WORKING LONGER MAY BE A GOOD IDEA The ProblemWith Women Retiring Earlier
In 1992, counselor and author John Gray published his widely discussed book “Men Are From Mars, Women Are From Venus.” The relationship book focused on the ways in which men and women communicate differently, offering insight to struggling heterosexual couples. However, in the world of retirement, that same title could apply. Women aren’t approaching retirement like men — and that’s not advantageous. According to studies, women tend to retire earlier than their male counterparts. In particular, white, married women without a higher education degree tend to retire at least 2–3 years earlier than men. In 2018, The New York Times explored this phenomenon and cited a main cause. Women tend to marry men who are older than them, and many couples retire together. Therefore, women are younger than men when they retire.
That same New York Times report found that women live — on average — four years longer than men. In retirement savings-speak, this means women need more retirement income than men. Furthermore, women typically earn less than men, which means their contributions to retirement are often less than men. (In 2021, the Pew Research Center reported women earned 84% of what men made in 2020.) All of this adds up to a major problem: Women are having to rely on that reduced retirement income for a longer period of time. Granted, spouses often share retirement income, which could protect women who choose to retire when their husbands do or earlier than is the norm. However, it may be beneficial for women to work until the same age as their husband’s age of retirement — or longer — to pad their savings. Another New York Times article suggests that working until 70 can provide added income that
savings strategies alone cannot meet. There are many social, cognitive, and emotional benefits to working longer, too. However, retirement is your oyster! Retire when you feel it’s best for you and your retirement savings plan is ready to use. But if this article raises questions, consult with your trusted financial expert.
WOULD YOU GO ALL-IN? This Investment Declined 77%
Imagine you’ve come across an investment that has declined 77% over the last few years. Would you jump on it as an opportunity? Maybe you would. After all, the only direction it can go is up … right?
Now, which community would you buy an apartment complex in?
The answer is pretty obvious, isn’t it?
Wrong. There’s a very old adage in investing: “Buy low, sell high,” but not all investments fit that criterion — and sometimes real estate is one of them.
Stability and growth in the community are key to the success of your apartment investments. Those location factors go beyond all of the spreadsheets, charts, graphs, pro forma statements, and
Bear with me for a second. Yesterday, my wife was on the phone with her mother when the subject of high school graduations came up. It turns out my alma mater in small town Iowa is working hard on its upcoming ceremony. The graduating class this year is a whopping 28 students. When I graduated over 30 years ago my class was 92. That’s a 77% enrollment decline over the last 30-plus years. So, here’s my question to you: Would you invest in this small town? Would you purchase an apartment building in a community with this kind of decline? Hold that thought. The city I live in now is very different. My youngest graduated from high school here a few years ago and had over 600 people in his graduating class. Class sizes are growing year after year and there’s talk of building another high school to meet demand.
management and maintenance personnel details. If you can’t continue to rent your apartment and set them up for cash flow when you’re ready to sell, investing is a monumental waste of time, effort, energy, and of course money! That’s why the very first thing I look at when buying an apartment community for my investors is the RESALE POTENTIAL. Before any other items, THIS is where I spend my time FIRST. If I can check that box, I move on and see if I can turn that opportunity into ownership for myself and my partners. With that in mind, I won’t be investing in my high school town any time soon! –Darin
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