How to secure your retirement
Retirement will be here before you know it, whether or not you are ready. Real estate, stocks, and a retirement account, are the list of most stable long term investments, backed by most all strategic planning advisories. Now that you know what to invest in the question remains how and why? These all need time to grow and involve secure and reliable investments to help you to reach your retirement goals.
Real estate has taken its hits in the last few years especially from that all too fresh crash in 2008 from the housing bubble. A fresh wound for many, including myself, yet many have made fortunes on the backs of investment properties, this can be anything from your own home, vacation home, or rental property. However only the last will give you active monthly income, unless you decide to do a reverse mortgage during your golden years, which is a viable and excellent way to finance the golden years as long as there is a good amount of equity built up. Of course you can always rent out that vacation home, bringing in active money and building equity at the same time, allowing you to have a monthly income, this depends much on location, location, location. According to the National Association of Realtors the average home price is 2014 average of $207,000 that 2.6 times in 30 years, a great investment indeed. Yes they dip and spike, but the overall investment curve is up and to the right just as it should be unlike some of the stocks that are around.
Oh that fateful stock market she can bring fortune and ruin to oh so many. How can we stay relatively safe and still have a good return on our investments? The always list topper are the index funds, less known, but faithful. Security lies in the diversification of funds throughout a specifies index such as the S&P 500 which gives a fairly stable 10% annual return spanning all the way back to its inception in 1928, not bad at all! Now for bonds, the average US government bond is about 5–6% annual but the stability is as good as the entity you are investing in, so as the country does better, the bond goes up. They are very stable and pay interest regularly as to give a predictable stream of income and next to cash a US treasury bond is the most liquid investment on the planet and some provide tax-free income. Lastly we have mutual funds, they are a collection of companies put together and marketed by a fund manager; now these are tricky because they are all over, some good some bad, really have to do your due diligence and invest accordingly. There are many others in the market, but these are the most stable. Many will have an account set up by an employer or investment strategist such as a 401K.
The 401K retirement account is the best long term investment because it is entirely focused on retirement. Tax benefits are the big winner for these types of investments. In reality they are simply mutual funds or similar products that have been created to fall into the category allowing the user to pay initial taxes on the money and have the profits free and clear, or defer taxation until the money is withdrawn upon reaching retirement age. There are pitfalls associated with these including penalties and inflated taxes for early withdrawal and having an average rate of return at 4–8% depending on allocation of funds it is less risk, less return.
All of these investment strategies have one thing in common, they take time. You cannot rush them with a minimum 10yr hold is advisable for all of them. Be patient, make regular contributions and the benefits will be there. While you need to watch them, do not fall into emotional trading and sell or buy in a panic. Relax and enjoy the journey you are about to embark on.
So, what if there were a way to eliminate the emotional traps that hit most all traders, a way to see the coming highs and lows? That would be amazing would it not? Well there are, analysts do a very good job of predicting the highs of the upcoming market pricing, however, this is kept to those with very large portfolios, in fact many reports put the number at $10+m accounts. We at VestIn believe there is a better way, and we mean to bring it to you. Within the next few months we will be releasing to the public a way to revolutionize the trading industry, giving power back to the investor with the tools currently only available to the uber rich.