Select Mexico Properties

For many seniors who are approaching retirement age, the prospect of leaving work is unappealing. Retiring in a recession means amortizing a major decline on investment values over the remainder of the retiree’s life. It often means reduced benefits, reduced spending and the very real risk of running out of money at a very advanced age. While many senior workers would like to stop working, their economic situation makes that unlikely, impractical or even impossible.

Since the late 1990’s, senior workers have reduced their expectations when it comes to the kind of retirement they will have. The burgeoning cost of health care, rising energy costs, rising prescription drug costs, under-funded or bankrupt pension plans, inflation and the falling dollar have all undermined retirement plans. Seniors no longer hope to retire early. Instead, they hope to continue working until the age of 65 or beyond, in order to make ends meet.

Is early retirement even possible? A comfortable, early retirement is indeed still possible. The success of early retirement planning depends upon the balance of an investor’s portfolio, and the willingness to invest in growth areas. One economist at the University of Michigan says that our economic well-being in retirement is related to growth in the labor market, in part due to the way the Social Security program and private retirement programs are structured. His prediction is that US labor market growth will flatten in the 2010s, making it hard – if not impossible – to achieve the gains in productivity that our retirement structure relies on.

As an early-retirement hopeful, you can still take advantage of growth in the labor market, but you may not be looking at the domestic labor market. Mexico is experiencing an unprecedented growth period in terms of both labor and economic prosperity. Savvy investors understand the importance of investing in growing economies, and are turning to places like Mexico in search of investment returns that outperform other elements of their portfolio.

One of the best ways that individual investors can take advantage of the growth in Mexico’s economy is by purchasing residential property. In some areas of Mexico – including Puerto Vallarta – investors have achieved double-digit gains on property values for the past ten years. These gains are expected to continue as retirees from all over the world emigrate to Mexico to take advantage of the positive economy, low cost of living, and high quality of life here.

If you would like more information on how you can take advantage of the high ROI that Puerto Vallarta property offers, please contact a Select Mexico Properties sales representative today.

Photo Credit: iophoto

These days, most people are concerned about the health of their retirement savings. While early retirement was all the rage in the 1990’s, many older workers are finding that the early retirement route doesn’t add up. When they take a long, hard look at their retirement savings, early retirement doesn’t seem very likely. In fact, 30 percent of people between the ages of 65 and 69 are either still working or still looking for work. Effectively, three in ten people above the age of 65 have determined that they cannot retire.

A recent Kiplinger’s Retirement Report poll indicated that nearly 20 percent of American workers had to tap into their retirement savings before the age of 59 ½. Tapping into your retirement savings virtually guarantees that you won’t have enough for your retirement. In addition, using tax-deferred retirement funds will earn you a 10% penalty on top of the taxes you’ll have to pay on the money.

So how are people funding early retirements these days? Many aren’t, but there are some strategies you can employ to position yourself to take advantage of the opportunity to retire early, if it arises for you.

An investment in Mexico real estate might just push your retirement investments into strong positive territory. In certain markets in Mexico, the property values are hot. Puerto Vallarta happens to be one of those areas. Major Federal government investments are putting Puerto Vallarta into the spotlight again. Known as a perennial vacation favorite, Puerto Vallarta and other Mexican resort towns are the mainstay of Mexico’s current economic plans.

Right now, Mexico’s economy is heavily dependent upon oil. As a major oil producer, Mexico should be (and is) in a good position. Mexican economists realize, however, that it is critical to reform the basis of Mexico’s economy. Just as an investor wants a diversified portfolio, Mexico’s political powers want to see a diversified, strong Mexican economy with input from many sectors. One of the first income producers they want to develop is tourism.

The infrastructure investments are a solid win for Puerto Vallarta property owners. As the city grows and expands, both the demand and the price for real estate increase. In five years, luxury real estate for the individual builder will be difficult – if not impossible – to find. That’s why it’s critical for individuals to act right now. If you’re interested in capturing this growth opportunity, please don’t wait. Contact a Select Mexico Properties sales representative today!

Photo Credit: Sophie

Lately, the baby boomers have gotten a lot of media attention as they approach retirement age. The declining economy and the rising costs of the basics – food, housing, medical care, and energy – are spiraling out of control. Many baby boomers are wondering if their retirement savings will carry them through the rest of their lives.

For Generation X, however, the same concerns are nagging at them. Unlike the baby boomers, however, few Generation Xers are saving for retirement at all. Even those people who are considered financially successful are finding it difficult to save for retirement. After paying for housing, transportation, energy and student loans, many Generation Xers are finding that they have little money to save or invest.

This is unfortunate because this group has the most potential to save and invest, and they also have time on their side. An investment in Puerto Vallarta real estate by a person who is 30 years old could pay handsome dividends over time. With a 30-mortgage on a $500,000 second home and Puerto Vallarta’s appreciation rate, the same property could be worth millions of dollars when that investor is ready to retire.

A smart investor would use the property as an income generator. By renting out the house to tourists and part-time residents, the house could literally generate enough money to pay for itself, even after taking into account the additional taxes and salaries for the home’s caretaking staff.

What better way to fund a retirement than through an investment that not only appreciates in value, but also pays for itself? Saving for retirement doesn’t have to be a struggle. With the right investments made at the right time, even modest retirement savings can provide big returns.

If you are interested in learning more about how a Puerto Vallarta second home can fit into your retirement planning strategies, please contact a Select Mexico Properties sales representative today. The opportunity to purchase land in Puerto Vallarta at its current low rates won’t last long!

Photo Credit: Michelle Spagnol

A study conducted by the Ohio State University shows that workers are disproportionately subjected to age-related job discrimination as they approach 50 years of age and again as they approach 60. The study concluded that the ranks of middle management are filled with workers in this age range who are looked at as being more expensive, especially during lean economic times. Many of these workers are forced into an early retirement or late-life career change.

Additionally, discrimination among workers who are approaching 60 years of age is centered around employer concerns about rising pension and health-care costs for retirees. For employees who lose their jobs while in this age range, finding new employment can be difficult. Job loss or early retirement at this stage can have devastating consequences for workers who may have anticipated a period of stable earnings and the ability to set aside significant savings prior to retirement.

For employees who are looking to stabilize their retirement plans, investment in Puerto Vallarta property may provide excellent returns, as well as low cost of living, high quality of life and even a stable source of non-work income. A luxury second home in Puerto Vallarta could be used to generate income from others who want to lease the property for vacations or as a part-time residence. The income could be used to pay off the property. When the owner is ready to retire, he or she could make the Puerto Vallarta property a permanent residence or sell the property and invest the proceeds for a comfortable retirement elsewhere.

This is an excellent strategy for younger workers who are not in imminent danger of losing their jobs but who may have put off starting a retirement account, or who wish to plan for an early retirement.

In this economy, many workers have delayed retirement or changed their plans regarding early retirement. With the safe investment in a Puerto Vallarta second home, early retirement can once again be something to look forward to! Regardless of your age or your existing retirement savings, please contact a Select Mexico Properties sales representative today to talk about what the construction of a Puerto Vallarta luxury home can do for your investment portfolio.

Photo Credit: The Horton Group

If you always assumed that you would retire to Florida, you might want to rethink that. The outlook for the Sunshine State isn’t as sunny as it once may have been. An investment in Puerto Vallarta luxury homes may be in order instead!

State revenues in Florida are falling, which means pinching pennies hard to get through the current fiscal year and adjusting spending downward for next year. In contrast, the Puerto Vallarta economy is hot with no signs of stopping. Owners of Puerto Vallarta luxury homes have experienced a tripling of property values in the past ten years, and will see those same values double in the next five. Compare that to declining property values in Florida, which are expected to continue for several more years.

Florida is still attractive to the wealthiest of retirees, but the number of retirees who believe they fall into this category is dropping fast. The mushrooming cost of health care in retirement is largely to blame for the decline in retirees’ wealth. On the other hand, investors who live in Puerto Vallarta luxury homes can look forward to affordable health care in a quality environment.

More people retire at age 62 than any other age group. The first of the baby-boomers are now turning 62, and many are rethinking early retirement due to the soft economy in the US. The shrinking job market has put a lot of older workers out of a job, and many cannot find suitable replacement employment. Those who are still working will continue to generate income while they can.

If your plans call for you to work until age 65 or higher, but you lose your job at age 60 and can’t find new work, will you have sufficient funds to cover your retirement? Worse, what happens if a health crisis forces you to retire before your retirement savings are fully realized? Will the savings you have put together be enough to handle the added health care costs? When you invest in a Puerto Vallarta luxury home, many of these questions are answered.

An investment now in Puerto Vallarta luxury homes has some distinct benefits. First, it’s a buyer’s market here. You can have the best properties at prices you’ll never see again in this area. You can build a luxury home, hire staff to help with meals, housekeeping, landscaping and laundry, and live comfortably and within your budget. The quality of life here is high, and you can pass your investment on to your children or sell it for a substantially appreciated value should the need arise.

If you want to worry your way through retirement, or settle for retiring in place and take your chances with the skyrocketing cost of health care, do nothing. If you want to enjoy retirement living in a sunny, warm climate with good health care, a reasonable cost of living and a spectacular return on investment, contact a Select Mexico Properties sales representative today!