Every day, more than 10,000 seniors retire permanently, but are they making the most of their retirement income? Investing your finances with wealth management services well in advance of retirement can help you maintain your lifestyle well into your 80s or 90s. People are living longer these days — the average lifespan is 83 — and seniors are encouraged to contact their local investment advisor when they first consider retiring from their job. Of course, there are a variety of ways to maintain an income after retirement: many seniors tutor children in their local area or turn their hobbies into lucrative online stores. Knowing how much money you will need to retire is the first step to long-term financial growth.
Many people contribute to their 401k accounts for many years, but most people have less than $60,000 in their accounts at the time of retirement. Putting your money into real estate investment trusts could bring a higher return: most REITs offer returns close to 10%, a few percentage points higher than most investment portfolios. Investment firms want seniors to know that their homes are an asset, but more seniors are choosing to sell their homes and relocate to warmer climates than ever before. Some seniors move in with their children or grandchildren, but there are also senior communities that offer independent living options and access to outdoor activities.
Recent surveys show that nearly half of all American workers under 30 have no plans for retirement. Long-term financial growth does depend heavily upon starting to save for retirement in your late 20s or early 30s. If you’re past that point, you may want to take a slightly more assertive investing tack: talk to wealth management firms about your options. Of course, the treasure guarantees that EE bonds — bought at half their face value — will be worth their face value after 20 years. Younger workers may wish to invest in bonds, relying on their value to double after two decades.
Financial growth can also rely heavily on maintaining a thrifty attitude toward everyday life. The more money you can save from each paycheck, the more you will have to invest. There are always reports about people who worked low-paying jobs and who saved their money, only to die as millionaires. How can the average person become a millionaire in their lifetime? There are always opportunities to save money: many online retailers offer the same clothing and shoes as major retail stores do, but at much lower prices. You may be spending thousands in children’s clothing and boots every year: some people look for consignment stores and thrift stores as a way to save money. Buying gently used clothing and appliances can cut your budget in half, experts say. Look for ways to save money on groceries and home purchases.
Another popular method for long-term financial growth is to split homes into two or more apartments. That way, you can live in one apartment and enjoy passive income from tenants. If you’re finding that you need to add some more oomph to your retirement income, look for homes that are in foreclosure. You may be able to get a solid deal on an investment property and, depending upon the rental rates in your area, enjoy $10,000 or more in passive income each year. There are thousands of seniors around the country who are enjoying second careers as landlords, recent studies show.
The most important aspect of retirement should be enjoyment: time to spend with friends and family, and time to pursue hobbies. There are many ways to foster long-term financial growth, and the earlier you can meet with investment firms, the better off your finances should be in the long-term. Start early and keep looking for creative ways to retire comfortably. We have to find ways to finance our retirements and to remain active and socially engaged for as long as possible.