In an excellent interview recently in The Wall Street Journal, Garbrielel Stern discussed retirement financial issues with Joshua Gotbaum, Director of Pension Benefit Guaranty Corp, and Dallas Salisbury, Private Mortgage NotesPresident and Chief Executive Officer of Employee Benefit Research Institute.  All of the retirement financial needs detailed can be take care of through individuals investing in private mortgage notes.

The Wall Street Journal piece, "Living Long and Not Prospering," addressed the financial hurdles that Americans face in preparing for retirement.  By  far, the great majority of those in the United States are falling short of the funds needed to enjoy a rewarding retirement.  Both of the two retirement experts pointed out how much more is needed to meet retirement expenses, which will surely increase.  A recent interview with Shaun Cohen, President of EquityBuild Finance, provided the answer.

Cohen was the feature guest for a webinar event on utilizing retirement accounts in real estate investing.  EquityBuild Finance, the funding arm of EquityBuild, a real estate investment firm, helps investors prosper through private mortgage notes.  According to Cohen, private mortgage note investing with EquityBuild Finance is yielding 12%.  Making this high yield real estate investing even more attractive is that there have not been any defaults with the private mortgage notes.  The terms are short too, which is also very attractive.  Finding any investment with that high of a reward and that low of a risk is very rare, indeed.

A private mortgage note is when a loan from an investor or a group is made for the purchase of real estate.  The terms are flexible, as the provisions of the loan are set between the two parties to the transaction.  There is a strong demand for private mortgage notes due to the inability of traditional lenders such as banks, credit unions, and mortgage brokers to meet the need of the market.  While an individual can finance a single transaction, it is far wiser to participate in a pool with others, funding a wide range of deals.  From that, protection is provided from the wider range of properties being financed.  Risk management like that is critical for all investments, particularly those being counted on to finance retirement needs.

To provide even more risk mitigation and enhance the returns, private mortgage notes can be part of a retirement account.  When an asset is held in a retirement account, such as an individual retirement account (IRA), the investment income and capital gains are not taxed.  This results in the 12% return from the private mortgage note being tax free.  Should the private mortgage note be sold for a profit, there are no taxes on the gain.

With a 12% return, the funds investing in private mortgage notes will double every six years.  Holding the private mortgage note is a retirement account keeps taxes from reducing the yields.  An investment like that will do much to fund a retirement lifestyle that prevents "living long and not prospering."