Leveraging Real Estate for Your Retirement

These are important times for income planning. Long-term financial plans have become more and more susceptible to unexpected changes, as economies become more global and less insulated from events abroad. As a result, it is very difficult to determine whether the traditional “rules” of financial planning will continue to apply when setting objectives and plans for investment income.

Rethinking Investments
What does our future hold? How can we maintain retirement plans during these volatile and unsettled times?

Most stock market investors agree that we need to adjust our investment mix. These are unique times, and current investments can’t be called upon to match previous returns. For most investors, that means re-evaluating retirement income projections. This is especially true for those approaching retirement age. Most would be wise to look for alternative ways to utilize current investment funds, with the intention of improving retirement income potential.

Therefore, it is important to make the most of what we’ve got. Some might consider leveraging current assets to acquire additional investments. An opportunity is to recognize the long-term potential of real estate versus traditional retirement investments such as mutual funds, stocks and bonds. Real estate investments can be used to diversify the mix of sources of retirement income. The fact is, although real estate rarely sees the boom/bust cycles of many other forms of investment, it tends to be one of the most steady and reliable investments of all.

Recently many sophisticated investors have been cashing in their stocks and buying into real estate for stability and upside potential.

Once real estate is considered as part of the mix, it becomes important to evaluate the current real estate market, and determine the appropriate timing for investment. At this time, the situation is extraordinary in terms of offering real estate opportunities and financing options that were not available in the past. So it’s an ideal time to carefully consider your options, and how they fit the short, medium, and long-term situations of up-front costs, projected earnings, and retirement income.

For example, let’s say you are considering investing in an additional property to earn rental income and long term equity. As long as interest rates remain low, you may be able to negotiate a very favorable loan, borrowed against your current home equity, for a down payment on a rental property. If you buy wisely, the rental income could cover a sizable amount of the carrying costs for both the down payment loan, and the new mortgage payments. As you pay down your debt, your rent is increasingly converted into income. You can then choose to further increase your short term income when it’s time to renew your loan by spreading the reduced debt over an extended time, or continuing to pay down debt and build equity faster.
Better still, if you can project your own personal needs and interests, consider the type of home you may eventually wan to move into. After analyzing the various costs, consider whether you could use it as an income property until such time as you decide to move in. Then you can sell your current home when the market plays to your best advantage

Potential To Meet Your Needs
When considering real estate investments, don’t limit your portfolio considerations to residential properties. Diversity is a key element in a more secure portfolio. There are many commercial and industrial opportunities that are worth considering. Whatever your interest, focus on low-risk, well-maintained properties, buildings and units, with easy access to areas of prime value (transportation, shopping, restaurant, theatres, etc.).

Now Is The Time To Start Planning
No matter how careful we are in this new economy, we must accept that markets have become less predictable than in the past. However, real estate still offers some choice opportunities to outpace the average investment. The key is not to oversimplify any individual situation, but to be a well-informed investor. If you are interested in creating more retirement income for your long-term security, let’s get together soon to discuss the enormous potential of real estate investment.

Composting is All About Earth
It’s worth a moment to consider the many benefits of composting. Here are a few:

• Significantly reduces the amount of personal garbage you put out.
• Creates healthy, organic soil for your garden, plants, or lawn.
• Shrinks the growth rate of landfill and dump sites.

If you want to start composting in your yard or on your condo grounds, here’s what to do:

• Place compost bin in the sum, or allot three square feet in an open, unfrequented area.
• Make contributions in alternating layers of moist greens, dried browns, and added soil.
• Keep pile slightly dampened as it grows higher, and churn it every week or so.
• When you help yourself to composted earth, leave the rest to continue breaking down.
• Consult the internet for tips on what to include and what to avoid (e.g. avoid eggs, meat, dairy, or oily foods).

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