £350,000 to retire, we need £5,000,000. That's asset inflation.
Asset inflation #2
Houses cost 3x-5x more today.
My mother prides herself in building a portfolio of 10 properties. That is really impressive! "All you need is hard work", she says.
But, when she bought her properties, the average house price was 2x the average salary, she could get a mortgage easily, and received government grants to refurbish her properties. Nowadays, properties are 6x-10x our salaries (some locations are at 50x salaries), it's difficult to get a mortgage, and without any grants for refurbs.
Forgive me mum, with asset inflation this high, and without the benefits you enjoyed, how can we build a real estate portfolio of 10 units -- even with hard work?
Bring back financial security
So, we need to bring back the financial security our parents and grandparents enjoyed by creating inflation-proof assets with long-term security that we can sell quickly if needed.