When it comes to retirement, multiple streams of income may be the magic phrase. Perhaps you will have Social Security payments, retirement fund distributions, annuity payments or, if you are really lucky, a pension. For those looking to beef up their retirement income stream, real estate investing is another option to consider.
But investing in real estate isn't like writing a check to a mutual fund company. This one requires legwork, maintenance and perhaps a few headaches along the way. Think broken pipes, bad tenants or vacant rental units. Of course, all these headaches can be alleviated if you invest in land which requires little to no maintenance.
Investors willing to pull up their sleeves and invest time along with money may find real estate could be another pipeline toward the multiple streams of income that we all desire. Real estate can be another form of diversification.
Rental properties and land can be an excellent way to balance an investment portfolio, since real estate does not correlate highly with stock market fluctuations. Real estate, if purchased correctly and managed properly, can provide a steady stream of income regardless of economic conditions, and can appreciate in value over time, leaving a nice nest egg for retirement.
To learn more about real estate investing as a means for retirement income contact a member of the Asset Quest team!