Select Mexico Properties

According to the Profit Sharing/401(k) Council of America, the number of Americans who have taken loans from their retirement funds has risen to 18 percent, from 11 percent in 2006. As the economic crisis worsens, retirement funds are being looked at as a ready source of cash to cover debts or other needs. Many of these withdrawals are actually loans against the account, which must be repaid with interest to avoid penalties.

The number of Americans who are borrowing from employer-sponsored retirement plans is even higher, at about 25%. Nearly half of all borrowers indicate that their loans or withdrawals will cover non-mortgage consumer debt. For loans from employer-sponsored plans, the borrowed amount plus interest must be repaid within five years or immediately upon severance from the employer. Otherwise, the loan will be treated as a non-qualified distribution, subject to taxes and a distribution penalty.

When it comes to retirement funds, avoiding withdrawals altogether until you’re fully eligible and you need the money is the preferred option. Diversifying your retirement portfolio to include non-cash assets is also a good strategy. You’ll balance your portfolio and you’ll also be less likely to raid non-cash assets in a moment of panic.

Select Mexico Properties is offering premium residential building sites in San Pancho, just north of Puerto Vallarta. Many retirees and those planning to retire comfortably are investing in Mexico real estate as a hedge against losses in the US investment markets. The rate of appreciation on Puerto Vallarta properties has held steady at 10 percent or more per year for the last ten years.

The Select Mexico Properties building sites are extremely special. They’re hillside lots along the Pacific coast. These premium properties are in high demand and won’t be available for long. Right now, they’re priced affordably and will appreciate substantially once luxury homes are constructed on them. This is one of the few opportunities that investors will have to own desirable, affordable Pacific coast real estate in North America.

If you’d like more information about how you can add Puerto Vallarta real estate to your retirement portfolio and increase the long-term value of your retirement funds, please contact a Select Mexico Properties sales representative today.

Photo Credit: Cris DeRaud

Conventional wisdom says that savings and investments made before retirement are critical to a person’s ability to provide for himself after retirement. New research by Russell Investments confirms that for defined contribution plans, but puts a different spin on the importance of return on investment. The research shows that nearly two-thirds of retirement funds accrue once the payout period has begun.

The report shows that 10 cents of each retirement dollar can be attributed to savings and direct contributions to the retirement plan. Thirty cents on each dollar can be attributed to accruals that occur while the beneficiary is still working. The remaining sixty cents of each retirement dollar can be attributed to investment returns and accruals that occur after a beneficiary has begun to collect on his accounts.

If this is accurate, the importance of investment performance cannot be understated because the majority of your retirement funds depend upon it! If you’re looking for excellent return on investment, consider the construction of a luxury home in Puerto Vallarta.

For the past ten years, Puerto Vallarta has seen property appreciation values of at least ten percent per year. Within the next five years, property values are expected to double again as the demand for real estate in Puerto Vallarta grows. You’ll find few opportunities for a return on investment like that!

Select Mexico Properties has a limited number of premium residential building sites in San Pancho, just north of Puerto Vallarta. These sites are highly desirable and are selling quickly. If you want to add a solid performer to your retirement portfolio, in terms of return on investment, you can’t beat Puerto Vallarta real estate. For more information, please contact a Select Mexico Properties sales representative today.

Photo Credit: Thiago Miqueias

A recent poll showed that 20 percent of respondents believed they would fund or partially fund their retirement using home equity. This is an unstable strategy in light of the current conditions in the US real estate market.

First, home equity is unlikely to provide a significant amount of capital for retirement. After leaving the workforce at age 65, the average retired man can expect to live an additional thirteen years. The average retired woman can expect to live an additional 17. In the absence of major health issues, many retirees live twenty or more years after leaving the workforce. The amount of money needed for a comfortable retirement in the United States easily stretches into the hundreds of thousands of dollars, well beyond what home equity offers. In some cases, people who have amassed more than one million dollars are still concerned that they will outlive their retirement savings.

Second, the US real estate market is in a sharp decline. Some areas – primarily those popular with retirees – have dropped 25% or more in the past year alone. Experts warn that the declines will continue, but are optimistic that the market will begin to rebound within a year. In some areas, realtors are currently reporting a 4-5 year supply of homes for sale, based on the average sales volume for the area. Senior workers who plan to sell their homes may have to wait months or years to find a buyer, sell the home for significantly less than its value; or sell it for less than what is owed on the mortgage.

Third, relying on a single investment to fund retirement is dangerous. Real estate is typically a good investment, as long as you’re investing in the right market. Clearly, the US market isn’t presenting the right investment opportunities right now. In fact, many European real estate markets are doing poorly, too. Latin American real estate is a bright spot in the world market right now. Emerging economies in this part of the world make real estate purchases here attractive to investors.

Puerto Vallarta has one of the hottest real estate markets in Mexico right now. Property is appreciating here at a rate of about 10 percent per year. If your real estate holdings aren’t producing this kind of growth, you may want to take real estate billionaire Sam Zell’s advice and look south of the border for real investment values.

Select Mexico Properties is currently offering a limited number of Pacific coast parcels that are suitable for luxury residential development. The cost of land and construction here are comparatively low, and the return will be high. Please take a moment to look through the parcels we’re offering, then contact a Select Mexico Properties sales representative and let us show you how to use real estate investments to your best advantage.

Photo Credit: Billy Alexander