San Diego Homes

Using Real Estate for Retirement Planning

real estate retirement planning

Are you using real estate as a part of your retirement planning?

If you’re like most people, you’ve been saving and working in preparation of the day you can retire, and finally take it easy. We work most of our lives, and being able to retire is one thing that keeps most people going after years of exhausting work.

Nonetheless, the current economic collapse has many people changing their retirement plans. While some individuals are putting off retirement until the market gets stronger, others are moving ahead with their retirement strategies. Simply changing some of their plans to adapt to the present economy.

For most individuals, retirement planning and housing market go together.  What does the current real estate market mean for your retirement plan’s future?

When dealing with retirement, many individuals chose to sell their properties and buy smaller places in order to eliminate needless space, conserve utilities and save money. Downsizing is a wonderful thought, and now is a great time to sell your home.

When you decide to sell your property, you’re left with figuring out whether or not to buy or rent your next home. When looking for a brand new place on the current market, it is crucial to determine if it’s a good time to purchase a new house. In terms of planning for retirement, downsizing and relocating to another city should be meticulously planned to ensure that you would be able to afford the living expenses and the life-style of your new life after retirement.

If you are currently planning for  retirement that’s off in the future, then you might have thought of using your IRA to purchase a new house as a funding opportunity. Although now is a good time to be investing in actual estate, you should fully understand the foundations of your specific retirement account before you withdraw cash with the intentions of purchasing a brand new house (or anything for that matter).

Whenever you withdraw money out of your IRA account, you might be often subject to taxes and penalties. In fact, utilizing your IRA in the wrong manner can end up with the disqualification of the IRA all together. Because of this, before you make any decisions about withdrawing cash out of your IRA to purchase a home, make sure you understand what you can and can’t do with your IRA account, along with any penalties and taxes.

When planning for retirement be sure you understand the current real estate market and national financial system, and make sure that your retirement plans can be achieved in the current market.  At the end of the day, you need to examine your retirement goals and then fix your plan to satisfy these  goals in the changing home and financial markets.

Read more: http://www.businessinsider.com/retirement-planning-actual-estate-2013-1ixzz2Q6XXHD00

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