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|Subject: Possibly the worst retirement investment||Date: 5/20/2013 1:06 PM|
|Author: Windowseat||Number: 307037 of 309664|
There are times when you really have to wonder if some people truly don't understand what a retirement investment is supposed to be. And this is one of them. We recently had a real estate crash that helped bring down the American economy and didn't do the rest of the world any favors.
So what are some people doing?
Got it in one. Closing (or borrowing against) their 401(k)s and buying investment real estate.
Before anyone starts, yes, there can be times when investing in real estate can be profitable. But it's profitable for people who understand what they're doing, and have sufficient income that they know they can afford the taxes and maintenance on the place.
This isn't flipping. This is buying a house, renting it out, and then selling it when the local market rises.
And it isn't just individuals who are doing this, a lot of banks are doing this. The banks can afford the loss. Most individuals can't.
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