When to Retire?

Land Banking Lady Improving Your Wealth

by Gina Lynell Smith

 

When Should We Retire?

Welcome smart investors, financial savvy, and baby-boomers!

We are all watching the economy today looking for an opportunity to improve our wealth. Our goal, at my corporation is to bring the most updated information to our community. Knowledge about our options is the best way to increase our wealth. We look forward to assisting you in living a better lifestyle, building your children’s or grandchildren’s college fund, or setting up a retirement plan that won’t leave you as a burden on your adult children.

 

I have stumbled upon a great long-term appreciation strategy that is safe and gives us the freedom of self-directing our funds without any penalties or loss of benefits. Sadly, the stock market and money market funds, even with a financial advisor, are not giving us enough money to pay the advisor’s fees and advance us ahead of inflation to create abundant wealth. 

 

Most people do not know that they can rollover their IRA/401k, 403b or other retirement plan into Real Estate. The defined benefits plans do have restrictions of movement, but they can be set up to include a SEP or other IRA, and they can be rolled over into a self-directing IRA if done properly. The following excerpt is just a generalization of what can be done. It is my posted response to “The Wall Street Journal – Retirement Debate,” article “Keeping Retirement Plans on Track When Stocks Fall.” It was about a man in his 60’s who had $400,000 in several assets, and he was concerned about when to retire without incurring a loss. Here is my response:

 

Land Banking Lady

06/12/2008, 01:25 pm

My suggestion to John or any of us baby boomers is to first consolidate all funds and retirement plans into a self-directing IRA. This eliminates most of the difficulties of having such diversified assets. Next, sadly $400,000 is not enough to retire–Most care facilities cost an average of $5000 per month, which means you will need a savings of $2,000,000 in a T-bill or similar that will give you 4% interest earned. This amount will net after taxes $5000 per month. Thirdly, in order to quickly change that $400,000 to $2,000,000, John will have to live off his low-social security for five to seven years or continue to work while John’s self-directing IRA does some safe Land Banking that will appreciate at 38% or higher, and then he can live the good life! He can trade his self-directed IRA for a 4% t-bill or similar, live off the $5000 per month net interest, and leave a legacy of $2,000,000 to his children to use for their retirement.

Obviously, there are some things to consider in the wake of the bank failure of IndyMac, but one benefit is that real estate owned has a Deed of Trust, which can be sold. The answer to the question, “When should we retire?” is when we have enough saved so that the monthly interests is enough to pay taxes and live the same or better standard of living as we have now.

I give workshops on “How to Rollover Your IRA/401k into Real Estate,” and I have a matrix on how to consolidate your retirement assets. Call me at 925-426-1120 or Email me.

Thanks! and Happy Living Wealthy!