Retirement; like your parents, but way cooler
In 1991 Billy and Akaisha Kaderli retired at the age
of 38. Now, into their 4th decade of this
financially independent lifestyle, they invite you
to take advantage of their wisdom and experience.
Strategies to Invest for Retirement
Investing in retirement is very crucial. It saves you from becoming a burden on
your dependents after retiring. While some people depend on social security
benefits in their old age, they aren't guaranteed. Even if you can access these
benefits, personal retirement investment gives you more financial comfort rather
than depending on public policy. Investing for retirement allows you to develop
a portfolio that will offer sufficient retirement income for maintaining
financial stability. This post discusses five strategies to invest for
1. Precious metal IRA
Precious metal IRAs are individual retirement accounts that involve investing in
physical silver or gold bars/ coins. They’re robust
that promote retirement portfolio diversification over traditional assets.
Investing in precious metal IRA minimizes possible investment risk and
volatility and protects your wealth during economic downtimes/ instability. To
invest in a precious metal IRA, you must select a custodian to manage your IRA
and a precious metal company.
The custodian holds your gold or silver in a safe storage facility. After
choosing a custodian and precious metal provider, fund your account and decide
the type of metal to invest in and in what quantities. Consider looking at the
precious metal options offered by
Oxford Gold Group and other reliable providers to find the best metals to
Annuities are a perfect way to ensure guaranteed income promised monthly or
annually in retirement. They’re tax-deferred, meaning you owe nothing to the tax
man until your money is withdrawn, reducing Social Security taxes and leaving
you in charge of when to pay taxes. While there are various annuities, a
deferred annuity is ideal for retirement investing because your funds are
invested until you’re ready to start withdrawing. Unlike an immediate annuity,
where you're paid immediately after making the first investment, a deferred
annuity amasses money.
3. Real estate
Real estate is great for retirement investing. It’s an asset category with high
ROI and usually gives a hedge over inflation. You can invest in real estate for
retirement in the following ways:
* REITs (real estate investment trusts)
REITs are investments in a group of properties/ other real estate assets. They
have a unique tax status that requires payment of
at least 90%
of their income to shareholders as dividends. With real estate investment
trusts, you reap investing benefits without the struggle of purchasing and
managing properties. They're easy to buy and help diversify investment risk by
letting you invest in several properties.
Investing in residential or commercial rental properties guarantees a steady
income flow in retirement. It diversifies your income sources, stabilizing your
financial status. The passive income generated through rentals helps maintain
your lifestyle and covers unexpected expenses.
Bonds are a valuable option to include in your retirement investment portfolio.
Unlike stocks, bonds are more stable. They pay regular interest, generating a
steady and predictable income stream to boost your financial stability during
retirement. Some bonds offer tax-free income, but their yields are lower than
their comparable taxable counterparts. However, the income after tax for
high-tax bracket investors may be higher.
5. Mutual fund retirement accounts
Mutual funds provide several investment options to pick from, depending on your
goals. Investing in these funds every month helps grow your retirement corpus
over time. It also gives you a hedge over inflation.
Planning for retirement keeps you from becoming a burden to others, promotes
independence, and ensures you aren’t solely dependent on Social Security
benefits. Consider applying these strategies to invest for retirement.
About the Authors
Early Lifestyle appeals to a different
kind of person – the person who prizes their
independence, values their time, and who doesn’t
want to mindlessly follow the crowd.
Retire Early Lifestyle Blog
About Billy & Akaisha