Retirement is the time to start all those jobs you have been putting on the backburner for years. Alternatively, you could take off and spend a few months travelling to new places. Whatever your plan for retirement, one thing is certain: if you don’t spend time building a nest egg, retirement is not going to be much fun.
1. Invest in Property
Property is an excellent pension investment. In most cases, property outperforms traditional savings accounts by a wide margin. However, this does depend on the type of property you buy and where it is located. It also depends on how you buy the property. Paying cash is always preferable, but you could also look at hard money loans Virginia from Washington Capital Partners if you don’t have the cash and you want to make a quick purchase.
2. Retire Later
The later you retire the more money you will accumulate in your pension pot. If you are healthy, this is a sensible plan. An extra year working can make a big difference, especially if you make extra contributions during that time.
3. Start Saving Early
Too many people leave it too late to start saving into a pension. You might have more disposable income in your 40s, but it is much too late to build a decent pension pot. Pensions benefit from accumulated interest, so the sooner you start saving, the more interest you accumulate. Ideally, start saving into a pension when you are in your 20s. So tweak your w4 calculator and start saving some money! Yes, retirement is a long way off, but the years soon pass!
4. Spend Less
If you live the high life, whatever pension income you have will soon dwindle. Instead of spending like tomorrow is never going to come, keep an eye on your bank balance and build some savings for a rainy day.
5. Invest in Stocks and Shares
Investing in the stock market is a risky proposition, but if you have a reasonable amount of disposable income and a good knowledge of the financial markets, you could generate some extra income. However, don’t gamble with what you can’t afford to lose and spread your investments across a wide range of different investments to minimize the possibility of a cataclysmic loss.
6. Invest in Art
Do you have an eye for art? If so, look out for up and coming artists and invest in their work. Work by undiscovered artists is usually inexpensive, but if they hit the big time, it becomes far more valuable. Imagine how rich you would be right now if you had bought one of Damian Hirst’s creations before he became famous.
7. Start a Business
A successful business is an enviable pension plan for its owners. By the time you retire, your business could be worth millions and when you eventually sell up, you get to pocket the proceeds. Isn’t that a nice scenario?
Retirement planning is complex and professional advice should always be sought before decisions are taken. Don’t leave retirement planning until it is too late, or you might not have the income you need.