If you’ve been saving diligently for retirement, recession – or even the specter of one – is likely raise significant concerns. You’re not alone. More than 55% of people said that they were concerned about the impact that a recession would have on their retirement. Starting out your retirement in a recession can have serious long-term impacts on your lifestyle.

For example if you have $1.25 million in retirement savings and investments, and plan to draw out 4 percent per year, you’ll have an annual income of $50,000. In a recession that takes 20% of your savings, you’ll lose $250,000 off the top. If you maintain your annual withdrawal of $50,000, your 25-year cushion will shrink to 20 years. If you want to maintain a 4% annual withdrawal strategy, your annual “salary” will drop from $50,000 to $40,000.

For people who have less in retirement reserves, the impact of a recession can be devastating. Our example just takes into account the cash value of retirement investment. Declines in the value of non-cash assets (like real estate) can have an equally devastating effect on retirement planning.

Declines in the economy do provide some opportunities for investors who are prepared to act. Careful recession investing can put you in a good position, if you can afford to wait for the market to return. If you can’t afford to wait out a recession, what options do you have?

Right now, investors who are prepared to act can take advantage of the opportunity for high returns in Puerto Vallarta real estate. Puerto Vallarta is one of the hottest real estate markets in this hemisphere and has been producing a ten-percent return for the past ten years. A property worth $100,000 in 1998 is now worth $260,000. Even better, property values are expected to double again in the next five years.

Puerto Vallarta real estate is valuable because of its tropical climate, proximity to the Pacific Ocean, and Puerto Vallarta’s high quality of life and low cost of living. Puerto Vallarta offers the exact mix that retirees from all over the world are looking for.

If you’re looking for a solid performer in real estate, consider what the purchase of Puerto Vallarta real estate will do for you, both now and in the near future.

Photo Credit: Ray