Wiser Wealth: How to Use Investment Real Estate to Prepare for Your Retirement


There are a lot of common steps people take to plan for their retirement. You probably already know to put aside money in stocks, bonds, and funds to have for down the road. However, one strategy that you might not be familiar with is utilizing investment properties to build your finances over time.

Dwight Kay of Kiplinger shares some advice on how to do this and exactly what kind of investments you should be making. You don’t have to be a landlord collecting rent from tenants each month to get a payoff on properties. If you know what you are doing, you can start generating extra income with minimal work required on your part.

One option to examine is real estate investment trusts. These are publicly traded companies who deal in buying and selling real estate, meaning they handle all the hard work while you simply invest in the company. If you already invest in the stock market, this would be a very familiar way of handling things.

Another choice to consider is qualified opportunity zone funds. These basically function by allowing you to invest in an area that is viewed is neglected, with the hope that investments from people like you will stimulate that area enough to help it thrive. In return, any appreciation on the investment becomes yours once your part of the fund is dissolved. That will take years, but your efforts to help the community also come with a tax break on any added value you wind up with.

Once you start looking into it, there are actually a good number of real estate investments you can make. While it is not a decision to make casually, with proper research or the guidance of a qualified financial planner, you could absolutely find a selection that could benefit your retirement plans.

In addition to real estate investment trusts, accredited investors can also consider a real estate investment using a Delaware Statutory Trust (DST). “A DST, according to Fred Hubler, Managing Partner of Creative Capital Wealth Management Group, “is a business trust created under Delaware law that can be used in a wide variety of business settings including pass-through entities to hold commercial real estate assets for investors.”

“Upon the sale of a property in a DST, says Hubler, “accredited investors have the option to pay any capital gains tax or defer those capital gains tax by participating in a 1031 exchange. This allows a passive investment in a larger property but allows the investors to treat the investment as real estate.”

Types of DST’s run the spectrum from multi-family, storage, mobile home parks as well as warehouse and distribution centers. The best part of these DST’s is the ability to invest without stock market risk.

For more real estate investment options to consider for helping with your retirement, read the whole article from Kiplinger by clicking here.


Fred Hubner

Want to know if you’re on the right path financially? Fred Hubler’s Second Opinion Service (SOS) is a no-obligation review with Creative Capital Wealth Management Group‘s Chief Wealth Strategist. It’s simply not possible to get a reliable second opinion from the same person who gave you the first one. Click here to schedule an SOS meeting.





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