Using a retirement account to acquire real estate and leverage the growth potential of tax advantaged compounded earnings is a financial planning necessity.
The average American faces retirement with an income of less than $1,250 per month! Sadly, this income is primarily provided through Social Security. Only 2% of retirees are self-sufficient with a majority relying upon family to supply all or portions of their retirement and care. It is currently estimated that an individual will need a nest egg of approximately $2 million upon retirement to be capable of independently providing for themselves. Additionally, people are living longer and medical care costs are continually rising. Unfortunately, Americans have a reputation for inadequate savings and retirement planning. Here are some of the recent statistics:
- As of 2004, the average balance in a 401(k) was only $61,000. This is actually below the 1999 levels of $64,000. In 2000, when the stock market bubble burst, the average 401(k) balance fell to $55,000 and continued to spiral down until it hit $44,000 in 2002. Workers appear to be contributing roughly the same percentage of their salary to their 401(k) plans as they have in years past, indicating that stock market moves are primarily responsible for the recent declines. Source: Dow Jones News
- The annual Retirement Confidence Survey, released by the non-profit Employee Benefit Research Institute in Washington D.C. found that 52% of those surveyed have less than $25,000 set aside for retirement, 13% have $25,000 to $49,999, and 11% have $50,000 to $99,999. Just 21% have $100,000, or more. Source: San Francisco Chronicle 4-5-05
Eighty-five million people and most retirement funds are currently invested in the stock market, yet the overwhelming majority of wealth in the United States was accumulated in real estate ventures. Still, only 1% of Americans place a portion of their retirement savings plans into real estate. This phenomena occurs primarily because most investors are unaware of who to contact and how to accomplish such a strategic tactic. Most corporate pension plans and financial institutions invest retirement money into the stock market. It is a simple and convenient arrangement for the institution. Finding appropriate real estate in which to invest retirement funds is not a service that is easily provided by a financial institution. myIRAresource was founded to assist and enable the investor to realize their financial goals.