There are many options available to help you save for your retirement. Some rely on multiple streams of income other than regular IRAs and 401k plans. The trick is finding the right investment instruments for you. The balance between risk and return is also the tricky part that anyone can learn with the proper education. Here are ideas that can help you prepare for your twilight years:
- Gold IRAs
Investing in precious metals is a way of diversifying assets. But, to purchase them, you have to be willing to keep them in an IRS-approved depository. That’s where gold IRAs come in to act as your vault – only with more benefits.
If you’re wondering if gold is worth investing in, it’s for the long-term! Gold is a known hedge against inflation, and its value moves against the trend. The economy may still be a bit shaky, but the price per ounce has remained steady at USD$1,784.60 – just roughly over USD$1,700 per ounce since June 2020.
Gold IRAs are also self-directed. Depositories like the Oxford Gold Group are where you can buy and store gold. You have the choice to sell them back once the value eventually changes. You can read more Oxford Gold Group reviews for details.
- Immediate Annuities
Another strategy is buying annuities for the income it provides. It’s a form of insurance that gives you a 10-year term and immediately produces income. It can serve as guaranteed income for those who don’t have other income sources. However, be careful of agents who sell annuities that may pay lower revenue because of the increased inflation.
- Keep Social Security Benefits Intact
It makes sense to take out social security benefits when you need to retire for health reasons. But, for those taking the benefits out early, the benefits stand to lose 30%. If you can delay withdrawing the benefits for up to when you’re 70 years old, it may increase by 8%. It’s also why couples should understand claiming strategies so that the surviving spouse can live on other forms of income without taking out the benefit unless he or she needs to do it.
- Extra Source Of Income
You can choose to work part-time or start a small business from your retirement savings to help keep the money flowing. Some invest in rental properties for the passive income they can collect monthly. While you need to pay taxes for these income sources, you should not overspend your money. You can choose to keep a designated account for taxes so that time will come that you can quickly pay them off.
You can also adopt various ways to keep your financial independence active. It’s best to have financial goals and set a budget so that you can have emergency funding. Pay-off remaining debts and ensure that you won’t incur any other loans anymore.
- Profit-Sharing Plans
You can inquire with your employer if an available profit-sharing plan exists for the employees. It comes as a bonus for employees to have the motivation to work hard for the benefits. The employer also will allow you to choose which investments you want to focus on. The downside to this is the accessibility. Only the employer can touch it and decide if the company will contribute annually while keeping in mind that the government mandates it.
There are ways to plan for your retirement and save up more for your security. But, you must have the resolve to do it while you’re young, healthy, and still working. It also takes discipline to set aside an ample amount of savings and to live by simple means. But, if you value your future, it’s worth the sacrifice, especially during these times of uncertainty when even the strongest and most enormous companies are falling. You could make small steps that can make a huge difference during your twilight years.