Are You Prepared For Retirement Without Social Security?
More than 66 million Americans haven't saved as much as a nickel for their retirement. With baby boomers set to retire in droves in the next few years, people are going to have to start facing up to reality. A recent "Baby Boom Retirement Savings Index" published by Merrill Lynch shows baby boomers are saving only 38.2 percent of what they need to maintain growth-adjusted living standards in retirement. The time to for boomers to aggressively plan for retirement is now.
(PRWEB) May 5, 2005 -- At some point in your life, you are going to have to
think about it. Sooner or later, you will have to face it. Can you honestly say
that you are prepared for retirement? If not, you are not alone.
More
than 66 million Americans haven't saved as much as a nickel for their
retirement. With baby boomers set to retire in droves in the next few years,
people are going to have to start facing up to reality. A recent "Baby Boom
Retirement Savings Index" published by Merrill Lynch shows baby boomers are
saving only 38.2 percent of what they need to maintain growth-adjusted living
standards in retirement. The time to for boomers to aggressively plan for
retirement is now.
With the future of Social Security uncertain, it is
not only boomers that should concern themselves with retirement. Social Security
was a hot topic in the 2004 election. While the election is over, the problems
remain. The system needs a change or a growing bulge of baby boomers will find
the cupboard empty. Most Gen Xers have little faith that the Social Security
benefits will even be there when it is time for them to collect.
To make
matters even worse, company-provided private retirement plans are vastly
under-funded and some are shutting down and transferring the burden to the
Pension Guaranty Agency. Recently, it came to light that a United Airlines
default could force a crisis in that agency. It is becoming clear that many
people will be receiving far less than they counted on. Both baby boomers and
Gen Xers are in need of a wake-up call. So, how do average people protect
themselves?
A disciplined savings and investment plan would be a good
idea but few have the disposable dollars to accomplish this goal. "A better
answer can be found in the booming real estate market," suggests Suzanne Caplan,
best-selling author of business and financial books, including her most recent
title, Building Big Profits in Real Estate, A Guide for the New
Investor.
"Lots of people are rushing in to real estate to make
spend-able dollars now and forgetting about the long term value of this type of
investment," says Caplan. "Gurus teach that the money earned from rental units
is cash flow when it is really operating capital, money to use to pay for
repairs and overhead if a unit goes vacant." While this reckless approach may
appeal to some, Caplan and her partner Wade Timmerson teach a much more
conservative approach to new investors.
"I see the real possibility that
investors could build a portfolio of rental units that will be there to
supplement their retirement when the time comes," says Caplan. "Properties can
be purchased with little money down, rented with positive cash to operate the
business, the mortgages are being paid off and the appreciation in their value
is the silent profit." So, how soon before these real estate investments start
turning a profit?
"Over a decade, it is very possible to acquire a six
figure portfolio and when the mortgages are paid, the cash is clearly available
as income," Caplan explains. "Then, the retiree is assured of a check coming in
each month and no longer has to rely on political decisions to determine the
quality of their golden years."
While some view real estate as a means to
"get rich quick," experts are starting to realize that real estate is a
legitimate vehicle for retirement income. If you still want to receive money in
the mail every month and not depend on getting it from Social Security, real
estate may be your answer. Interest rates are low and values continue to rise at
record rates. There has never been a better time to get into Real
Estate.
For more information, please contact Jay Wilke at 727-443-7115,
ext. 223. Books and photos available.
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Source : http://www.prweb.com/releases/2005/5/prweb236303.htm