Boomers Look To Real Estate To Afford Retirement
Source: bisnow.com | Re-Post MNM Partners, LLC 7/7/2017 –
As many as 10,000 baby boomers retire daily. Members of this generation are increasingly looking to real estate to help solve their retirement situations.
Many boomers have realized their retirement plans are not sufficient and have turned to alternative investments, such as real estate, to compensate. About 30% of baby boomers have no retirement savings and one-quarter have less than $50K saved, according to research by GoBankingRates.
These boomers, who were born between 1945 and 1964, survived the Great Recession and were raised by parents who survived the Great Depression. They have been employed in a world where pension funds are growing less common and employer-led 401(k) retirement accounts are increasingly more common.
Paying For Predictability
“The alternative investment world doesn’t become more popular until it’s time for people to retire,” The Entrust Group Director of Professional Development John Paul Ruiz said. Entrust provides services for self-directed individual retirement accounts, which, unlike typical IRAs, allow for alternative investments like real estate.
Retirees typically want their investments to become more stable before making withdrawals.
“Many of our clients think, ‘What other types of investments can I hold in my IRA that are outside the securities world because I can’t handle another crash?’” Ruiz said.