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Is Real Estate Investment is Safe for Retiree?

Posted Sunday, June 12, 2011

Hitting the retirement age of 65 does not mean that you have nothing more to do and should just retire. Today, the corporate pensions are dwindling and the social security benefits are not enough to sustain you in your retired life. The condition is such that even those people who had earlier planned something for their retirement are now being forced by their circumstances to work even in their late 60s and 70s. In a recent survey amongst the baby boomers, about two thirds of them felt that currently the living costs are very high to even think of peaceful retirement.

Savvy boomers have been busy making investment in the real estate to grow their nest eggs. Actually, when we buy houses or make investment in some commercial real estate, we are investing in our safe retirement. The real estate investment has proved to be a safe way for the people to generate adequate cash flow in their retirement years. The real estate investment functioned as a sort of retirement plan before all these plans were incorporated into the US tax code.

Though, people can successfully defer their taxes by investing in the 401(k)s but numerous tax saving strategies are also available to the people who are investing in the real estate. The main point is: If people are interested in comfortable retirement, they should invest in the real estate.

Suppose, you’ve made investment in the real estate/ or related investment such as mortgage notes to secure your retirement, you will get revenue from these investments without any kind of regulatory constraints that are applicable to the 401 (k) and related retirement plans of government. Above all, your property will appreciate in value thereby helping you to provide for your heirs without sacrificing your lifestyle in any way.

It takes lots of knowledge about the real estate to take the full advantage of the potential offered by it. Investors have numerous options when they are thinking of making investment in the real estate for their retirement. They should consider all these options so that they can select the best one suitable to their lifestyle and circumstances. Just simple thinking that once we buy houses or commercial property, we will be totally safe in our retirement years will not do. They will have to brush up their knowledge about various strategies that work and in which markets and the ways to recognize the economic cycles in order to learn of ways to respond to them. Investors should know of ways to look for the opportunities and maximize their gains.

So, has real estate emerged as a new 401(k) for investors? Well, in reality it is the old 401(k). Real estate has been one of the most trusted investment vehicles since centuries and has amply shown that the proven investment methods and financial management techniques actually work and will continue to work in all the economic cycles and markets.