Retirement is a critical point of everyone's career, and oftentimes the most anxiety ridden for most individuals. Although retirement is inevitable, most individuals fail to adequately plan for this crucial junctures of their life. Improper planning adds to the financial stress that individuals face, as they are no longer able to work and most of the retirees rely on pensions, social security, current savings and assets to sustain their standard of living. Most retirees need regular cash flows to manage their day to day expenditure in order to lead a satisfied and comfortable retired life. One of the cheapest and most effective ways of establishing cash flows is to use existing real estate property for that purpose, It may be possible to leverage currently held real estate into current cash flow by renting it out to local businesses or by turning any other real estate holding into rental property. When managed properly, rental property allows for a secure flow of income that gives retirees a certain amount of stability in terms of cash flow. However, there are disadvantages of holding investments in real estate property as, it can have hidden costs such as additional taxes and other fees, which may rise depending upon the property.
Due to the recent financial crisis, real estate and rental properties have been incredibly low, and it is possible to acquire assets that will significantly rise in value in the near to medium term. Careful investment can garner reliable income returns, but the variances within the market and the current state of the economy makes this investment option one for individuals who can afford to have a certain degree of risk within their portfolio.
Another option for retirees is to retire with a significantly lower tax load depending on the source and level of income that they are able to bring in after retirement. There is an option for the retirees to relocate to those states in the U.S. where income is not taxed from certain sources. Reverse Mortgage is another option available for the retirees to access a portion of equity within their homes by exchanging a part of the equity of their homes for a lump sum or a monthly payment. Reverse mortgages serve as revolving credit lines that home owners can access and allows them to use the built up equity within their property without losing property rights and privileges over their homes. This can be advantageous to those retirees with no other sources of income; this method also prevents the sale of property.
Real estate income is a highly viable source of income and brings cash flows to the retirees and it is possible to acquire a significant income stream with careful investment and management of real estate options.
Nearly two thirds of Americans have increased their focus on retirement over the past five years and a recent Merrill Lynch study has found many still lack the confidence to save adequate money for their retirement. According to a report by Bank of America which analyzed on work place benefits, 85 percent of the 1,000 employees surveyed said they are not saving more enough and 78 percent of those interviewed said they would be working into their 60's and 70's. A majority of the employees opined that they needed help for retirement advice or guidance and more than half of them were seeking advice across all aspects of their financial life.

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