According to a recent survey of over 200 full time real estate agents 47% of them report that they have less than $25,000 saved for retirement.
The real estate industry is a tightly knit group of professionals that are very unique in the fact that the same people you compete against every day in the market place for business are also an important part of your success in the business. This odd occurrence makes Realtors™ a group of people that has to be able to market, sell, negotiate, keep the peace, and have an in depth knowledge of their property market as well as financing options. If you have all of these abilities (and very few people do) then you are in a position to be a successful real estate professional.
Because of the talent required to operate in this business successfully it is shocking to see how many agents are not creating real wealth for their families. In a business that boasts about gross numbers i.e.: multimillion dollar producer and $100,000 of GCC the real barometer of success needs to be dramatically changed. Financial success is not about what you make but rather it is about what you keep. If almost half of agents have put away less than $25,000 for future years it lets us know there is a flaw in the system.
As I talk to real estate agents and brokers from all over the country, one of the biggest reasons they don't put away enough money is that they are worried about slow times in their business and being able to pay the bills if they have a few tough months in a row. So rather than give up the access to any extra cash they have saved and put the money into an IRA or some other such qualified plan, many leave it in the bank where it seems to mysteriously disappear over a short period of time. This phenomenon is wide spread in the industry and costing many of us an abundant retirement.
The traditional financial world has not designed most of its programs for the business owner or commissioned sales person but rather for the traditional employee. The programs that may work for the hourly or salaried employee leave much to be desired for the commissioned agent. There is hope and a new way to think about money and wealth and that new personal finance business model is perfect for the commissioned salesperson and business owner.
From the Lenawee County Association of Realtors March 2014 Newsletter