I’m About To Retire: Real Estate Was the Best Investment That Got Me Here
Written by
Heather Taylor
Edited by
Ashley Almario
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
The general recommendation for those about to retire is to have a diversified retirement portfolio. In GOBankingRates’ Retirement at Any Age survey polling 997 Americans, the most common assets in the retirement portfolios for overall respondents were 401(k) and IRA accounts (51%), stocks (39%), real estate (23%) and cryptocurrency and bonds (tying at 20% respectively).
GOBankingRates spoke with two professionals specifically about real estate, and how making savvy investments became the key to their successful retirement. Here are their stories.
‘I surpassed my 401(k) savings by investing in real estate.’
When he was 21 years old, David Vernich started saving all the money he could when he got his first full-time job with benefits. However, after working and saving for 24 years, Vernich realized his 401(k) balance was not growing fast enough to replace his income and maintain his current lifestyle standards once it was time to retire.
Vernich, who works as a commercial loan officer at a bank, said he sought out people who had successfully experienced an early retirement. Most had invested in real estate.
In 2007, Vernich said he made the decision to get a mentor and learn to do what they did. He began investing in single-family rental properties, which enabled him to maintain and replace his full-time W-2 income. In 15 years, Vernich said he was able to accumulate 4.5 times more in real estate equity. This surpassed what he had been able to accumulate for over 39 years in his 401(k).
‘Investing in real estate allowed me to retire at age 30.’
At age 30, Steve Davis, CEO at Total Wealth Academy, was able to retire thanks to investing in real estate. Davis said real estate is the safest and most effective tool for building a second stream of income.
“The key is the monthly cash flow,” said Davis, adding that bills come in monthly, so you need income coming in monthly. “While speculating in stocks, metals or crypto produces appreciation over time, real estate produces appreciation and cash flow.”
While Davis went back to work within six months after retiring, he still advocates investing in real estate and buying income-producing assets for an early retirement.
More From GOBankingRates
