You have contributed to a 401k for years now, a few dollars each paycheck. Maybe you did or didn’t know where that money was being invested. What you do know now though, you didn’t make as much as you thought you would. You also put a few dollars away in a savings account too, for a “rainy day” back up. However, you have had more ‘rainy days’ than you remember and there isn’t as much in that account either. Not to worry you think, you’ll have Social Security to fallback on, right? Think again – the government released a statement recently that Social Security is in the red.
So whether your retirement is just around the corner or is still a few years away you are now worried what you can do to build up your retirement nest egg. You thought about taking some of the money you do have and invest in stocks. That can be risky though, you may lose everything you have. So what is there left for you to do?
Remember those few acres you bought a few years back? You were planning on building a house there, but the kids and their activities left you no spare time. Moving them away from their schools and friends wasn’t acceptable either. Now that you and the spouse are empty nesters, you could build and move there now. Then you would be away from your grandkids, friends and not to mention your doctors.
So why not sell that raw land? Do you want to pay taxes on it for years to come? Not to mention the upkeep! How long has it been since you even drove out there to look at it? You probably forget you have it till the tax statement comes. Sell that property for cash and use those monies for investing in stocks! It will be money you don’t have anyway, so you won’t be missing anything from your monthly income.
Raw land is a commodity and provides asset security. That means it can be turned into cash at any time to meet other financial needs. Your financial needs right now are getting better set for retirement, right? The raw land you own probably has gone up and down in value over the years, but it always has had some value. It is worth more to you right now in the form of cash than just sitting there.