Commercial Real Estate Investing and Baby Boomers
As the goal of retirement becomes closer for those entering their fifty’s and sixty’s, reducing the risk in the investor’s portfolio has become a goal. However, those who are not considering leaving the workforce, additional options to expand their wealth may be available and industrial properties Wilmington NC are a good investment to consider. Wilmington, North Carolina and surrounding cities are increasingly becoming well known as up and coming areas that attract larger businesses with a small town feel and close proximity to the water.
Many people today are retiring later. According to Pew Research, close to nine million American workers ages sixty-five and up, report being employed at least part-time; whereas, only four million were employed at the turn of the new century. Reason being, many people continue to find enjoyment in their work.
Experts agree these people are provided with more options because of this.
The American College of Financial Services resident, Robert Johnson says, older individuals who continue to work can afford the risks associated with an asset allocation that is more aggressive; a lower percentage of bonds and a higher percentage of stocks.
Also, Johnson believes, DIY investors should stay with the stock market rather than investing in futures and options, where they are zero-sum games. Over time, the stock market becomes a positive sum game.
Commercial real estate is an alternative investment an older working individual could consider, says Origin Investments co-CEO, Michael Episcope. Alternative investments, like real estate, should account for about 20 percent of an investor’s balanced portfolio. Episcope adds, high net worth stakeholders, much of those approximately 45 or older, are lessening investments in hedge funds as well as equities while significantly strengthening their investment into the real estate market.
Commercial Real estate investment properties offer tax benefits and cash flow. Depreciation provides tax benefits through real estate equity funds. Dividends dispersed on a set schedule from real estate debt funds can provide a steady cash flow.
Another worthy note, the value of the broader stock market is not linked to values of real estate where they remain consistent.
It is up to the individual investor how exotic they choose to be, and today more choices than ever are available. However, it may be unwise for investors to tread in the waters of exotic holdings, says Michael Chadwick, with Chadwick Financial Advisors.
Going into commodities, futures, currencies, as well as cryptocurrencies has never been easier than it is today for investors. However, caution should be practiced, especially for those over 40, to maintain capital. From a risk perspective, alternatives may be logical.
Robert Johnson advises investors is to keep it simple, stupid (KISS). The best wealth accumulation method utilized is over time investments.
