Podcast Extra: Financial Mistake – Failing to Invest in Real Estate

[00:00:00] Speaker A: Take a walk through almost any neighborhood in America. Behind every front door is more than a home. It's an asset, one that for generations has helped families build wealth while keeping up with the rising cost of living. I'm Jim Tarabokia with the retirement radio network powered by Amerilife. Today, as inflation continues to reshape retirement planning, more Americans are beginning to view real estate differently. Not simply as a place to live, but as an important part of a long term financial strategy. Inflation quietly erodes purchasing power every year. Every day, expenses from groceries to healthcare can cost just a little bit more. Which is why many people nearing retirement are asking a critical question. How can my investments continue working even as prices continue climbing? For many investors, the answer includes real estate. Unlike cash sitting in a savings account, investment property is a tangible asset, one that has historically had the potential to appreciate in value while generating rental income. CNBC business News editor Robert Frank says younger generations, millennials, for example, are choosing to gain wealth through real estate over the stock market. [00:01:08] Speaker B: 88% of Gen Z millennial investors plan to increase their allocation to alts in the next few years. Two thirds say traditional stocks and bonds can no longer provide above average returns. [00:01:18] Speaker A: And it's not just younger investors. Many retirees are discovering another powerful advantage the tax benefits. Depreciation allows many real estate investors to deduct a portion of a property's value each year, potentially reducing taxable income even while the property may be appreciating in market value. That's one of the unique characteristics of investment real estate, an asset that may generate income, provide valuable tax incentives, and potentially grow in value over time. Of course, every investment carries risk, and real estate isn't the right solution for everyone. That's why it's important to work with professionals who understand how real estate fits within a comprehensive retirement income strategy. Because retirement isn't simply about saving money. It's about owning assets that can continue to work long after you've stopped working yourself. For the retirement radio network powered by Amerilife, I'm Jim Tarabokia.