Retirement Investments - Consider Real Estate
There was a time when saving for retirement was primarily about investing in a 401K or IRA . If you were lucky enough to have worked for a company for a long time , you may also receive a pension . You also would get a little bit of income from social security . I know for people like my Dad , these income sources plus good debt management has allowed for him to live comfortably in his golden years .
But times have changed ! It ’ s unrealistic to expect a pension not only because many employers don ’ t offer them but because American ’ s are changing jobs several times during their career . Those whose employers offer a 401K and / or IRA have a difficult time putting at least 10 % of their earnings into savings . Additionally , financial independence takes decades to build . Unless we were taught to start young ( like when we were 20 !) most of us will fall short of having enough money to get us through retirement .
What most people don ’ t know is that you can build a retirement account with Real Estate ! This industry has so much more to offer than just being a landlord . There are investments that are nearly hands off and there are some that require physical labor . The good thing is that there is something for everyone ; you just need to figure out what fits your short & long term financial goals .
If you are employed and have time before you need your investments to pay you , buying rental properties ( either commercial or residential ) can be a great source for future income . Studies show that when held over the long term ( 20 + years ), appreciation and rental income outbeat the stock market . Other long term investments include buying into mortgage notes or buying tax liens .
If you need cash flow now , there are host of Real Estate investments that could provide you that . Those include wholesaling property , fix & flips and lending your own money .
Like any good Financial Advisor will tell you , a diversified portfolio is important along with proper allocation in each investment class . There are several Real Estate Investor groups in our area and some excellent professionals to help you get started .
– Traci Ranic , Mortgage Planner Frontier Financial of Arizona
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