So the BP oil disaster has created a lot of news in the past few months, which it should. The utter disaster that the oil spill has created is one that has never been seen in the United States. Along with that, the news has cast a wide net over all major media outlets and networks, almost shutting out any other news of any kinds, save for the vuvuzelas of the World Cup.
The oil spill will create such economic fallout for already economically stricken areas like the south east and the Gulf coast. This is a major issue for housing markets that are still not bottomed out. Take out the fact that over $5 billion in property values are expected to be wiped away, couple that with oil all over the beaches for years, and we have the makings of a true economic depression for a large portion of the United States.
People ask how some can be worried about home values at a time like this. But the truth is that a majority of Americans have their retirements wrapped up in the equity of their current homes. With expectations of selling their homes, moving to a retirement location, and spending their golden years enjoying their days as they see fit, this dream vision is being clouded by the black crude erupting from the bottom of the Deepwater Horizon pipeline.
So what is the fix? Well, the age old mantra of not putting all your eggs in one basket really applies here. Expecting one piece of property to be the sole provider of one's retirement was shot out of the water back with the 2008 financial collapse.
There are two ways to look at it: If you have retirement funds in your IRA or 401(k), you can invest your IRA or 401k into the deepest discounted real estate in decades. It requires a little know-how, a self-directed IRA, and potentially a non-recourse loan. Or you could have enough to buy a property outright.
This will provide you the ability to have a steady stream of rental income, growing property values, and a guaranteed wealthy IRA and retirement, once the economy rebounds. Or you can be like everyone else and be worried every day that your sole retirement vehicle is depreciating again.
I recommend the first option. Learn how to invest your IRA or 401(k) in the cheapest property prices in decades. Then be sure that you can retire when you want and how you want.
Paul R. Whitacre is a managing partner at WealthyIRA.com. The vision and passion of WealthyIRA is to teach everyone to invest their IRAs, 401(k)s, and other retirement accounts in the deepest discounted Real Estate in decades. Check out more on how to invest your IRA in Real Estate at our WealthyIRA.com blog and follow us on Twitter at WealthyIRA. Email Paul here. |
