It can be shocking to hear how many people spend more time planning their vacation or next mobile phone purchase than planning for retirement. It is hard to imagine that they are expecting Social Security will take them through their golden years. A person who has paid in the maximum each year to social securitycan assume to receive about $30,000 a year.
Every adult in the work force, should go toSSA.govto find out what they can expect based on their planned retirement age. Since it probably won’t be the amount you need to retire comfortably, at least you’ll know how much you’ll be short so that you can devise an investment plan.
There’s an easy rule of thumb used to estimate the investable assets needed by the time they retire to generate a certain income. The target annual income is divided by a safe, conservative yield to determine the investable assets needed.
A person who wants $80,000 annual income generated from a 4% investment would need investable assets of $2,000,000. If a person had $500,000 now, they would need to accumulate $1.5 million more by the time they retire. They would need to save about $100,000 a year to be ready for retirement in 15 years.
If saving that amount does seem possible, an IDEAL alternative could be to invest in rental homes. The familiarity of rental homes like owning a personal residence can reduce some of the risk. Rentals also enjoy other characteristics like income from the operation, depreciation in the form of tax shelter, equity buildup from the amortization of the loan, appreciation and leverage from the borrowed funds controlling a larger asset.
Some investors explain the strategy by buying good rentals with mortgages and having the tenant to retire the debt for you. Single family homes offer the investor an opportunity to meet their retirement and financial goals with an investment that is easily understood and controlled.
Trust eXp Realty and our team of real estate agents to help you find homes for sale or to sell your current home. We recognize the level of service that the mobile consumer demands. You have information. You have dreams. We possess experience, integrity, and innovation. Together we create leverage to make your dreams a reality.
YoJugis, have you ever taken a silent yoga class? It's interestin
"It has been a pleasure working with Monica over the past few months. She took the time to really research the area I was interested in purchasing my first home. And when we found it, she worked quickly and efficiently to negotiate on my behalf. Monica offered sound advice and she took the time to communicate about the little things, which was especially important to me as a first time home buyer. Monica also followed up regularly, just by checking in with a simple text or phone call while I was waiting in escrow. The process was much easier than I expected and it went very smoothly. I would happily and highly recommend Monica to anyone looking for a new home. Thank you for everything you’ve done over the past few months for me. I’m sure the day will come soon when we can work together again. — Jenn Jankiewicz"