Is Real Estate The New 401(k) For Retirees?

by Russ Whitney

(NAPSI)-If you think you may have to work after you retire, you have lots of company. Two-thirds of baby boomers polled in a recent survey said the cost of living is too high to truly retire and never work again. And it seems they are right: According to the U. S. Department of Labor, nearly 1 million people age 75 and older are working at least part-time.

But there are better opportunities available for boomers looking to grow their nest eggs-and keep the cash coming in after they retire-by investing in real estate.

The benefits are clear: By securing your retirement with income-producing real estate, you will receive revenue from your investments without the restraints of government plans such as the 401(k). What's more, the property is likely to increase in value while continuing to generate cash flow, allowing you to continue providing for your family-without having to sacrifice your retired lifestyle. Not only can this method offer relatively safe, comfortable means to retirement, it also provides a number of tax-saving strategies.

To take full advantage of the potential offered by real estate takes knowledge. You need to know which strategies work in what markets as well as how to recognize and respond to economic cycles, because educated investors can profit in real estate regardless of the economy.

Here are some tips to consider:

• Get to know your market. In particular, know what rent amounts are in the area so that you can calculate how much you can pay for a property to gain positive cash flow.

• Consider multiunit properties such as duplexes, triplexes and four-plexes. With a multiunit property, when one unit is vacant, the others are still generating revenue.

• If you don't want to actually purchase real estate, consider related alternatives such as mortgage notes and tax liens.

So is real estate the new 401(k)? Actually, it's the old 401(k). For hundreds of years, real estate has increased in value and afforded security for retirees. Smart investing and financial management are proven methods that have stood the test of time.

To learn more about the proven methods of real estate investing, visit www.wincorporate.com.

Russ Whitney is CEO of Whitney Information Network, Inc. (OTCBB: RUSS) and the author of the "Wall Street Journal" bestseller "The Millionaire Real Estate Mindset" (Doubleday, 2005).