The Real Smart Thing To Do With Your 401(k) Is To Invest In Real Estate

We let the younger, up and coming generation make mistakes and we watch, vigilantly, to point them out to them…to laugh at them…but really so we may learn from them. They think they are learning from us? Hah. No, elders learn (also) from the babes.

Millennials Are Doing 3 Things Wrong With Their 401k Investing…Poor Baby-Adults.

Check out this trickle from the top-down:

  1. NOT having one.  Read more here.
    • Many millennials are opting out of starting a 401(k). It’s easy to imagine how that’s possible. It’s called the try-it-out-20’s. If I’ll be at this job for an unknown, maybe shorter, amount of time I may not see the point of starting another retirement plan to deal with.
      • It’s like a couch you don’t want to carry home from a good garage sale when you know you’ll be moving…you know, some time.
        • That’s the reputation that millennials have in jobs: they don’t stay. Let’s argue that why should they? Finding a niche can take time, and it’s appropriate to give your career room to breathe.
          • It’s known that the silent generation, or traditionalists as the more flattering title, want a Legacy. This would coincide with a 401(k).
            • The baby boomers want a Stellar career, and work really hard, generally. Probably work even though they are collecting retirement. Perhaps they didn’t have or didn’t have a 401(k) soon enough…trends skip a generation.
              • Gen X want a portable career…with meaning, so they get globalization and want to be the bosses with their millennial minions.
                • And the Millennials prioritize jobs with meaning, but also this other thing: parallel careers. If only Millennials would put as much of that multitasking into investing…
  2. Not investing appropriately. Read more here.
    • A generation that is more liberal than all the others socially is more comfortable calling themselves conservative investors.
      • It’s like millennials trust cash more than a 401(k). 39% of those under age 30 chose cash as their preferred way to invest the money they don’t need for at least 10 years.
        • This generation is three times more likely to have cash instead of investing in stocks.
          • This love of cash will really freak out the 65% who DO have a 401k and notice that 80% of their account balance is in equities, says an ICI/EBRI report.
            • They might sell when they see the expected, natural yet extreme losses that can happen over the supposed long life of the investment. That brings us to point #3.
  3. Pulling money out of 401(k) Plans Prematurely. Read more here.
    • Fidelity discovered that 41% of 20 to 39 year-olds were cashing out their 401(k) after leaving their job.
      • This is the long-term equivalent to shooting yourself in the foot. And isn’t recommended BECAUSE….

One Smart Thing To Do with Your 401(k) Is to Put The Money Into REAL ESTATE

Now – wait a second. You aren’t allowed to invest a 401(k) into assets. That’s right. So, turn your 401(k) into something else.

This guy, Larry Breen, sees the secret. Invest your 401(k) into Real Estate, IF you first change it to a self-directed IRA. Because your minimum distribution included real estate and rental income you can shave some off the top to put into assets, that also make money perhaps through renting and/or flipping…the profit rolls into your account, IT DOES NOT DIRECTLY GO TO YOU. It goes back into your account, and that why it’s called real estate investment, not real estate pay out.

The theory is you can turn a 50,000something investment into a 70,000something while ALSO pulling returns on that 20,000something…making yourself more and more money.401(k)

Normally You Cannot Use A 401(k) for buying property…of course because that would be a profitable option. Of course the thing that makes sense isn’t easy. But here is the secret.

You can roll it over into a IRA tax-free account and use the proceeds to invest in real estate, although you cannot actually manage your own property in that case. You’d need a property manager – less work for you.

RECAP / The Old Adage Is True: You Have To Have Money To Make Money

Most people have money…that they cannot touch…in a 401(k). Increase your 401(k) by turning it into a self-directed IRA, buy the property, hire a property manager (consider this an investment into your 401(k) even though it’s out of pocket), pull the extra income back into the account and you have treated yourself like your own employer putting 4 or something% into your account monthly…

This is how to be a old millionaire…or a start.

If you don’t get this at all…don’t worry…start here, click to learn: 401(k) For Dummy’s.  

Work Smarter Not Harder Click Here to Get Started

Bend Toward South Bend, Indiana, for Retirement Prospects

They call this state the “Crossroads of America,” and for good reason. Indiana’s a hometown, a go-to, a throwback, a place where time seems to stand still. Urban legends exist there; folk tales reside within the cities of this state, but here’s the big question — is it necessarily a great place to retire in? Try South Bend for starters.

Why South Bend, Indiana, Ranks Up There for Retirement

Bear in mind this important fact — it’s not just about the small-town feel when it comes to retirement cities. Think about fixed incomes, for instance — or maybe even limited resources to explore and redefine yourself. After all, if you’re looking to retire, you’re not looking to do a whole lot of moving around and spending cash.
Aside from the lack of a state tax on social security — which automatically makes it a benefit to you as a retiree — South Bend is all about university life and entertainment at minimal cost and maximum convenience. It’s generally fun living in this town!
Think football, for instance — as in the Fighting Irish of Notre Dame. Loving the football makes for a great day of the season, not to mention you get free campus tours of the legendary university, if that’s your deal. I’d say it’s legendary specifically because the campus does draw quite a few prestigious entertainment acts, so you most likely will be on the lookout for those events as you enjoy your retirement.
You could be fortunate to land a rent-to-own, or maybe a zero-down mortgage, and if that’s the case, jump on it. Why?

South Bend Brings It for Retirees

It’s a total touchdown for retirement. Sure, the population’s up there, but that’s what retirement should be all about: fellowship, fun and friends all around you. When you’re retired, you’re not just relaxing; you’re living. And you’re living proud.

Do We See a Lot of Retirees at the Kentucky Derby? Oh, Yes!

Retirement towns promote party-time when you think about it. Retirement’s all about celebration. You’ve lived life and worked hard, and now it’s time to tear it up on the dance floor, per se — or at least in this case, the Kentucky Derby.

Why the Kentucky Derby? Louisville, Kentucky, Is Where All Retirees Seem to Want to Golouisville kentucky retirement

And for good reason.

Aside from the fact that there’s no state social security tax and a partial pension tax — a great benefit to retirees — attraction and entertainment is the name of the game for this good ol’ town filled with great homes to buy and settle down in.

For starters, there’s a staggering 18 parks available in Louisville, making for ample options for retirees in strolling during a nice warm summer afternoon or evening. All parks were designed by Frederick Law Olmsted, the same designer of New York’s Central Park.

You just might be in line for a trip to the Louisville Slugger Museum if you happen to be a lover of baseball in your own retirement pastime with the American pastime of peanuts, cracker jacks, gloves and Big League Chew. Here’s where the real entertainment crosses the finish line — with the Kentucky Derby. Yes, Louisville is home to the iconic race of old at Churchill Downs racetrack, and you better believe that many call it a thrilling day there in fellowship watching the horses pound the dirt.

Retirement Should Indeed Be Fun

What couldn’t be more fun than that? That’s why the town’s such a big draw for retirees. Keep that in mind. Because there’s only so much you can do stuck in the house as you’re relaxing watching the Kentucky Derby on the television. Try getting to see it in real-time, in person, with your friends. That’s the best kind of retirement — living the life in Louisville.

Looking for a Retirement Town? Try Bangor, Maine

Getting away from a life lived in hectic disarray with kids, jobs, 401Ks and home improvements to advance the return on investment ultimately seems like the true goal of retirement, so it’s no wonder that many would look at certain cities out there catering to that demographic. What would make for the best retirement town, though, for just a place anyone can settle down in and breathe the fresh air? Think east coast. Think way up there where time slows down to a crawl. Yes, it’s a small town (and some might think that’s tried and trite), but this particular city’s so much more.

Bangor, Maine: A Unique Retirement TownBangor retirement town

The quiet’s all good for a retirement town. Don’t get me wrong. Sometimes it can drive a person stir crazy, though, hence why fellowship and good times often will retirement that much sweeter. Bangor, Maine, brings that mentality to a retirement town in great fashion, and not just because the home prices and mortgage payment medians are so low.

You’re surrounded by nature here in Bangor, Maine. If you enjoy the cold, hot chocolate and sweaters out in a log cabin, Bangor could be the ticket of a spectacular retirement town. There’s something better to enjoy, though, when it comes to this retirement town:

Try music. Music everywhere. Bangor’s actually known for their annual 3-day American Folk Festival. The best part? It’s free. This is the true benefit for retirees looking for a spot-on retirement home all because of the fixed-incomes. You can live and enjoy life without having to shell out a lot of money.

While state taxes on pensions do exist, you’ll benefit from the lack thereof regarding social security, so this might be a pretty decent go for you. Just one thing….

You Might Want to Get Used to the Snow

Maybe you like hockey, sledding and skiing? If so, more power to you. When looking for a retirement town, if you’re in the real estate market for those sorts of things, head to Bangor, Maine. And enjoy that hot chocolate while you’re at it.