All posts by Jacob Thomas

What Makes Real Estate Investments Perfect for Elderly People?

As an elderly person, possibly in the age group of 60 who has just retired, you might like to grow your retirement funds to protect your principal against the impact of inflation. Find out about some reasons why real estate investments are perfect for people in the elderly age group. Find quotes at www.medisupps.com/medicare-supplement-plans-2019/ for supplement plans and money saving help.

You can start small

You can begin small even when it comes to investing in real estate properties. It is relatively easy to start this kind of investment, as you can purchase homes for very small up-front payments. You can have subsidized payments by having them deductible against the income that you have earned.

Financial Leverage is possible

Financial Leverage indicates how much debt you should use for funding real estate. Retirees who make successful real estate investments have their leverage optimized. With more leverage, you can make fantastic investments. Lots of investors have a particular strategy for detecting investment opportunities and optimizing leverage. It includes acquisition plans that reduce the need for cash for a project. Even if you have small retirement funds, you can enjoy the advantages of financial leverage.

You can compound money

Investments in commercial real estate generate compounding cash flows. You need a more or less long-term horizon to benefit from the same. Retirees can put down 10,000 USD on a duplex apartment that stands on a proper location. They can earn 21% every year with minimal risks over the next 15 years. Although you have to wait for several years, you can be assured of almost doubling your investment.

Inflation Resistance is possible

The value of real estate happens to increase with inflation. The value of most properties often increases more quickly than inflation as it is in comparatively less supply than other services and consumer goods. The supply of real estate properties is price-insensitive. As there is higher demand, prices tend to increase more in this sector.

You can get tax benefits

Note that interest costs for your own home or some commercial properties might be partially or completely devoid of taxation. This ensures that the funds costs are lowered by marginal tax rate. Owning real estate is also advantageous from the tax perspective as there is the chance for rental property depreciation. Depreciation happens to be a non-monetary, legitimate deduction for offsetting revenues that would be otherwise taxable. Thus, you can display that you have suffered losses on your investment on properties, and use it for lowering your own income and reducing your taxes.

Top Investment Options Elderly People Can Put their Money On

The last few decades have seen many elderly people opening up to ways to grow their retirement funds by investing on various products by banks and the financial market. There are plenty of investment options that you can put your money on, and satisfy your short term or long term goals about growing money. Find quotes for 2019 at www.bestmedicaresupplementplans2019.com/ to avoid high medical bills.

Gold

It is not new to invest in gold, and many people have been putting their money on this precious yellow metal. This is among the safest options for investment, and it can be actually advantageous during times of economic recession. It can be a perfect long-term investment option that can help you. When you invest in gold, you can use it for various purposes – such as tackling a medical emergency, marrying your child off, buying a new property etc. For the last few years, the cost of gold has been continuously rising. Even at the peak of recession, gold rates rose at 19.30 %.

Stocks

Stock investing is among the best options for investment. Market trends suggest that equity share investments draw as high returns as 26.5% in a 5-year period as compared to fixed deposits during the same time. Even when you make investments for a longer time, it can reap more returns for you. Stock investments are also better options than gold or real estate investments. Conduct research on the present and past trends about stock rates and Net Asset Value. Follow the tips and blog posts of stock market professionals regarding future prediction.

Mutual Funds

It is another famous option for investment that has got a lot of attention in the last few years. Mutual fund is a wealth pool that is supplied by multiple investors and used consecutively by a mutual fund agency for investment in various assets such as bonds, shares and stocks. Choose a mutual fund agency having a certified investment manager. You may make short or long term investments on mutual funds.  The best thing about mutual funds investments is the fact that it is possible to make small investments at a time. You do not necessarily need to make big investments in mutual funds. These days, most banks and financial institutions offer a diversified mutual funds investment product portfolio. This type of investment also tends to fetch very high returns. Keep in mind, however, that the amount of returns you can get is unpredictable and completely depends on the market situation.