What are the best investment moves for retired individuals and those who are planning ahead for retirement?
Whether you are already retired, or you are trying to keep ahead of your retirement date and unexpectedly needing to stop working, what are the most important considerations for your money? What does that tell you about the best investments which align with your priorities? What are the best ways to engage in them?
The Most Important Priorities For Retirees
Income is a big priority for retirees. When earned income ends, you need investment income to be there to provide for your basic needs and anything else you’d like to be able to do in retirement.
Making your savings and nest egg last is important. Unfortunately, the data shows that most retirees burn through over half of their retirement savings and investment capital within just five years of retiring. Today, we need to be prepared to survive and thrive in retirement for 30 years or more.
If you are spending your nest egg you’ll be broke pretty quickly. Then you don’t have the capital to generate income. Versus investing that for income first, and leaving your capital intact, and even growing instead of being depleted.
Ensuring your legacy is also a big factor for many people. You want to be sure those people and causes you care about are taken care of after you are gone too. You want to preserve as much as possible, for as long as possible. So, investing in assets and through vehicles that minimize taxes, provide a smooth hand-off, and even ongoing asset management is important too.
Investing In Real Estate For Retirement
Choosing real estate investment for retirement income is a move that checks all of the boxes at the same time.
It can provide:
- Passive income
- Wealth growth
- Wealth preservation with hard real estate collateral
- Tax benefits
- Ease of transition to the next generation
How To Invest In Real Estate For Retirement
There are several ways to engage in this asset class for retirement.
Direct investment in rental homes as a landlord, or making individual hard money loans are possibilities. However, DIY management and underwriting your own deals can be more than a full-time job. It’s not nearly as passive as it is often sold. Banking your retirement on this without many years of experience can be highly risky.
In contrast, investing through a fund, syndication, or partnership structure can leverage professional management with decades of experience, and the technology and teams that can make all the difference in the results you really want.
It also brings size to diversify and minimize your individual risk, in tandem with the contacts and access to maximize the upside potential and get into investments you can’t by yourself.
Perhaps most importantly this strategy offers truly passive income. So, you can actually enjoy your freedom in retirement and can count on the results, even if you can’t work.
Investing in these assets through trusts, and other retirement accounts can help defer and legally shelter your gains, income, and estate from taxes too.
Talk to one of our experts today to find out more about how our investments can fit into your retirement needs and plans…
