{"id":18934,"date":"2022-11-16T00:18:28","date_gmt":"2022-11-16T00:18:28","guid":{"rendered":"https:\/\/woodriverweekly.com\/?p=18934"},"modified":"2022-11-15T20:20:30","modified_gmt":"2022-11-15T20:20:30","slug":"securing-your-retirement","status":"publish","type":"post","link":"https:\/\/woodriverweekly.com\/index.php\/2022\/11\/16\/securing-your-retirement\/","title":{"rendered":"Securing Your Retirement\u00a0"},"content":{"rendered":"

BY ANNA & MICHELL<\/em><\/p>\n

Social Security was established on August 14, 1935, to take care of the country\u2019s elderly in their retirement years.\u00a0Today, about 65 million, or one-sixth of Americans, collect benefits and the average monthly retirement amount received in January 2022 was $1,614 per month or about $19,370 per year.<\/p>\n

This annual Social Security benefit exceeds the 2022 federal poverty level of $13,590 for individuals and $18, 310 for a family of two, but from a practical level, it is nowhere near enough to be comfortable in your \u201cGolden Years.\u201d<\/p>\n

Every adult in the workforce can go to SSA.gov to find out what to expect to receive based on their planned retirement age.\u00a0Since it probably won\u2019t be the amount you need to retire comfortably, at least you\u2019ll know how short you\u2019ll be so that you can devise an investment plan.<\/p>\n

There\u2019s a quick formula to estimate the investable assets needed by retirement to generate a certain income.\u00a0The target annual income is divided by a safe, conservative yield to determine the investable assets needed. A person wanting $100,000 annual income generated from a 5% investment would need investable assets of $2 million.\u00a0If a person had $500,000 now, they would need to accumulate $1.5 million more by the time they retire.\u00a0A 50-year-old wanting to retire at 65 would need to save about $100,000 a year for 15 years.<\/p>\n

If trying to save an extra $100,000 a year seems impossible, consider the leveraged growth available in rental real estate.\u00a0The use of borrowed funds can contribute to the yield earned by the investment.\u00a0By reinvesting the positive cash flows from the rental to retire the mortgage, the home could be paid for by retirement, providing more cash flow when it is needed the most.<\/p>\n

One of the bright spots in investments is rental real estate, which is also open to self-directed retirement savings.\u00a0Single-family homes offer high loan-to-value mortgages at fixed interest for long terms on appreciating assets with tax advantages and reasonable control.\u00a0Price appreciation alone has outpaced inflation for the last 50 years.<\/p>\n

Many Americans have participated in Individual Retirement Accounts, SEPs, 401(k)s or other types of retirement that would supplement Social Security benefits.\u00a0Many of these are invested in mutual funds, which have lost about 20% in value in 2022.\u00a0With inflation at a 40-year high, many retirees and future retirees are concerned about their income from these investments.<\/p>\n

Retirees want a safe and secure investment whose income will not be eroded by inflation.\u00a0Single-family homes, in predominantly owner-occupied neighborhoods, meet those requirements.\u00a0Home prices have experienced double-digit appreciation in the past two years and around 5% for the last five decades.<\/p>\n

\"\"<\/p>\n

Increased mortgage rates coupled with rising home prices have sidelined many would-be purchasers who want to be in a home.\u00a0Since they cannot buy at this time, the next best alternative is to rent a home.\u00a0This has added to the increased demand for single-family homes in good neighborhoods, which has resulted in increased rents.\u00a0While this isn\u2019t good news for tenants, it is for investors.<\/p>\n

Investing in rental real estate could be a way for you to increase your retirement income and grow your net worth while avoiding the volatility of the stock market.\u00a0Current homeowners already are aware of the value of homes as well as the maintenance they require.<\/p>\n

To get more information about single-family homes for rentals, download our Rental Income Properties guide.\u00a0You can also schedule a time with me to get answers for any questions you may have and find out about what is available now.<\/p>\n","protected":false},"excerpt":{"rendered":"

BY ANNA & MICHELL Social Security was established on August 14, 1935, to take care of the country\u2019s elderly in their retirement years.\u00a0Today, about 65 million, or one-sixth of Americans, collect benefits and the average monthly retirement amount received in January 2022 was $1,614 per month or about $19,370 per year. This annual Social Security […]<\/p>\n","protected":false},"author":1,"featured_media":18935,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","_pvb_checkbox_block_on_post":false,"footnotes":""},"categories":[64,38],"tags":[],"class_list":["post-18934","post","type-post","status-publish","format-standard","has-post-thumbnail","category-better-homeowners-news","category-sponsored"],"_links":{"self":[{"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/posts\/18934","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/comments?post=18934"}],"version-history":[{"count":1,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/posts\/18934\/revisions"}],"predecessor-version":[{"id":18937,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/posts\/18934\/revisions\/18937"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/media\/18935"}],"wp:attachment":[{"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/media?parent=18934"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/categories?post=18934"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/tags?post=18934"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}