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Planning for retirement is a daunting task, which only gets more complicated as you get older and closer to retirement age. Depending on the state of the economy and your financial situation, betting on your financial security 20 or 30 years into the future can also pose a number of risks.<br>
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Introduction Planning for retirement is a daunting task, which only gets more complicated as you get older and closer to retirement age. Depending on the state of the economy and your financial situation, betting on your financial security 20 or 30 years into the future can also pose a number of risks.
1 WHAT IS REAL ESTATE RETIREMENT
REAL ESTATE RETIREMENT Real estate retirement is a term that refers to those who are able to retire and live off the earnings from their real estate investments or home equity. In this way, with a few lifestyle changes, you can effectively retire and continue to live in your own home, or you can downsize and opt for a residence that is more affordable and manageable
Here is a breakdown of how to leverage your home equity to maximize your financial security through retirement: 1. Tap the equity in your home If your mortgage is paid off or almost paid off, you have a great deal of equity tied to your home. In this case, you could tap into this equity by selling your home and downsizing to a more affordable residence.
2. REITs Real estate investment trusts (REITs) are securities that trade on the stock exchange. These trusts can include both residential and commercial properties, as well as mortgage-backed securities. These securities are quite similar to mutual funds, except they focus on property ownership instead of stocks and bonds.
3. Direct ownership Although REITs do have their advantages for those looking to mitigate the risk of their investments, direct ownership can produce much higher profits when operated properly. Instead of investing in a portfolio of properties, you can buy one property and use it as an income source.
4. Leverage equity for real estate investments If you are comfortable with taking on more financial risk, you could even leverage the equity in your home or business to make more real estate investments.
CONCLUSION Fortunately, for those who own their home — or those who have paid off most of their mortgage — there is a world of possibility for you to plan your retirement with confidence.In fact, you can even leverage your home equity to retire in comfort with the financial security you need to ensure you are happy and content through the next chapter of your life.
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