Heroic Investing
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Investing Means Freedom

For many who’ve spent their youth and middle years in the workforce, retirement means freedom – the leisure to spend time with family and friends, pursue new interests and live and travel anywhere they want. Now, though, the unfolding crisis in pension plans, as well as changes to the Social Security system, can cast a long shadow over those bright expectations. But as Jason Hartman advises, sound investments in rental income property allow investors to take back control of their vision for retirement.

As we’ve discussed in previous posts, pension plan benefits in both the private and the public sectors are increasingly vulnerable, as state and private employers attempt to deal with financial shortfalls so severe that some cities have declared bankruptcy. Some employers have dealt with the problem by increasing the employee’s contributions to the system. Others have placed caps on future benefits to be paid out to current workers upon retirement. And, since many state pension plans are legally protected, some employers are cutting the health benefits that accompany the pension plan, rather than the benefits themselves.

Social Security benefits are also vulnerable. Changes to the system include raising the retirement age for collecting full benefits and limits on survivor and spousal benefits under certain circumstances. Wages earned outside of Social Security can affect benefits in some cases as well. And for various reasons, many retirees are forced to rely exclusively on Social Security checks, leaving them with a fixed income for life.

Creating an independent income stream in retirement can free you from some of the concerns about the stability of these retirement support systems. Investing in rental real estate is one of the most secure ways to create this kind of income. Not only that, owning and managing rental real estate creates opportunities for entrepreneurship that expand, rather than limit, options.

Although the housing market is stabilizing somewhat after the recent collapse that resulted in millions of foreclosures, the rental market is surging. This means good news for investors in rental properties such as single-family homes and multiplexes – housing with two, three or four units. Former homeowners who lost their houses to foreclosure may be facing a long future as renters, and many households don’t have the financial stability to begin the home buying process. Finally, apartment dwellers may choose a single family home or duplex if rents are comparable.

Large numbers of foreclosed homes and other kinds of distressed properties are still entering the market in areas around the country as these cases work their way through the courts. Likewise, the variability in real estate markets around the country makes it possible to find reasonably priced rental property outside your area. This allows investors to diversify their holdings – a strategy for protection against local problems that’s strongly recommended by Jason Hartman.

Retirement dreams depend on freedom. Rental real estate investing can create the kind of stable independent income for retirement – or for any time – that makes that freedom a reality.

The Heroic Investing Team


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