Don’t retire poor and don’t let your clients retire poor.
Bloomberg recently released startling data showing the wealth disparity between retirees who owned their primary residence versus retirees who rented a home.
It showed a huge disparity in wealth with homeowners having a net-worth four times that of renters.
It means that decisions made today, about renting or buying a home, will have a profound effect on the quality of retirement in future decades.
Graphic Courtesy of Keeping Current Matters
When a home buyer buys a home today, you need to let them know that today’s decision is probably going to be the most important financial decision they make about their retirement plan.
That’s because not only will it impact the value of their retirement plan, but additional data show that for around 75% of retirees, their primary residence will be the largest asset they own and will be responsible for a significant portion (73%) of their financial and retirement portfolio.
If they make a mistake today, they run the risk of retiring poor.
You need to advise your clients on buying a home (and not renting), buying the right home that meets their emotional needs, and making sure it is the right home for their financial future.
Your sales pitch to home buyers is that you can not only help them buy a home, but you can add an additional layer of investment expertise focused on buying the right home and optimizing its value, that other agents don’t possess.
You need to help them make the right financial decisions.
You need to be a homeowner wealth advisor.