Real Investing will be There When Social Security is Gone:- There has always been concern about the financial health of the Social Security system in the United States.  In a recent article by Thomas G. Dolan in Barron's,Real Investing "The Myth of Social Security" it was detailed how shaky the financial foundation is for Social Security and Medicare, the twin retirement programs for Americans.

For those in the United States who are concerned about how to finance their retirement and pay for the higher health costs that come along as one ages, there is real estate investing.  The sooner one starts in real estate investing the better.  No matter the type of real estate bought as an asset, private mortgage notes, turnkey properties, flipping properties, and small apartment buildings, one should never have to worry about "outliving their money" if it is approached as a passive investor with long term view.

History has proved this lesson.

Over the last two centuries, real estate has produced about 90% of the world's millionaires.  During The Great Recession, as stocks and bonds fell in value, rental income in the United States actually rose!.  Traditionally, rental income in the United States increases about 5% on a yearly basis.

Passive investing is the best approach as it allows for gaining from the benefit of more experienced professionals in the real estate industry.  Jerry Cohen, Founder and President of EquityBuild, a real estate investment firm, has participated in more than 2000 transactions since 1984.  Turnkey properties from EquityBuild have been selected to be fixed up, rented out, and then sold while still being managed.  EquityBuild Finance, the funding unit of EquityBuild, can even provide the financing.  For the passive investor, that is truly "one-stop shopping."

Private mortgage notes are also appealing for those who want to benefit from those who are more experienced.  A private mortgage note results when financing is provided for the purchase of a property.  While an individual can finance a single transaction, it is far better to contribute capital to a pool with funds from other investors.  That way there is a far greater diversification in the asset portfolio.

No matter what the type of real estate investing, returns are enhanced by placing the asset in a retirement account, such as an Individual Retirement Account (IRA).  This is very suitable for those concerned about the long term viability of Social Security.  If there is investment received from the property, it is tax free.  That greatly increases the return based on rental income.  If the real estate or private mortgage note is sold, there are no taxes on the capital gains.  Utilizing retirement accounts for flipping properties is especially rewarding due to the large number of transactions that should produce profits.

As with all investing, the sooner one starts in real estate, the better.  

If one small apartment building is bought every year starting at age 25, the real estate investor will own 40 by the time retirement age is reached.  The investment portfolio will be just as robust from assets such as private mortgage notes and turnkey properties, too.  Real estate holdings of this size, no matter the asset, will take care of any concerns resulting from the stability of Social Security and Medicare.  Investing in real estate was profitable long before these government programs, and be long after either perishes, too.