Because many investors receive biased advice, approximately 95% of all Americans will fail to be able to retire the way they want. They are often told that only way they can comfortably retire is to have a huge nest egg in the form of a stock and bond portfolio.
Focusing on the income from an investment portfolio versus the size of a portfolio can be the difference between living well in retirement or running out of money.
Do you know that after expenses in 8 out of 14 decades the S&P 500 has a compound rate of return of 3% or less? Few people do.
So where should you invest your money?
Most good rental income properties in Denver offer a NET rental income greater than 6.5%. The rental income alone has beaten stocks in 11 out of 15 decades and that is not accounting for property appreciation, which is a great security against inflation. The current real estate market is considered one of the best opportunities in decades.
There are many different ways you can invest in real estate. The classic is to purchase a rental property and collect the rent. Over the years the property will be paid off, the rents will increase, and the property will gain value. At retirement you can collect rents while the house equity is left untouched.
If owning Denver rental property does not appeal to you or if you are looking for another investment, many people are investing in notes. Notes are loans on real property where the investor is protected by holding the deed of trust. Many of these notes pay 6 to 15% interest rates and without the fees charged by stock brokers.
There is no ideal investment for everyone; every investment involves different types of risk. It is really a question of which investment options provide the highest probability of success for the least amount of risk.
It’s time to look to Real Estate for your IRA
Few investors take advantage of the tax advantages of a Roth Real Estate IRA. A Real Estate IRA, when properly structured can earn tax-free growth and income. Denver Real Estate is one of the few hard assets that can protect you from inflation and generate monthly income.
Most of this information comes from the web site “Howtoretirehappy.com”
For more information please call any time.