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Seeking an Investment for Retirement That Works to Mitigate Risk



Planning ahead for retirement? Be wary: the current 10-year Treasury yield is 2.72 percent, which means interest earnings may not provide enough for nest egg withdrawals.

Experts are saying the 80 percent rule (replacing about 80 percent of your pre-retirement paycheck with sources of income like pensions, Social Security, and portfolio withdrawals) may be outdated. But whether you plan to follow that rule or start from a budget, you need a good investment to fund your retirement.

What if there was an asset type that could potentially generate a healthy income? What if this income also provided tax benefits on the income to enhance the net takeaway, while still potentially transcending economic and real estate market cycles? What if the asset had the opportunity to appreciate over time?

Student housing properties may be able to check every box. It’s a potentially suitable investment for retirees.

Potential Income Generation

When it comes to retirement planning, people are looking for an investment that puts their money to work so they can enjoy their current lifestyle without dipping into the principle. Student housing investment can potentially give you a nice nest egg for the future and allows you to leave a legacy for your children.

Tax Benefits and Potential Appreciation

Not only does real estate have the potential to appreciate over time, but it’s also one of the few assets for which you can write off the wear and tear of the building as a loss against your income. In other words, it’s possible that you can have a monthly income on an asset that’s historically not as correlated to the rest of your portfolio and that you don’t have to pay taxes on today. All this, plus it has the potential to continue to grow and appreciate over time.

Potentially Transcend Cycles

College enrollment data show minimal, if any, historical correlation to economic cycles. The inherently limited geography around campuses makes for a relatively scarce supply, but demand is constant. Economics 101 tells us this supply-demand balance is potentially good news for you, the investor. If you have a well-positioned property, we believe you can keep a full year-in, year-out with healthy 6 percent-plus cash flow.

When planning investments, it’s important to link up all the core values that are most important to you. We believe student housing investment has the potential to allow you to enjoy your retirement.

Not an offer to buy, nor a solicitation to sell securities. Private Placements are speculative all investing involves risk of loss of some or all principal invested. Past performance is not indicative of future results. Speak to your finance and/or tax professional prior to investing. Any information provided is for informational purposes only.

Securities Offered By WealthForge Securities LLC. Member FINRA/SIPC.

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