Heroic Investing
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Supercharge Your Investing for Retirement

investing for retirementInvesting for retirement is not as easy as it used to be for first responders. Gone are the days when you put in two or three decades of dedicated service and then retired comfortably to whatever vision of Golden Years happiness strikes your fancy. Maybe it’s a condo in Florida or a farm in the woods. These days, to reach that idyllic setting is going to require some foresight, planning, and education on your part.

Investing for retirement in the future will require knowledge about a specific type of real estate asset that will allow you to prosper in the face of what is likely to be soaring inflation. We’re talking about income property, where you buy a single family residence and rent it out. When we say buy, we actually mean put down the absolute minimum necessary to take out a mortgage on the investment and allow the bank to foot the rest.

A basic knowledge of inflation is critical to understand the advantages of investing for retirement like this. Ever since President Nixon took the nation off the gold standard in the early 1970s, the American dollar has been declining in worth precipitously. You’ve probably noticed this in your own personal economy. A dollar won’t buy the same amount of gas, food, or anything else today that it would 30 years ago. Translate this phenomenon into a mortgage. The bank is holding a mortgage denominated in dollar value, which will shrink over the term of the mortgage while you are paying it off.

This means that, in real terms, you’re saving money and paying off less than the stated amount of the debt as time goes by. Load up on this kind of fixed-rate, long-term debt tied to appropriate real estate and get ready to build an empire.

The Heroic Investing Team

HeroicInvesting.com

Flickr / Mykl Roventine

 

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