When we were young, most of us were told that saving plans like 401(k)s, mutual funds, and ETFs were the best way to ensure we’re taken care of in our senior years. After leaving college and finding our first jobs, we would only look to be signed in on some kind of savings plan.

However, what most people don’t understand is that these plans aren’t meant to bring wealth to the beneficiary, instead, they’re designed to benefit the ones running the show. You won’t end up a wealthy person if you stick to conventional savings plans, because they can’t guarantee you enough money to live comfortably in your senior years.

That’s why the best you can do is to take your capital and invest in something that produces income. Real Estate is great to build up savings for your retirement because it allows you to create a passive income for yourself and grow your wealth.

If you want to retire and live comfortable and financially free, follow these tips:

1. Pay Attention To What Rich People Are Doing

Always look towards individuals who have the type of success you want to have. When looking at the wealthy, you might discover that almost everyone with money was or is currently involved in some sort of real estate deal.

If you instead focus on what other middle-class people are doing with their money, chances are that you’ll stay in the middle class

2. Focus Mainly On Passive Income

We’re not suggesting that your job. Instead, take the money you would be putting away for retirement and invest it

Investing in real estate for your senior years can serve as an additional source of passive income, which enjoys certain tax benefits. 

For instance, if you buy a property that generates regular rental income during your senior years (like multifamily properties or assisted living facilities), you can use the revenue instead of withdrawing from your retirement savings, effectively having more money to enjoy when you’re older. 

To give you a better perspective, try to look at income from a rental property the same way you would for dividend income from stock investments or interest income from bonds — you get to sit back and wait for it to come in regularly without too much input on your end.

3. Make Networking A Priority

More specifically, aim to work with people who are a few steps ahead of you, especially if you’re getting into an area where you’re not familiar. Try to find someone who’s been through it at least once and learn from their experiences. 

Make networking a priority and you will not only gain more contacts but also gain more deals. Every opportunity you get to close a deal will have a much greater chance of succeeding. Regardless of where you are in your business, you need to constantly focus on real estate networking.

You can also focus on building a network, community, or social media presence. Put yourself out there as much as you can by creating valuable content, going to meetups and conferences, and building a thought leadership platform.

4. Take What You Know And Go Deeper

Many people will try to diversify and keep moving into new fields, especially when they come across some information claiming that a certain type of investment strategy is the new most efficient strategy available.

Instead, we suggest sticking with what you know. For instance, if you find that owning rental property is making you a steady flow of cash, just keep going with it. Become an expert on the field and keep scaling from there

In the end, you will make more money specializing in a specific area instead of trying a lot of different types of investments.

Final Thoughts On Saving For Retirement

The right way of saving for your retirement implies you’re making the right decision regarding how you save money. These are just 4 of the most important things you should know to get you on track, but also consider other actions you can take, like cutting your spending and being more disciplined with your money.

Conventional savings plans will only get you so far. If you want true financial freedom and independence, investing in income-producing properties is a safe way to ensure you live your senior years just the way you like to.