Do You Own Too Much Real Estate?
Which elevator would you choose if you were riding to the top of the Empire State Building?
One with a single, thin cable? Or one with several strong cables?
Obviously, we all want the safest option.
When it comes to investments though, many families latch their nest egg to a single cable.
It’s called real estate.
Real estate can be a great investment, but I have seen my clients’ retirement savings fail because they put all their eggs in one basket.
I had a recent conversation with one of my clients, who is now widowed. Years ago, she and her husband decided to invest all of their savings into real estate. When the husband passed, my client needed money to live on, but she wasn’t able to maintain a large home of her own in addition to rental properties.
As you can imagine, she lost a lot of money very quickly.
Could this happen to you?
If real estate is your main investment and you want to get back on the right track, these three recommendations can help get you started:
- First, don’t let emotions override logic. People often forget that real estate prices go up and down; the value of your home is changing and you might not even know it. Some homeowners also forget how costly and time-consuming it can be to liquidate their real estate assets.
- Secondly, understand your numbers. In order to make informed decisions, you need to know what your property is actually producing or costing.
- And third, talk to a professional. A real estate agent can help you assess the market, however, a competent financial advisor can help you look at your family’s picture holistically.
I help my clients find multiple ways to nurture their nest egg and plan for their future. If you are overwhelmed with real estate and hold all of your assets in a single investment, I would love to help you.
Come visit our website and schedule a free consultation with me.