As you prepare to officially retire, the last thing you want to deal with is the fear of losing your financial security. That's why you may already be invested in 401(k) or IRA accounts. While these can be good investments, the reality is that they are subject to the ups-and-downs of the market, depending on which assets are included in the portfolio.
In this article, we'll look at how cash flow real estate is far more beneficial than traditional investment strategies.
Unlike a yield-producing bond, a rental home provides investors with a way to make significant cash each month. Retirees who rely on the arrival of dividends or fluctuations of interest rates may find themselves in a bind if money runs tight. Keep in mind that the Federal Reserve, in its most recent announcement, reported that it would keep its benchmark interest rate at 0.25 percent until the middle of 2015 at the very least. With the federal funds rates suppressed the way they are, most traditional retirement accounts offer minimal benefits to holders.
Cash flow real estate represents a physical asset that is far more tangible than a bond, ETF package or even a note representing gold. The reality of owning those types of assets is that the investor does not have full control over them like they do with cash flow real estate. If the market undergoes a period of economic stress and losses begin to mount, brokerage firms may be more concerned about saving their reputations and bottom lines than the financial livelihoods of their clients. Cash flow real estate offers investors a great opportunity to not only be actively involved in the process, but by holding deeds and liens related to the home they can rest easy knowing they have a clear chain of ownership to their asset.
To learn more about how this strategy works, contact GreatWealthStrategies.com today.