Retirement planning = real estate + stock

I thought that this page on IRAs was very interesting. They have a lot of information on rollovers and things but what I really liked were the examples (find them at the bottom of the page I linked to). These downloadable PDF files show what would happen to a 55-year-old with a million dollars in a taxable retirement account (that person would run out of money at 84).

Considering that many people live longer these days (my grandfather is 95) it’s no wonder people can’t retire at 55. From watching my grandfather, I think I’ve realized that a good retirement comes from stocks going up, real estate (rental income and appreciation), and not spending money. The last one of course is the hardest for someone who likes to travel as I do.

Anyway, this link above comes from a retirement planning company. I’ve never tried their services, but I do like their informative website.

And I want to add that you can own real estate in your IRA – it’s recommended, especially if you can make the purchase without taking out a mortgage thanks to some complicated laws from the IRS (who would’ve guessed that the IRS would make our retirement planning more complicated?).

The article says that real estate works particularly well in a Roth IRA thanks to the way the Roth IRA avoids taxes. So you could have rental income (not taxed) and sell the real estate any time (no capital gains tax).

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