Without question, the most beneficial aspect of setting aside money in a 401K is to take advantage of matching contributions from an employer. There are few other ways to double your monthly contributions in such a short amount of time. But should those matching funds disappear, you reach your annual contribution limits, or you change jobs, you may find rolling your funds into an IRA (individual retirement account) is the better investment vehicle for you.
IRAs offer much more flexibility in investment options than 401Ks do, and it’s a retirement account that’s under your control. To some degree, you have that option with a 401K, but not to the extent you do with an IRA. While having more options increases risk, it also affords you the opportunity to fine-tune and select investments that interest you and those for which you have enough background to make sound decisions.
Types of investments that have proven track records include:
Property management companies simplify owning rental properties because they provide services for both owners and tenants in local and distant locations. They can step in at any stage of a transaction, from pre-purchase services to leasing and post-move-out cleanup.
In terms of payback, real estate has been appreciating about 5 percent per year, although rates vary across the country at any given time. On a monthly basis, the property will return a positive cash flow to offset holding and operating expenses.
Before planning your retirement investments, it’s always a good idea to consult with your tax or investment advisors to learn what best options may be, and which plans will benefit you most. Reaching out to a real estate investment professional will give you answers to questions you may have about property acquisition, financing, leasing and maintenance.
JWB has over 10 years experience managing turnkey rental property investments. We have a consistent approach that delivers steady cash flow from our clients investment properties. Curious what your cash flow could be from one of our rental properties? Try our cash flow calculator or contact us to learn more.