Many articles on this site have focused on how real estate investing can provide for a comfortable retirement lifestyle.  In a piece in The Wall Street Journal by Gabriella Stern, "Living Long But Not Prospering", it was reported that many Americans will not have enough funds to support the retirement they desire.  

Investing in foreclosure properties can provide that financing needed for the desired retirement lifestyle, when done with a passive approach for the long term.

The excellent reporting effort by Stern featured interviews with Joshua Gotbaum, the Director of the Pension Benefit Guaranty Corp, and Dallas Salisbury, President and Chief Executive Officer of Employee Benefit Research Institute.  Each of those experts who focus on retirement financial issues were glum about how poorly prepared many are for life after work. Fewer and fewer companies provide the traditional defined benefit pensions, as before.  Individuals have not been saving enough to make up for the shortfall.

But passive investing in foreclosed properties can produce double digit profits.   That return easily allows for foreclosed properties to provide for all of the financial needs in retirement.  To produce income, foreclosed properties can be fixed up and then rented.  A cash flow property like that will supplement the monthly Social Security check.  Other articles on this site have detailed how shaky many feel the finances are for Social Security.

The foreclosed property could also be sold for a profit.  That could be done with a tenant renting it or remaining vacant.  If the tenant is in it, that makes a foreclosed property much more attractive for those looking to buy an income-producing real estate.  Passive investing in these transactions allows for will profit from the experience of others in buying, selling and renting out foreclosures.

To increase the income for retirement, passive investing in foreclosed properties should be done in a retirement account, such as an individual retirement account (IRA).  That shields it from taxes.  If the foreclosed property is sold for a profit, there are no taxes on the gain.  Should it be rented, the investment income is tax free.  Retirement accounts allow for the rental income and capital gains produced from real estate to be free of taxes, will results in more retirement income.

Due to The Great Recession, there are millions of foreclosed properties that will be hitting the market in the years ahead.  There will be a wide variety in the types of properties available.  Passively investing with experienced professionals is an excellent, proven way to finance retirement with the rental income or the profits from selling foreclosed properties that will soon be for sale.