As retirement age draws ever nearer, many people are starting to realize that what they thought they needed to retire a few years ago is no longer enough. Life expectancies are getting longer, and the market crash of a few years back left many people’s retirement funds devastated. Fidelity suggests that you need at least eight times your ending salary (the annual salary you were earning when you retired) in order to have enough to spend 25 years in retirement.
However, what if you want to retire at 50 instead of 65? Or what if you live to be 105? Businesses are cutting 401(k) matching programs, the stock market is seeming riskier than ever, and Social Security is drying up. What if you haven’t started saving yet? Or what if you haven’t been saving nearly enough?
These are all scary questions, they don’t have to have scary answers.
One great way to supplement your retirement savings is by investing in buy and hold real estate. With a buy and hold investment, you purchase a property and then rent that property for a period of 4 to 6 years before reselling it, ideally at a nice profit. The wonderful thing about buy and hold investments is that you stand to make excellent ROI both on the sale of the home and via monthly rental income. If you use a property management firm to look after your properties for you, rental real estate investing can be a relatively stress-free way to bring in monthly income. That income can go directly into your retirement savings, or it can supplement your retirement if you’ve already left your day job behind.
Rental real estate investments are generally more stable and much less work than fix and flip investments, making them a great choice for many retirees. Plus, if you’d like to have a more active retirement, you can earn even more on your buy and hold investments by managing your properties yourself.
Call ZINC Financial today at 559.326.2509 to learn more about our rental real estate loans and how you can incorporate buy and hold investments into your retirement portfolio.