Are Your Retirement Dollars in Real Estate?

Ask any economist and they will tell you almost everything boils down to "Supply and Demand".  Well, if there is one investment that has a limited supply, it is real estate. We can't make any more of it.

Your retirement funds, unless you are quite close to retirement, should be investing for the long term. At least 3-5 years or more. Real estate has always been considered a long term investment and has proven to be a GOOD (if not great) long term investment with rates of return way above average stock and bond yields.

As we are beginning to recover from our current recession, reinvesting some of your retirement assets into real estate makes a lot of sense. The rebound of those funds has a better chance of making up losses incurred over the last 18 months than staying in the traditional stocks and bonds that lost so much ground.

Diversification is still important, so as you look to move funds, don't place all your "eggs in one basket".

Remember...Real Estate makes a great retirement fund investment because:

1. There is only so much of a supply and there will always be a demand
2. Retirement investing is a long term venture and real estate is a long term investment
3. The chances that real estate will appreciate after our down turn are better than stocks
4. Growth in real estate is much more tied to supply and demand and market forces than stocks that can move on bad newspaper articles unrelated to the underlying company's financial condition.

The Flying Crane ... Traditional Chineses 'heavenly swans' (tian-e) or 'blessed cranes' (xian-he) were messengers of wisdom. Legendary Taoist sages were transported between heavenly worlds on the backs of cranes.

Scott Grund is real estate agent in upstate South Carolina, specializing in real estate investment through self directed retirement plans. You can contact Scott at scott@ScottGrund.com

(Please note that I am currently not registered as an investment advisor though I have been in the past. These comments are my opinion and not to be construed as giving individual investment advise.)