Many people in the workforce have their sights set on retiring in their early fifties, before the average retirement age. However, while this is possible, it takes a lot of planning and careful financial work to ensure that life after retiring is just as comfortable as it is now.
A growing 401k or IRA account can help get the foundation of your retirement funds. Still, to live comfortably and spend what you are hoping for later in life, you will need a passive income that is usually greater than an average 401k or social security withdrawal. Having separate investments in real estate can help bring in a passive income and a more significant amount of money than a typical retirement fund.
Utilizing real estate investments can be the shift between an average retirement to one more suitable for your future endeavors.
Figure Out a Comfortable Income
Once your debt has been cleared, it is time to look at your expected expenses and income. Retirement is about monitoring your income as you are out of the workforce and reliant on your past investments.
You’ll want to assess what you pay for day-to-day and month-to-month. This can include rent, mortgage, utilities, groceries, and leisure activities. If you plan on traveling during your retirement and selling your home, these numbers may look different if you live in an RV or hop from place to place. However, no matter your retirement plan, you must understand its costs.
When looking into investing, you will want to find something with a passive income. This will act as a monthly income and keep money coming in that you can use towards the mundane purchases and the fun stuff down the road. Compared to other types of investments, real estate investments can bring in more monthly income as you deal with more significant, more tangible, and less risky acquisitions.
Choose Between Investing Independently or Through a Firm
You have gone through your current income, learned what you need to survive and live a fulfilling retirement, and have chosen to do real estate investing. The next thing to consider is whether you will invest in real estate independently or through an investment firm.
Many people may invest in real estate themselves to keep control of their investment and the properties they choose. While this works in providing a passive income over time, the responsibility of being a property owner is also added to the list. Repairs, finding tenants, upkeep, and other duties can take away from the lavish lifestyle you were hoping to live through this investment.
Investing in a real estate firm can not only take those responsibilities off your shoulders but also lead you down a path that will earn you more money in the long run. Your investments in real estate can be put to better use, and you have the resources of an experienced and knowledgeable firm to help you earn more for your investment.
To make more through your retirement, keep investing. The more you invest in a property or multiple properties, the more you will get back each month and each year. You don’t want to close yourself into a box of one estate and discover halfway through your retirement that you could’ve been earning more.
After paying off your debts, securing your income, and choosing an investment route, don’t let your investment motivation run out. If your goal is to earn more, invest more. However, ensure you are keeping your expenses and necessities in mind. Investing through a firm can show you where you can invest more and what it looks like for you.
Investing in real estate can look different for everyone, but in the end, everyone has the chance to earn more during retirement when innovative thinking and sound investments are made. If you are looking to invest in real estate and don’t know where to start, contact us here at Morton Capital, and let’s get you earning money.