How often do you daydream about retiring and walking away from your 9-to-5 lifestyle? It’s an exciting time once you get there, and you’ve probably looked forward to it for a while.
Over the years, you’ve steadily contributed to your 401(k) and IRA. You’ve even assessed your Social Security benefits. But are you sure you’re prepared for retirement?
In your planning, you may want to consider this question: How can real estate factor into my secure financial future?
Real estate is an ideal asset for retirement. Putting your money into a primary residence as well as investment properties during your working years can play a significant role in ensuring your comfortable retirement.
What makes investing in real estate a smart strategy for retirement?
- Rental properties are less volatile than stocks. Securing an investment in a well-known neighborhood can offer stable, long-term returns that aren’t guaranteed through playing the market.
- Home equity pays off. Early investment in homeownership can make a lasting impact on housing wealth, making homeowners better off financially in their 60s.
- A diverse and balanced portfolio that includes property distributes risk, earns greater rewards and ultimately helps you weather future storms.
- Tax deductions often come with property ownership. That’s especially true if you’re still paying off a mortgage or own rental properties.
- Real estate investment trusts (REITs) are generally stable as a hands-off approach to investing. One of the best-performing asset classes available, REITs offer high returns for fixed-income portfolios.
There’s no doubt about it: Real estate investments afford you the peace of mind to actually enjoy your retirement.
Get in touch if you’re ready to further diversify your real estate portfolio.