How to Build Wealth for Retirement in Florida

Have you ever wondered how to achieve a comfortable retirement that lets you live the lifestyle of your dreams? In Episode 10 of our podcast "Everything About Wealth" (available on YouTube), my partner Desiree Troncoso and I explored essential wealth planning strategies for retirement. This article expands on that conversation, offering practical advice for the Latino community in the U.S. seeking long-term financial security. From setting goals to choosing the best retirement investments, here are key tools to start today.

Step One: Define Your Lifestyle and Retirement Goals

Wealth planning begins with a simple yet powerful question: what lifestyle do you want to live when you retire? Do you see yourself traveling four times a year, living in a bustling city like Los Angeles or New York, or perhaps enjoying a quiet life with a bicycle as your companion? Desiree and I agree that the first step is to envision your ideal retirement and then calculate how much money you’ll need to make it happen.

For instance, if you dream of a luxurious retirement—say, driving a Ferrari and taking multiple vacations—you might need $15 million. If you prefer something more moderate, like a Mercedes and fewer trips, $10 million could suffice. Even in a more conservative scenario, $5 million could ensure a comfortable retirement. It all depends on where you plan to live and how inflation will impact your expenses over time. In high-cost cities like New York, being middle-class requires $350,000 in annual income, which translates to about $10 million with a 4% withdrawal rate. In more affordable areas, $200,000 or less might be enough.

The key is to start with the lifestyle and work backward to determine the amount needed. This gives you clarity and a concrete goal for your wealth planning.

How Long Will You Live? Consider Longevity

One critical factor we often overlook is life expectancy. Thanks to advances in medicine and technology, many of us could live to 90 or 100—or even 150, as I jokingly mentioned in the podcast. This means your savings must last longer than past generations planned for. If you only save up to age 75 or 80, you might fall short. That’s why it’s essential to plan with a long-term perspective and consider strategies like the 4% rule—withdrawing just 4% of your capital annually so it never runs out—or adjusting to a higher rate (like 6%) if you didn’t hit your ideal target.

Investment Strategies to Build Wealth for Retirement

So, how do you reach that $5, $10, or $15 million mark? In the episode, we highlighted three main areas to build wealth for retirement: the stock market, real estate, and business ownership. Each has its advantages, and your choice will depend on your experience and comfort level.

1. Stock Market: The stock market is a classic and accessible option. You can invest in mutual funds (baskets of stocks managed by professionals), index funds (which track indices like the S&P 500 at lower costs), or ETFs (exchange-traded funds offering flexibility). As David Bach suggested in The Automatic Millionaire, automate your investments—say, $400 monthly—and let time and compound interest do the work. For new investors, this is a safe way to start.
   

2. Real Estate: Real estate is our personal favorite. From single-family homes to multifamily properties, it offers passive income and tax benefits like the 1031 exchange, which lets you defer taxes by reinvesting profits into another property. For example, you could start with a house, then move to a duplex, and eventually a 100-unit building, growing your wealth over time. At Coso Cap, we offer investor loans like DSCR loans and rental property loans, perfect for those looking to finance their entry into this market.
   

3. Business Ownership: Starting or buying a business can be a powerful path. Age doesn’t matter—David Epstein’s Range notes the average founder is 45, thanks to their experience. Free resources like SCORE or the National Entrepreneurship Center can help you take the first step. Plus, businesses and real estate can complement each other: a business owner might use profits to buy properties, diversifying and reducing taxes.

   
   

Your education and experience will determine how risky these options feel to you. If you need guidance, CosoCap.com offers personalized advisory services to find the right strategy for you.

Paying Down Debt: Accelerator or Obstacle?

Reducing debt is another pillar of wealth planning. In the podcast, we discussed “debt stacking” for credit cards: pay off the card with the highest interest and lowest balance first, then roll that payment into the next. This creates a snowball effect that clears debt quickly. But what about your mortgage?

Paying off your mortgage early—with a 15-year loan, biweekly payments, or an equity line of credit program—can save thousands in interest. For example, with a $200,000 loan at 4% over 30 years, a biweekly program could save you $22,553 and shorten the term to 25 years. However, investing that extra $80/month at a 12% return over 25 years could yield $136,500—a $113,000 difference. Personally, I’d opt to invest for the higher return, but if peace of mind is your priority, paying off the mortgage early makes sense. Use free online calculators (we’ll share links in the episode summary) to evaluate your situation.

When to Start? Invest Based on Your Age

The ideal time to begin is now, but your options vary by age:

• 20s: Invest $200-$400 monthly in mutual funds or ETFs. Time is on your side, so you don’t need high risks to build a solid nest egg.

• 30s: Stick with the stock market, but consider real estate like rental homes to speed up growth.

• 40s: If you’re behind, combine funds with duplex properties or a small business based on your experience.

• 50s: Focus on real estate—flipping homes or multifamily units—for faster returns.

• 60s: Target commercial real estate (apartment buildings, warehouses) where one deal could fund your retirement.

At Coso Cap, we offer bridge loans and commercial loans to support you, no matter your stage.

Why Retirement Planning Matters

Why does all this matter? First, Social Security isn’t a guarantee—its statements warn it won’t suffice and will soon pay out more than it takes in. Second, healthcare (even with Medicare) may require costly supplemental coverage. Third, you don’t want your money to run out before you do—imagine living to 90 but exhausting funds at 85. Finally, financial literacy lets you reduce risks, minimize taxes, and perhaps retire early at 50 or 40.

Conclusion: Start Today for a Secure Future

A comfortable retirement doesn’t require 200 properties or a million-dollar business. One or two properties generating $2,000-$4,000 monthly, paired with savings or a small business, can supplement Social Security and give you peace of mind. For more tools, listen to Episode 10 on YouTube or contact us at (407) 203-9599 at Coso Cap to explore investor loans and personalized strategies. Follow us @everythingaboutwealth and visit CosoCap.com to take the first step toward your financial future.