5 Real Estate Investing Ideas to Set Up Retirement – The aspect of making sure you have enough money to comfortably live in retirement can be overwhelming and even a little stressful. If you feel like this when you think about making sure you have plenty of money for retirement you’re definitely not alone, many people feel this way.

There is good news, with the right planning and focus there are some things you can do to make living comfortably in retirement more attainable.

Rather than solely focusing on saving up a mass amount of money that might not be enough by the time it comes to retire, you can take a more inflation-proof approach by focusing on generating income during that time of your life instead.

Many financial planning experts will tell you that having multiple income streams now and later in life is a great plan for living comfortably. This is not just the traditional collection of Social Security and a 401(k) account that you plan to tap into. It is a passive income stream during this time that is making you money while you do very little to no work at all. One of the most reliable ways to do this is with real estate investing.

Here are five ideas for real estate investment to help you with a comfortable retirement

Buying into a dividend-paying REIT

A REIT is a real estate investment trust that can be a great way to invest in real estate without having to own an actual property and do all of the work. There are about 200 different public REITs available to invest in that offer a wide range of different real estate types for investing.

One nice thing about this avenue of investing is that these types of companies will often pay higher than average dividend returns which makes them an amazing option for retirement portfolios. Just make sure that you keep in mind that there is a risk to any stock investment with a correction or crash in the market.

Purchase a rental property

Rental real estate is seen as one of the most lucrative ways to have passive income. If you are knowledgeable and purchase a rental property properly it can result in positive cash flow from the beginning. It is also an investment that can keep up with inflation and retain its value when taken care of well.

A rental property does not have to suck a bunch of time out of your life or money for repairs away from the profit. With the right purchase and the help of property management, you could be making anywhere from a few hundred dollars to thousands every month.

Mortgage notes

This is a lesser talked about but additional diversified means of income. Rather than owning or leasing out a property you act as the bank that is lending money to someone who is purchasing a home. You essentially are a mortgage owner and the homeowner is paying you back with time.

There are a few different ways in which you can own a mortgage note. You can either do so through private lending, creating a mortgage note on a property you own or purchasing existing mortgages from those who are selling them.

With this line of investing there are some risks and due diligence that you need to make sure you are completely knowledgeable of, including the possibility of foreclosure if the borrower is unable to pay the mortgage.

Pay off your own home

Planning ahead so that your mortgage will be completely paid off by the time you plan to retire is a great plan on being able to put a large expense elsewhere later in life.

Freeing up a large chunk of money that is put into your monthly mortgage payment for other things is a great goal to have when you hit retirement. It is a great way to release a large financial burden later in life.

Turn a Retirement Home Into a Vacation Rental

If you plan to purchase a smaller more manageable home in retirement, it could be a smart move to purchase it now and use it as a rental until that time comes.

Vacation rentals are in high demand and in the right location can bring in a premium nightly fee that could make you more money than a traditional rental. You could use the rental money to help pay down the mortgage and maybe even pay it off by the time you are ready to retire there.

An added bonus: you can block off a chunk of time and use it to vacation yourself.

For more information on purchasing a home in San Tan Valley and surrounding areas, please contact me at any time.