5 Strategies When Planning for Retirement
Posted by : Premraj | Posted on : Thursday, January 23, 2020
DELICIOUS
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REDDITIf you’re already struggling to make ends meet, the last thing you want to think about is putting away money for your retirement. That period seems far off, so you don’t have to worry about it now. But hold your horses! Retirement will spring up on you sooner than you think. Every person will get old and this is a topic that you will have to face. The sooner you plan for it, the better you will fare.
Fact is, the longer you delay your retirement planning, the less money you will enjoy when you have retired. And the last thing you want is to have no more money when you’re no longer eligible to hold a job because you’re already old. Consider the following strategies below to help you plan for your retirement:
Save as Much as You can
If you’re set on making a nice little nest egg for yourself when you’re old, then you have to save as much as you can from your current income. If you think that’s impossible, then you have to look at your expenses. Sometimes, you’re spending on things you don’t need.
A designer cup of coffee consumed three times a day will come up to more than a grand in a year. The same goes for your premium HD cable bills, when you’re getting the same service with your Netflix account. Make the tweaks in your budget, so you can save more for your retirement.
Invest in Gold
Some women invest in gold jewelry because the price per gram goes up per year. You can also easily pawn gold in cases of emergency. However, when you’re talking about retirement, the best way to invest in gold or other precious metals is to get an IRA gold plan.
IRA is an acronym for an individual retirement account. You can actually invest in a precious metals IRA also known as a gold IRA. This is like a traditional IRA or 401(k) but you’re holding actual gold bars, bullions, or coins, instead of just paper assets.
To put gold or other precious metals in your IRA gold account, choose a custodian who is an expert in this field. The best part about investing your money in IRA gold is that they protect you against recession. Unlike stocks, which highly depends on the flow of the market, they consider your gold a relatively safe investment.
Choose the IRA Plan that Fits Your Budget and Needs
You all know what Roth and 401(k) plans are all about. These are typically offered when you have a job. These permit you to hold paper assets, allowing to save more money for your retirement. You need to set this up with a financial institution, so you can choose which scheme best fits your lifestyle.
There are seven different IRA plans. Your choice will depend on your income, savings, employment, and other life factors. Let’s take a quick peek at each one below:
— Traditional IRA: The most popular plan known as the 401(k) plan, which you can fund with pretax dollars. Investment earnings are not taxed as long as the money remains in the account. They tax withdrawals in retirement
— Roth IRA: This is a polar opposite funded with after-tax dollars. The best part, withdrawals in retirement are completely tax-free.
— SEP IRA: This stands for Simplified Employee Pension that allows you to grow your income tax free. However, distributions in retirement are all taxed.
— Nondeductible IRA: Contributions are made post-tax and these contributions are not deductible. The principal in retirement is not taxable, but they can tax the growth in earnings.
— Spousal IRA: If one spouse has no work or has low income, couples who file a joint return can avail of this product.
— SIMPLE IRA: The meaning of this is Savings Incentive Match Plan for Employees which is geared for smaller start-ups and self-employed individuals. You can make contributions by deferring your salary.
— Self-directed IRA: As the name implies, you have control over your IRA, which you can use to invest in real assets like real estate, precious metals, and privately held companies. Gold IRA falls into this category.
Find an Extra Gig
On your downtime, you can do extra gigs to make more money. Don’t let go of your day job. But by using your talents such as writing, baking, video editing, sewing, tutoring, etc. you can augment your income. The more you earn, the more money you can save.
Make Various Investments to Grow Your Money
You should follow the advice to never put your eggs in one basket. You should use several means to grow your money. You can put it in a safe investment like a long-term cash deposit with higher interest rates or government treasury bonds. If you’re feeling a little more daring, you can invest in UITFs, mutual funds, and stocks. You can also invest in real estate because they grow in value each year. You can make your money work for you by investing in rental properties.
Conclusion
When you think of your retirement, you’re probably not nervous because it seems ages away. However, plan and set goals while time is on your side. If you start ahead, you can enjoy your retirement because you have savings and investments that you can count. As the popular saying goes, failing to plan is planning to fail.
