We have all heard it before: real estate is a great wealth building vehicle. Few platforms, if any, offer savvy investors so much upside while simultaneously mitigating risk. And it’s that same potential that has encouraged many investors, not unlike yourself, to look to real estate as a viable retirement vehicle. Why wouldn’t they? Real estate is entirely capable of supplementing some rather comfortable golden years, provided the right steps are taken and the appropriate systems are followed. That said, nothing is more important to investors looking to pad their coffers than a diversified retirement portfolio.
I maintain that the best way to build wealth for retirement is to diversify your retirement portfolio. The proper aggregation of assets can simultaneously increase your bottom line and reduce your risk exposure; two things you must prioritize the closer you get to retirement. Consequently, younger individuals can increase their exposure to riskier investments because they have the time to make up for any setbacks. Those on the verge of retiring, however, aren’t awarded the same luxury. That said, the closer you get to retirement, the less risk you will want to take. That’s why I highly recommend a diversified retirement portfolio.
That’s not to say you shouldn’t strive to find and take advantage of a budding opportunity. It is, in fact, entirely possible for a single investment to result in a very respectable retirement fund. Just ask those who invested in Apple just after the turn of the century. While risky at the time, a mere $100 investment in the innovative tech company back in 2002 would have turned into $5,000 as recently as last year; that’s about fifty times the original investment. Now, consider what your retirement fund might look like if you put in a modest $10,000. You could be looking at upwards of $500,000 without so much as lifting a finger; not a bad if you ask me.
It’s worth noting, however, that investment opportunities like Apple are generally considered the exception, not the rule. So while you can certainly make an argument that it’s possible for one investment opportunity to supplement your golden years, I would advise against it. If for nothing else, saving for retirement has more to do with diversifying your portfolio than putting all of your proverbial eggs in one basket. Remember a diversified retirement portfolio is less susceptible to risk, which is what those looking retirement square in the eyes should prioritize.
