Retirement Planning With a Trust Deed Investment

If you are someone who is currently planning your retirement, the thought of placing your money into an investment can be one that’s fraught with trepidation. This can be especially true if you have kept your savings in an account and have been building interest slowly over time. Of course, placing your money in a bank is a good way to significantly lower your risk, but is there another that you can boost your retirement savings?

Not Investing Elsewhere Can Put You at a Disadvantage

The basic equation is this: the less risk you take, the higher the likelihood that you will make less money on your investment. And so avoiding investment opportunities like bonds, trust deeds and stocks can actually mean much money lost. So what holds so many people back when the subject of investing for their retirement comes up?

Mainly, it’s the fear that more money will be lost by investing in the aforementioned vehicles. While higher investment does raise the risk—this is the nature of investments—it’s the investment vehicles that are chosen that will make all the difference in the returns that are received. As well, keeping money in accounts with low returns may seem like a smaller risk, but this can actually result in diminished purchasing power in the future.

Why Real Estate Investing Works For Retirees

The best thing about using trust deeds as an investment vehicle is that there is less risk involved. This type of investment allows for the placing of money into real estate without actually having to manage any property. As well, it doesn’t require any real estate knowledge, nor does it mean significant risk. Trust deed investments exist in several forms.

Types of Real Estate Investments

The REIT, or real estate investment trust, actually sells investment units to its stockholders, or sells bonds that are backed by the property portfolio of the real estate company selling the units. Trust deed investments involve becoming a private mortgage lender who works through a broker. The broker locates safe investment properties for you.

Some may wonder why a broker is needed in the trust deed investment scenario. After all, anyone can learn how to provide mortgage loans themselves. From an investment standpoint, going through a broker can be much more beneficial to the investor, because a broker has already screened those in need of money, something that newcomers to this type of investing may not be able to know due to the simple lack of experience.

As well, the legal process involved with trust deed investing can become overwhelming for those not familiar with the industry. But brokers understand the process intimately, and they can ensure that any money invested in trust deeds not only yields returns, but returns that are received as per what was outlined in the contract. Another benefit of using a broker is that they know how to eliminate the risk of becoming a victim of usury laws, which prevent one individual from charging another too much on their loan.

When investing for retirement, it’s always best to diversify. Having a wide range of investments, coupled with obtaining professional advice, can help you plan for your golden years.

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