Unlocking Real Estate Opportunities for General Motors Employees: A Guide to Building Wealth in Retirement

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If you are a General Motors employee looking to buy real estate as a part of your retirement planning, then you should know that such an approach has its advantages and disadvantages,' says Michael Corgiat of The Retirement Group, a division of Wealth Enhancement Group.

Brent Wolf from The Retirement Group, a division of Wealth Enhancement Group advises General Motors employees who want to diversify their retirement portfolio with real estate to focus on due diligence and the local market dynamics.

In this article, we will discuss:

• 1. Diverse Retirement Investment Strategies:  We compare the conventional stock market investments with the real estate options for retirees and emphasize the tangible benefits and the stability that comes with real estate.

• 2. Challenges and Benefits of Real Estate Investment for Retirement:  We explore the possible drawbacks, such as problem tenants and repair costs, against the background of healthy rental yields and tax advantages.

• 3. Real Estate Retirement Stories:  Real tales from four people over the age of 65 who have invested heavily in real estate, including their stories, approaches, and results.

• While on Wall Street, many people save for their retirement, some of the General Motors employees may decide to own real estate, which is a more tangible asset, with a better curb appeal. Having kitchens, doors, and walls around their nest egg makes retirees more comfortable. These retirement investors like the property rental income and the tax benefits that come with being a landlord even though many still rely on the stock market to fund their retirement. Some of them also derive joy from the process of property rehabilitation.

The Boston College's Center for Retirement Research, in its analysis of Federal Reserve data, reported that in 2022, 10% of American homes belonged to an individual 65 years of age or older who received rental income, while just 7% of households with an individual under 65 years of age did the same. Managing properties is a job during retirement. Tenants may not pay or may cause damage, units may stay vacant, and repairs may be immediate. In addition, the costs of property ownership such as insurance and property taxes are also rising.

General Motors employees should take these into consideration when investing in real estate. Though there are such problems, there are still many retirees who believe that the advantages are greater than the disadvantages. Due to the years of increasing property values and relatively low mortgage rates, a large number of people are retiring on real estate today.

These four real estate retirees share their experiences, the expenses, the worries, and the pleasures of living off a portfolio of properties.

As many General Motors (GM) employees approach retirement, understanding how to leverage personal assets—such as real estate—alongside company-sponsored retirement benefits is critical. Whether through the GM Hourly-Rate Employees Pension Plan or the GM Salaried Retirement Program, retirees often have the option to elect a lump sum payout or monthly annuity, depending on eligibility and employment classification. Additionally, the GM Savings Plan (401(k)), administered by Fidelity, offers a powerful tool for retirement funding, with GM matching contributions up to a certain percentage.

Health coverage also plays a key role in planning. Eligible union retirees may continue to receive coverage through UAW Retiree Medical Benefits Trust, while salaried non-union retirees have access to GM Retiree Health Reimbursement Arrangements (HRAs) or individual Medicare exchanges. Understanding these options can help GM retirees plan for long-term lifestyle goals, including investing in income-producing properties like those in the examples below.

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Josh Bottfeld: San Diego, California

• Properties: 7

• Mortgage Debt: $1 million

• Annual Spending: $120,000

Josh Bottfeld bought a San Diego studio apartment in 1982 using funds he withdrew from his employer-sponsored retirement account. For GM employees, early withdrawals from their 401(k) savings plan—before age 59½—typically incur a 10% penalty unless certain exceptions apply. Josh sold the studio and reinvested in a San Francisco home, eventually expanding into multiple cities.

Over time, Josh built a diversified portfolio, including 15 properties across Portland, Las Vegas, and San Francisco, leveraging a 1031 exchange to defer capital gains taxes. Similar strategies may be used by GM retirees to optimize real estate income alongside their GM pension or 401(k) distributions. After a brief return to work post-financial crisis, Josh fully retired in 2012. Today, he and his spouse own rentals in San Diego generating $20,000/month in rent, supported by $3,200/month in Social Security and additional returns from private lending.

For GM employees, combining pension annuity or lump-sum payouts with real estate and other income can provide diversification and help address inflationary pressures over time.

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Sarah McLane: Stowe, Vermont & Nantucket, Massachusetts

• Properties: 2

• Mortgage Debt: $0

• Annual Spending: $100,000

Sarah McLane transitioned from Wall Street to real estate, a path many GM retirees consider after decades of employment. When she tapped into her retirement savings in 2007 to renovate an 1813 farmhouse, she did so understanding the tax implications. Similarly, GM employees considering early withdrawals from the GM Savings Plan must weigh taxes and penalties, especially before age 59½.

Her Stowe property is now valued at $3 million. In 2018, she acquired and renovated a Nantucket home to generate $250,000 in seasonal rental income. These cash flows exceed her $100,000 annual spending needs, allowing her to live comfortably year-round between the two locations.

GM retirees interested in property investment should evaluate whether rental income complements their GM pension structure—whether they choose the annuity for consistent payments or a lump sum for reinvestment flexibility.

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Bryan Haltermann: Augusta, Georgia

• Properties: 12

• Mortgage Debt: $2 million

• Annual Spending: $150,000

Though retired, Bryan Haltermann still manages his real estate holdings hands-on, a lifestyle that appeals to many General Motors retirees who wish to remain active. With properties valued far beyond their purchase prices, Bryan enjoys both personal fulfillment and financial stability in retirement.

For GM union and non-union employees alike, understanding the long-term value of investing lump-sum pension payouts or accumulated 401(k) balances in tangible assets like real estate can provide both income and appreciation potential. However, it’s crucial to review your specific plan options. For example, not all union-represented groups at GM are eligible for a lump-sum pension—some may only receive a monthly annuity.

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Final Thoughts for GM Employees and Retirees

Real estate is just one path to retirement income, but combining it with the structured benefits provided by General Motors can be a powerful strategy. Whether you’re a UAW-represented hourly worker eligible for the GM Hourly Pension Plan, or a salaried employee with access to the GM Salaried Retirement Program, it’s important to understand how those benefits integrate with personal investments.

As always, GM retirees are encouraged to review their eligibility, pension options, and healthcare benefits in detail—especially as recent plan updates and buyout offers continue to shape retirement outcomes. With a thoughtful plan, real estate can complement your GM retirement benefits in creating a flexible, fulfilling post-career lifestyle.

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He was well versed in historic properties and was able to restore them with significant tax benefits. He bought out his company partner about 15 years ago. After retirement, he invested the $5 million profit from the sale of ten buildings for about $10 million. An additional $5 million represents the value of his remaining rents, house, and vacation property, along with $2 million in low-rate mortgages. His insurance, taxes, and mortgage are all paid for by rental income.

He and his spouse, Alicia, are primarily spending on travel and are spending $150,000 a year, or $50,000 more than they did before retirement. Italy and Spain have been their recent favorite travel destinations. Due to the rising costs and interest rates, Haltermann has no plan to purchase any other real estate.

David Zach: California, Sierra Madre.

Properties: 4 Mortgage Debt: $850,000 Annual Spending: $66,000 David Zach didn't see the need for any other investments and put all of his retirement money into real estate. He preferred tangible and touchable assets. The majority of his assets are held by Zach, who is 63, and they are mostly centered on three lots in Sierra Madre: his house, a rental property nearby, and an auxiliary dwelling unit (ADU) that is currently being constructed. His current rents yield about $7,000 per month, and once the new ADU is finished, he expects to receive an additional $2,000. He is happy with his real estate investment of homes worth approximately $3.3 million and $850,000 low-rate mortgages.

Working about ten hours a month, he sells shower parts through his business and earns $84,000 a year. He spends about $5,500 a month on food, property taxes, and mortgage payments. He has invested all of his money in housing, and he has learned from the experiences. He lost a property to foreclosure 16 years ago, and he incurred $300,000 in losses.

He has kept a lean real estate portfolio, given that labor shortages and inflation have increased the cost of building an ADU to $100,000. Recently, when construction expense overruns forced him to preserve his older cars instead of ordering a new one. His two adult children will help to finance his retirement and inherit his rental properties. In his words, 'buy the worst property in the nicest neighborhood that you can afford.'

These anecdotes demonstrate that although investing in real estate is a work and risk that can produce a steady stream of income in retirement for General Motors employees. Every investor's journey is unique and reflects that of his or her circumstances and preferences in the path towards retirement financial security and satisfaction. Real estate investments for retirement offer General Motors retirees substantial tax benefits in addition to stable rental income.

The IRS explains that owners of rental properties may be able to lower their overall tax burden by claiming expenses such as property taxes, mortgage interest, depreciation, and repairs on their taxable income (IRS, 2023). This can be particularly helpful for people trying to reduce their tax liabilities and therefore increase their retirement wealth because it can generate a steadier and more reliable source of retirement income.

References:

1. Dalton, Michael J. Retirement Planning and Employee Benefits. 20th ed., Money Education, 2025. UCLA Extension.  www.uclaextension.edu .

2. 'Real Estate Investing for Beginners: 5 Skills of Successful Investors.' Harvard Division of Continuing Education, 2023. professional.dce.harvard.edu.

3. 'Why ASPPA Number So Low and 2012 Budget Number So High?' Center for Retirement Research at Boston College, 2023. crr.bc.edu.

4. 'Retirement Planning Today.' Virginia Commonwealth University, School of Business, 2023. business.vcu.edu.

5. Grainger, Lauren. 'Retirement Planning Today Course Details.' Virginia Commonwealth University, 2023. connect.business.vcu.edu.