Investing in Real Estate for Retirement

From: REAP, LLC. | Retirement & Estate Advisors & Professionals

A recent Gallup poll revealed that, for the second year in a row, Americans reported real estate as their top pick for “best long-term investment.” It may be an option worth considering if you’re looking to diversify your portfolio or you’re interested in a steady stream of passive income during retirement.

Do you prefer a more hands-on or hands-off approach?
Some investors find success flipping houses, while others prefer the regular cash flow that rental properties provide. Both options may be profitable investment strategies, but don’t fail to take into account the time and costs involved with each. If you’d like to invest in real estate, discussing the ins and outs of different approaches with a real estate professional may be helpful.

If you’d prefer a more hands-off approach, consider investing in intangible assets like real estate investment trusts (REITs) or other funds where you own shares of equity in a pool of property.

Some Investment Options
Investing capital in real estate is one way some maintain and grow their initial investments over time. Others may leverage investments by borrowing most of the capital to fund the purchase. This can come with more risk as well as the potential for a greater return.

Setting up a trust or LLC to own the property can be useful from an estate planning perspective. It can also insert a level of protection when it comes to liability. Another option is to buy real estate with a self-directed IRA.

Working closely with a financial advisor through the real estate investment process can help keep you on track with your retirement goals.

• Tweet