Who doesn't want to enjoy a retirement lifestyle that is a reward for a lifetime of hard work?  But a recent article in The Wall Street Journal, "Living Long But Not Prospering," IRA Investingby Gabriella Sterns that featured interviews with Joshua Gotbsaum, Director of Pension Benefit Guaranty Corp, and Dallas Salisbury, President and Chief Executive Officer of the Employee Benefit Research Institute, detailed how many in the United States will fall far short of that financial and lifestyle goal.

 Investing in real estate with the benefits of retirement accounts could do much to make the dream a reality, however.

Retirement accounts, such as an individual retirement account (IRA), offer a number of advantages that make the unique advantages of real estate investing even more compelling for those who do not want to end up, "Living Long But Not Prospering." If the real estate is an income property, there is no tax on the investment income.  From that, the rental income is tax free, adding more to a retirement lifestyle.

If the property that is part of a retirement account, there are no capital gains taxes.  Should it be sold for a profit, there are no taxes on the gains from the transaction.  This can be done time and time again, which makes a retirement account ideal for flipping properties.

No matter which form of real estate investing, a passive approach will maximize the benefits of a retirement account.  Real estate investing is very challenging and highly risky, which is not what is needed in preparing for retirement.  It is best to due all that is possible to ensure that there is plenty of cash available to finance the retirement lifestyle.

Passive investing for the long term provides the risk mitigation that is needed for retirement finances.  Turnkey properties reduce risk even more as this real estate is bought, fixed up and rented out based on the experience of the professionals offering the deal.  That is virtually impossible for an individual to even try to replicate.  It is far wiser to passively invest in real estate to provide for retirement income.

If actually owning real estate is not preferred in retirement, financing private mortgage notes can provide the needed income.  Private mortgages are loans from individuals or groups of investors to those seeking to buy real estate.  There is a strong demand for private mortgage money as traditional lenders such as banks, credit unions, and mortgage brokers cannot meet the demand of the market.  Private mortgage note investing can be very rewarding, too: returns are generally in the double digits.  If the deals are properly vetted, there should be few, if any, defaults.

There are many types of properties that would benefit from being in a retirement account.  Passively investing for the long term makes flipping properties, turnkey real estate, small apartment buildings, private mortgage notes, and other types suitable for providing funds to live in the retirement style desired.