Considering Real Estate as a Retirement Strategy?

President Trump signed an executive order that could open the door for 401(k) holders to invest in real estate and other alternative assets. These new guidelines could be a game-changer for those saving for retirement. Investing in real estate with a 401(k) is a smart way to diversify your retirement and reduce the risk associated with investing solely in the stock market.

Many Americans are behind on their retirement savings, such high-growth options could help close the gap. However, alternative assets come with steep trade-offs—illiquidity, higher fees, and unpredictable swings that could derail retirement plans. Unlike publicly traded stocks, private real estate investments aren’t priced daily. You might not know the actual value of your holdings until they’re sold, making it harder to plan around a specific goal. Younger savers with decades before retirement are best positioned to benefit.

So, is real estate a good investment at this stage in your life?

Here are eight ways to invest in real estate for retirement:
1. Own Your Own Home
2. Real Estate Investment Trusts(REIT) – an investment in a collection of properties or other real estate assets. They are similar to a mutual fund, but instead of a collection of company stocks, they hold a portfolio of properties.
3. Buy, Improve, and Flip
4. Purchase Residential Property and Rent it Out to Long-Term Renters
5. Purchase Commercial Property and Rent it Out
6. Purchase Commercial Property and Run Your Own Business
7. Buy a Vacation Home and Rent it Out Part-Time
8. Crowdfunding – The idea is that many people invest a small amount into a particular project.

Investing of any kind is complicated at any point in your life. And it is not something you can afford to get wrong. Most of us need the money we have accumulated over our lifetimes to fund our golden years.