Where would you be today if your IRA / 401K funds had grown as much as your home has appreciated over the past 5, 10, 20 years?
The Social Security Administration provides 89% of all retirement income. 9 out of 10 Americans depend on an annual income of $ 13,500.00 / year. or $ 1,250 / month. Imagine trying to survive on those meager funds!
Do you know how much income you will need to live when you retire that exceeds the amount that Social Security will provide? Let’s take a look at some hard facts here …
For every $ 5,000.00 of net income, you will need to put $ 2,000,000 in cash in a guaranteed investment, such as US Treasuries that earn 4% annually. How will you get there?
Also, with the volatility of the stock market, you can’t afford a big loss. The government places restrictions on the amount of contribution you can return to your retirement plan.
Under the Rule of 72 with a 10% return, your money will double every 7.2 years
Did you realize you have alternatives to the stock market and underperforming assets? Section 408 of the IRS code allows people to place real estate in their retirement plan. However, not all public accountants, lawyers, and financial planners are aware of this.
Imagine using the most stable and virtually risk-free vehicle to build your portfolio. Who has time to manage stocks, mutual funds, and all the other wealth-building tools? Wouldn’t you rather build it the easy way, using the power of appreciation and time to generate huge profits with little or no tax?
When placing real estate in your retirement mix, you must be selective. Why risk bad renters, mortgage debt, another housing bubble, or a change in the housing market? You need to buy real estate on an important growth path. It must be usable, free of defects or clouds in the title. You should also be able to use the power of joint tenants to gain leverage.
Ask yourself what has been the best purchase you have ever made. Was it your house? where you bought it? When did you buy it? How much is it worth today? Would you like to see a better real estate purchase that yields you better returns over time than your home? Try land banking.
Not just any old land has to have very strict criteria. Growth is the main driver, what about the water, the economy, a solid tax base, the planned business, the community, the roads, the sewer? Are you starting to see the picture now? Would you like to retire rich and create the lifestyle you’ve always dreamed of?