Retirement and Lending
As retirement approaches, the focus for many investors shifts towards generating stable, passive income while minimizing risk and management demands.
Mortgage investments have emerged as an attractive option for retirees, offering a unique blend of stability, security, and simplicity. This article explores why incorporating mortgage investments into a retirement portfolio can be particularly beneficial.
Do you have a retirement plan?
United States will experience a change of its age structure in the coming years. It is expected that between 2012 and 2050, the older population will almost double from 43.1 million to a whooping 83.7 million, causing more and more people to rely on our weak infrastructure.
What is retirement exactly?
Retirement is the point when a person stops employment completely. Whether it’s forced retirement, by illness or accident, or voluntary by age of 65, we believe that you should have a solid retirement plan.
Why is it important to plan your retirement?
Every American worker deserves to fulfill the dream of a secure, comfortable retirement. Because we’re living longer and healthier lives, we should expect to spend more time in retirement than our parents and grandparents did. As we get older, it gets harder and harder to go to work.
Most people in the United States do not have a retirement plan in place.
How can a private mortgage investment help retirement?
Funds that are in the bank or in other retirement accounts generate very low monthly income. In order to maximize the earning potential, invest in a private mortgage to earn 8-12% return on your investment.
CDs, IRAs and 401Ks
All mortgages are year balloons with interest being paid monthly. Investor loans with 1 year maturity gives you the same liquidity as a CD or passbook account. Loans may also be re-sold to create liquidity in an emergency. But with returns as high as 4-5 times CD interest income. Most people like to keep money out and earn the income. Example: on 100K CD you might receive 2-3% returns, giving you income of $250 on its best return. A 100K mortgage will earn the investor $1,000 per month. A big difference for someone living on interest income.
Mortgage investments are fully eligible for CDs, IRAs and 401Ks. IRAs and 401Ks accrue interest income tax deferred. Mortgages are a great income vehicle for retirees.
