Retire Early Lifestyle
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.

5 Strategies to Invest for Retirement

Tyra Johnson

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 retirement.

1.  Precious metal IRA

Precious metal IRAs are individual retirement accounts that involve investing in physical silver or gold bars/ coins. They’re robust financial tools 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 invest in.

2.  Annuities

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 They’re tax-deferred, meaning you owe nothing to the tax man until your money is withdrawn, reducing Social Security taxes and leaving you in charge of when to pay taxes.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.

*  Rentals

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.

4.  Bonds

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.

Endnote

Planning for retirement keeps you from becoming a burden to others, promotes financial independence, and ensures you aren’t solely dependent on Social Security benefits. Consider applying these strategies to invest for retirement.      

Retire 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.

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