Income Sources Could Pay You More Money Than Social Security

Income Sources Could Pay You More Money Than Social Security


0 Flares Facebook 0 LinkedIn 0 Twitter 0 0 Flares ×

According to the Omaha World-Herald, “Millions of seniors rely on Social Security to stay afloat during retirement, but those benefits only go so far in paying the bills. In fact, the average senior on Social Security today collects $1,519 a month. But here are a few income sources that could actually pay you a lot more money during your senior years.” That’s right! These income sources could pay you more money than Social Security.

The Omaha World-Herald lists three sources:

  1. Retirement savings

    The more money you save in your 401(k) or IRA, the more flexibility you’ll have to take generous withdrawals during retirement. Say you manage to retire with $750,000. A manageable goal if you save consistently throughout your career. If you follow the 4% rule for taking withdrawals from your savings, that will give you $30,000 a year, or $2,500 a month — which is roughly $1,000 more than you might get from Social Security if you’re an average wage earner.
  2. Small business earnings

    Retirement could be a good time to start a business. If you go that route, you’ll have something meaningful to do with your time, and it could work to your advantage from a tax standpoint. A successful business could even generate enough income to pay you much more than what Social Security can offer.
  3. Real Estate

    Owning real estate as a business in retirement can be a very lucrative investment. In fact, with the right income property, you could set yourself up to collect monthly rent that exceeds what Social Security will pay you.
  4. What does Real Estate Investing as a Business Mean?

    “Businesslike” investing suggests a less emotional, better organized, well thought out approach to real estate. Definitions of ‘business’ can range from describing a profession, to commerce and trade, to an actual company. All of these definitions likely influence Warren Buffett’s decision to be more businesslike in investing. It has certainly worked for him and his prized real estate investments and real estate companies. It could mean running a real estate company of some type, owning an investment (which is distinctly different from managing one), or just being more businesslike in everyday investment and real estate decisions.

    Why Should Investors Approach REI as a Business?

    There are many practical benefits of taking a business approach to real estate, including:

    • Scalability
    • Better true investment decisions
    • More profitable investment moves
    • Efficiency in organization
    • Separating personal from investment finances, assets, and income
    • Building substantial additional value within a business entity
    • Tax reduction
    • More free time

    What does Building a Real Estate Business Look Like?

    Not everyone envisions building a company and mounting an international conglomerate when they get interested in investing in real estate. So will you need an office, hundreds of staff, and have to go back to wearing uncomfortable suits again?

    Most won’t.

    However, there ought to be businesslike characteristics, regardless of size. This may include incorporation and forming a registered business entity, obtaining business credit and bank accounts, setting up a new business phone number, hiring professional vendors to help out, and having a real estate website.

    What Types of Properties can you invest in as a Real Estate Business?

    Every type of property is open to investment. This may include:

    • Single-family homes
    • Small multifamily properties like duplexes, triplexes, and four unit properties
    • Apartment buildings
    • Office buildings
    • Industrial real estate
    • Hotels
    • Retail property
    • Vacant land and lots

    What about Real Estate Investment Strategies?

    Virtually any real estate investing strategy can be formalized and systemized to create a business model. These real estate investment strategies include:

    • Wholesaling houses
    • Fixing and flipping homes
    • Acquiring and holding income-generating rental properties
    • Commercial real estate investing
    • Mortgage debt investing and note investing
    • Private mortgage lending
    • Options
    • Buying, selling and leasing various real estate related rights
    • New construction

    Where can Real Estate Investors find Support in Building a Business?

    The majority of new real estate investors may have minimal experience in starting and running a real business. Where can they find help in investing more intelligently, building a real estate business that can produce better returns, and creating more wealth over the long term?

    Only relying on out of date books and trolling online real estate forums is not suitable for investors that want to invest intelligently and businesslike. Look for an organized real estate course and proven system that has synergy with your big picture goals. Build on this by seeking out a mentor or coaching program that offers business-building help, or combines real estate and business.

    Is This the Best Approach for Everyone?

    Not all investors want to or are suited to full time investing or even running a real estate investment business. There is nothing wrong with that. Yet, all can benefit from taking a more businesslike and smarter approach to investment. This applies whether simply renting out your old home, flipping one or two houses a year, or investing capital in real estate startups.

    As the Omaha World-Herald says, Real Estate is one of the three examples that can provide Income Sources Could Pay You More Money Than Social Security.

    FREE information on How to sell your house fast

    Styl Properties, Inc. is here to help homeowners out of any distressed situation.  

    As investors, we are in business to make a modest profit on any deal. However, we can help homeowners out of just about any situation, no matter what!  There are no fees, upfront costs, commissions, or anything else.  We offer the simple truth about your home and how we can help you sell it fast.

    Give us a ring. We would love to help you understand the process and to answer all of your questions. You can reach us at 402 999.0577

    Photo by Austin Distel on Unsplash

     

Leave a Reply

Your email address will not be published. Required fields are marked *

Top
0 Flares Facebook 0 LinkedIn 0 Twitter 0 0 Flares ×