In an annual survey of state pension plans, the 2006 Public Study conducted by the National Association of State Retirement Administrators showed that of 126 state-managed pension plans, nearly 87% showed some unfunded pension liability. In other words, the overwhelming majority of state-run retirement plans do not have enough funds to honor their obligations. If this is the condition of state-run pension plans, imagine what unfunded pension liability exist in private plans!
If you have a pension – public or private – and you’re the trusting sort, you probably believe that your pension is in good shape. In reality, it’s probably not. That’s why it’s important to have more than one option for funding your retirement.
Consider adding a solid investment performer to your portfolio. Real estate investments are typically stable, but US real estate has been declining in value for more than a year. High-performance real estate investments can be found, but right now, they’re mostly located outside the country. Finding the right opportunity is key!
A perennial favorite of tourists, Puerto Vallarta is located on Mexico’s Pacific coast and enjoys a Hawaii-like. The cost of living in Puerto Vallarta is very low, and the quality of living is quite high. Puerto Vallarta is a city of 350,000 permanent residents, and is served by most major airlines. With Mexico’s close proximity to the United States, traveling to and from Puerto Vallarta is never a problem.
Building a luxury home in Puerto Vallarta is a great, flexible approach to retirement. With a premium home, you could choose to rent it out to tourists or part-time residents and generate extra income. The rental income from the home would cover the cost of operating the home, providing maintenance, housekeeping and management, and still leave income for you!
Alternately, you could build the house on spec and sell it afterward. Puerto Vallarta is expecting a significant number of new permanent and part-time residents, many of whom are retirees looking for ideal retirement homes. Developers are buying up all available land here to meet the demand for luxury residential and condominium properties. Individual investor should also consider this option.
Finally, you could build your home here and choose to occupy it when you retire. The cost of living in Puerto Vallarta is exceptionally low, yet the city still provides all of the services you’re accustomed to. It’s a great way to make sure that your retirement dollars stretch! Don’t let an unfunded pension liability derail your retirement plans. For more information about building a luxury investment home in Puerto Vallarta, please contact a Select Mexico Properties sales representative today.
Photo Credit: David Playford
Relevant Tags:puerto vallarta retirement, retirement investment, retirement plans, unfunded pension liability
