Introduction
Retirees work hard for decades to build savings, but traditional accounts don’t keep pace with inflation. Bank accounts average just 0.39% interest, and even high-yield accounts hover near 1.73%. That means your money loses value over time. A money partner strategy for retirees offers a way to protect—and grow—your nest egg with real estate.
What Is a Money Partner Strategy for Retirees?
A money partner strategy allows retirees to put their capital to work without the stress of managing properties. As a money partner, you supply funds while an experienced real estate operator (like Knice Spaces) does the heavy lifting:
- Finding investment properties
- Managing renovations
- Handling tenants
In return, you earn either a fixed interest rate or a share of the profits. This approach blends your financial stability with our real estate expertise, opening access to larger and more profitable deals.
Why Real Estate Is a Strong Fit for Retirement Investing
- Stable appreciation: U.S. home prices have risen an average of 5.5% annually, outpacing bank yields.
- Tangible asset: Real estate is a physical, income-producing asset that tends to be less volatile than stocks or cryptocurrency.
- Tax advantages: Depreciation and 1031 exchanges can reduce or defer taxes on gains.
- Customizable returns: Choose between fixed payments or profit-sharing, depending on your retirement cash flow needs.
This makes real estate a reliable path for passive income for retirees.
How Does Real Estate Compare to Other Options?
- Stocks: Long-term averages hover around 10.39% annually, but short-term swings can wipe out gains.
- Treasury bonds: Ten-year Treasuries yield about 4.40%, steady but modest.
- Cryptocurrency: Bitcoin has averaged 49% annual returns in the past decade, but it’s highly speculative and unsuitable for steady retirement income.
A money partner strategy for retirees strikes a balance between growth and stability—far less volatile than crypto but with higher returns than bonds or savings accounts.
Real-Life Example: Investing with Your IRA
Many retirees don’t realize that self-directed IRAs (SDIRAs) allow you to invest in real estate. This strategy lets you leverage retirement funds without triggering taxes or penalties.
Here’s how it works:
- Open a Self-Directed IRA (SDIRA) through a custodian such as IRA Club.
- Complete a direct rollover or transfer from your current IRA—no taxes withheld.
- Direct the custodian to fund a real estate investment.
By combining your IRA funds with a money partner strategy, you turn idle retirement savings into steady income.
Conclusion & Next Steps
Don’t let inflation erode the value of your savings. A money partner strategy for retirees can help you grow wealth, create reliable income, and enjoy peace of mind in retirement.
At Knice Spaces, we specialize in helping retirees invest safely in real estate. Schedule a free, no-pressure call today to explore whether our money-partner opportunities align with your retirement goals.