I feel Bad for Baby Boomers!!!!!
As an investor I feel very lucky to buying lots of long term rentals at ridiculously cheap prices. The old adage of “The harder I work - the luckier I get” is so true.
We continue to build a decent pipeline of deals, we produce safe and secure rentals and life is great. In addition our network of private investors is growing as our track record and reputation grows. I love creating win-win situations for Investors.
Then I sit back and think about the baby boomers who are on the door step of retirement. The list of headaches I see is long and none of them are their fault but they will feel the greatest pain. Lets just review a few of the headwinds.
Stock market is tanking and people are losing faith which means 401K, IRA’s, etc will be worth less and potentially a lot less. Which is not a good thing.
Savings rates are a joke especially when you add on the realities of inflation both short and long term. They are actually losing money every month!!!
The value of the dollar is not going up as we print more money.
Gold is spiking but this parabolic move is certain to produce a nice downside surprise at some point. Truth be told I road the wave with lots of Silver from an average of $8 and sold at $38 (and bought a couple of houses with proceeds). Remember Gold takes the stairs up and the elevator down so it will be nasty when it comes.
This leaves real estate but what can a baby boomer do that has a full time job, a very full after work life and likely does not live in a great market to invest? Who needs the risk for a measly 5% return. I wouldn't buy real estate with only a 5% return - too many risks and surprises!!!
Real Estate takes work, lots of perseverance and the ability to make quick decisions. It is a very tough business to pick up with limited cycles.
I suspect for most baby boomers they would benefit from finding an experienced investor with a documented model, lots of examples of success and a willingness to share.
If you want to talk just let us know.
Good Investing
Comments (4)
Check out this article about baby boomers - https://www.realcrowd.com/blog/2013/03/real-estate-a-powerful-investment-for-every-generation/
Roman Rosario, almost 12 years ago
I'm one of the last of the boomers, and can see the stresses on those ahead and behind be age-wise. REI can be the avenue for almost all age groups.
Jon Klaus, over 13 years ago
In a recent article the WSJ said that 3 out of 5 of the baby boomers don't have enough for retirement. This is really sad, the old adage of "work hard" is not going to help when they can no longer work. I have tons of family members who just "hope" is all works out - they're crazy!! Their strategy for retirement, if they have one at all - save money!! This is another crazy notition especially since the average american only can save $200 a month (on a good month). Another great point you made is about inflation. Most people don't realize how this works and they are poorer because of it. I don't totaly blame then, inflation is one of those trickier things to track since it is not as immediately obvious. I still think the best strategy to fight inflation is fixed interest debt mixed with cash flowing real estate, compared to all other investments, nothing comes close. Congrats on nice ride of the silver train!!
Arthur Garcia, over 13 years ago
Now is the time to buy.
Carlos Flores, over 13 years ago