Invest In Real Estate in Mid-Life to Achieve a Worry-Free Retirement

As part of the large cohort of now-retired, post-war baby boomers, I’ve thought about the notion of crossing the ‘retirement’ bridge, but the thinking stage is as far as I’ve gotten. I still love working because I enjoy being productive and challenging myself, though I’ve cut back relative to years spent working in corporate positions.

Although not ready to retire from work life, I’ve always been interested in a financially secure future like my nonagenarian parents enjoyed. Hence, the topic at hand: how to financially prepare for old age or whatever level of retirement you want if you haven’t inherited or saved a massive amount of money. 

According to  Investopedia, you’ll need 80% of your pre-retirement yearly salary to live comfortably into a ripe old age like my parents did.  If you are a homeowner with a mortgage, that estimate might be do-able if you manage to avoid unforeseeable home improvements and repairs, a host of bills (e.g., utilities, health insurance premiums, property and car insurance, taxes, etc.), and importantly, if you don’t incur costly medical expenses as you age.  However, if you do encounter age-related health problems, higher-than-expected home or college expenses for kids or grandkids—or  if you plan to travel or go back to school yourself for the sheer joy of learning—you may need far more than that 80% ‘pre-retirement annual salary’ figure.   

So what are your options short of working till you drop? My husband and I chose to create passive income by investing in real estate in our 50s—specifically, rental properties that generate monthly income, and concurrently, pave a path toward financial security.  With the help of our son Ryan Boykin, Cofounder/Principle of Atlas Real Estate, we dipped our toes in the water with one rental property and the success we experienced gave us the confidence (and extra income) we needed to invest in additional properties.

Since we began investing in real estate about 18 or so years ago, all of our holdings have been managed by Atlas Real Estate’s experienced property managers, a tremendous, low-cost service, especially when considering the expertise needed to manage and maintain properties. Atlas property managers keep our rentals consistently occupied; hence, they produce passive income every month. 

Passive income through real estate is an invaluable tool in the retirement toolbox, yielding regular monthly revenue and a high return on investment, particularly when buying the right property in a strong market or in the path of development and committing to a long-term, buy-and-hold strategy.

I’m a proponent of a diversified investment portfolio since diversification helps offset exposure in any single position and helps protect you from wide swings in key sectors, especially during periods of economic uncertainty. Our real estate investments have helped diversify our portfolio, yielding a high rate of return for nearly two decades.

If you’re serious about paving a path to financial security and creating generational wealth, consider investing in real estate during mid-life rather than waiting until you reach your 60s when most folks begin to seriously consider retirement.

 Please visit Atlas Real Estate for more information.