Invest Locally to Grow Your Retirement Savings

July 05, 2012

Local investments in real estate can make your retirement savings growWith all the volatility of the stock market and losses that still aren’t fully recouped from the recession, it’s time to consider other avenues of growing your

retirement portfolio. The Equifax Finance Blog explores some of the advantages and perils of investing locally with the article, “

Using Retirement Money for Real Estate Investments.”

Real estate is ideal because it diversifies your portfolio and there’s hardly ever been a better time to buy than now, as prices are still depressed by foreclosures. From there, you can wait for the market to recover to reap your reward, you can flip the home by renovating it and selling high or you can hold onto the home and rent it out while rental properties are in high demand. Either way,

real estate can spell a big return for your retirement fund.

There are a couple of tradeoffs. First, it’s unknown when the market will recover and if we will see prices rise to the pre-recovery states in the immediate future. The threat of another dip means you can lose money just as much in real estate as you can in the stock market, too. Another tradeoff is that real estate requires more work than stocks or mutual funds. It takes money to make repairs and renovations to flip a home even if you decide to do the work yourself. And even after you get everything repaired, there’s the possibility that you can’t sell the flipped home immediately and might end up having to rent it out (and then you have to deal with the liabilities and headaches of being a landlord).

All in all, real estate is a good investment for those already familiar with the markets but it has a steep learning curve for newbies. For other ways to grow your retirement fund, explore the Equifax Finance Blog.

About The Author

Read All Stories By Mitch Levinson

Mitch Levinson is the author of “Internet Marketing: The Key to Increased New Home Sales” published by BuilderBooks. He is an Internet marketing expert with expertise in search engine optimization, website development, email marketing, social media and CRM consulting services. He is known for creating effective programs that can be tracked through analytics to prove effectiveness and ROI. Mitch is founder and president of MLC New Home Marketing and MLC FlatFee Realty, as well as managing partner of mRELEVANCE, LLC, a Marketing, Communication, Interactive agency with offices in Chicago and Atlanta. He currently leads the Chicago team. A Multi-Million Dollar Sales Producer who earned an MBA in Computer Information Systems and eCommerce, he brings a unique perspective and experience to the field of real estate communications. Mitch combines the two interests in order to help home builders and developers gain a competitive advantage through the Internet and technology. When he isn’t behind a computer, he enjoys participating in sports and coaching his kids’ teams. Mitch resides in Arlington Heights, Ill., a northwest suburb of Chicago, with his family, which includes two rambunctious labs. Visit my Google+ profile.

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