You’re young and enjoying life. But what about your life in retirement? Do you have a plan for your future? If the answer is no, it’s not too late to create a plan to ensure that you live life comfortably in your golden years. The good news is that there are many ways to invest in your retirement.
Maintain Your Home
Probably the largest investment in your retirement is your home. However, if you want to get the most money for it, you have to maintain it. Upgrades like energy-efficient appliances and heating and cooling systems are just a few things potential buyers want when they purchase a home. Newer windows improve the energy-efficiency and thus make home heating and cooling costs less. Keeping the structure safe is also essential. Unbelievably, pests can cause extensive damage and often go without notice. Having an annual inspection by professional local exterminators will prevent that from happening.
Retirement Funds
Many companies offer retirement benefits when you start employment as an incentive for taking the job. In most cases, it’s a 401k. A 401k offers several benefits for retirement. First, it’s tax-free while you’re contributing and you only pay taxes on that money when you cash it out. Many companies also provide a match to your contribution, generally up to 3 percent. If you open one in your thirties, you have 30 or more years to build up a sizable fund for your retirement. Additionally, once fully vested, if needed, you can borrow up to a certain amount, and use it to help pay down debt or for a major home repair.
IRA Account
If you don’t have retirement benefits at your current job, you can open your own retirement account, such as an IRA. While there are several different types of IRA accounts, an individual IRA allows you to make contributions on your own that you are able to deduct on your annual tax return and the money you earn is tax-deferred until you close the account when you retire.
Government Issued Treasury Bonds
You won’t get rich on treasury bonds. However, these are low-risk investments that can supplement other retirement funds in place. Generally, the maturity date is 10 years. Once they mature you can purchase new bonds to increase the amounts gradually, to grow your nest egg.
The Stock Market
If you currently have a 401k through your employment, you already have an investment in the stock market. The stock market is a high-risk investment that can either pay huge dividends or wipe you of your savings. However, if you understand how the stock market works or use a reputable firm to invest your money, you stand a better chance of a return in retirement. The best approach is a diverse portfolio that consists of high-risk companies and low-risk companies like utilities.
Tangible Assets
Tangible assets like precious metals, antique jewelry and furniture, and stamps are things that a large population is starting to secure for their retirement. Unlike the stock market, which has many risks associated with it, tangible assets, especially precious metals, often retain their value or go up significantly in price. On the other hand, things like rare coins, stamps, and antiques, are things that achieve their worth through supply and demand. If there is a high demand and a limited supply, the price increases. However, if the reverse happens, your investment won’t provide the financial worth you want.
Investing in your retirement while you’re young is a proactive step that ensures you’ll enjoy much of the same lifestyle you experience now. Thankfully, if you haven’t started yet, there are several different ways to secure the funds you need to retire in style, such as selling your home and a 401k or IRA account combined with tangible assets.