November 16, 2007
Baby Boomers – Investment Choices For Financial Independence
The long awaited – in some cases dreaded – date has come. Baby Boomers are officially entering retirement. The first Baby Boomer filed for retirement benefits in October and per official records, the first applicant was a school teacher from New Jersey.
While Boomers are the richest generation to enter retirement, many face financial uncertainty. Protecting wealth and generating a decent return from it is getting tougher. Oil prices and inflation and present economic circumstances pose a significant threat.
Life expectancy is also rising. The average Boomer can expect life expectancy well into the mid 80s and for many into the early 90s today. With the advent of medical breakthroughs, life expectancy will rise further. Protecting that nest egg and making sure it lasts is more critical than ever.
A big question mark is if Social Security as we know it today will be around 10 years from, or 20 years from now. Boomers must look themselves in the mirror and ask if they are prepared for retirement. Investment choices will play a key role, with stocks/bonds and real estate being primary choices.
The economy has a 50/50 chance of heading into a recession. In a disinflationary environment, with a weakening consumer, both stocks and bonds look like they’re at tops rather than bottoms. A much smarter choice is investing at the bottom of the financial cycle, with tax benefits.
Go zone real estate investments are well worth considering due to their 50% depreciation writeoff that can be taken in the first year, back 5 years or forward 15 years. The prices of real estate are beaten down. In areas such as Biloxi, the casinos are booming. Investors can purchase cheap real estate in a booming area, obtain significant tax benefits for the next 15 years and also earn positive monthly income.
Lets look at the benefits of go zone real estate. First, you receive significant tax credits to reduce your tax liability for 15 years forward, 5 years back. Next, you’re buying in a market that has bottomed and is now experiencing an economic resurgence. Finally, you will get monthly positive cash flow and reduced taxes. Best, we manage the entire process for you.
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