Investments to Make Now to Make the Most of Your Retirement Later

In 2020, 62% of Americans said they were worried about how they would make it during their retirement. That number is up from 56% in 2019. An increase in worry could be attributed to several things, the pandemic, an unstable economy, or the fact that 63% of people live paycheck to paycheck are just the tip of the iceberg.

We can’t make any of these worries go away completely, but some steps can be taken to prepare for retirement. Making wise financial investments is one of them.

So how do you get started, and what investments should you be making now to make the most of your retirement later? Here are a few suggestions that can help you begin making a plan.

Buy And Sell Real Estate

Buying and selling real estate is one of the best forms of investing because you can build equity for the future, get protection against inflation, create regular income and cash flow, and it qualifies you for valuable tax advantages.

If that’s not enough, it’s also easy to get involved with thanks to the ease with which most people can acquire a loan to purchase a property. If you’re in the market to buy an investment property you can take advantage of a dramatically simplified application process to get the funds you need.

Once you buy a property, you can hold on to it until the right time, or do the work that’s required to sell it immediately. Either way, you stand to get a good payout to put towards your retirement.

Buy A Savings Bond

A savings bond is a loan to the U.S. government that’s issued by the U.S. Treasury. When you buy one, you’re lending money to the government to help them meet their funding needs.

The current interest rates for these savings bonds are between 0.10% and 1.68%. Interest is credited monthly and compounded twice a year. They’re one of the safest forms of investments available because they’re backed by the government.

You need to have the bond for at least five years before you can withdraw money without receiving a penalty, but you can keep it for up to thirty years if you choose to. You’ll get the best payoff if you keep it long-term, so this type of investment is best for those who won’t need to redeem it shortly.

Open A 401k Plan

A 401k plan is a work-sponsored retirement account that employees can contribute to. Employers sometimes also make matching contributions.

There are two basic types of 401ks, traditional and Roth, which are mainly different in how they’re taxed.

In a traditional 401k, an employee’s contributions reduce their income taxes for the year, but any withdrawals they make are taxed. With a Roth, employees make contributions with after-tax income but can make withdrawals without being taxed.

Both types are best for long-term investing, but which one is right for you will depend on your unique situation. Check into the plans available through your work and meet with a financial expert before making your decision.

Create A High-Yield Savings Account

A high-yield savings account is a type of account that typically pays 20 to 25 times the average of a standard savings account. You may be able to open a high-yield savings account where you already bank but the highest rates are often available from online banks.

As you consider different high-yield savings account options, weigh factors such as initial deposit requirements, interest rates, minimum balance requirements, and any possible account fees.

A high-yield savings account can be a useful option for money that you have sitting in a traditional savings account. It offers the safety of federal insurance and a yield that’s higher than a regular savings account and less than you could potentially earn from riskier investments.

If you want to make the best of your retirement later, you need to start making good investments now. The sooner you begin, the more money you’ll have in your account when it’s time to leave the workforce.

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