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Today’s post comes from S&S reader, Dani. If you’ve just started thinking about retirement, you’re going to want to check out these tips for growing your account.
Seven Ways to Grow Your Retirement Fund
It is never too early to start saving for your retirement.
No matter if you would like to buy a ranch in the American Countryside or if you want to see the world after your full time career has ended, you will need money to afford your retirement lifestyle. Here are 7 ways to grow your retirement savings and live the life of your dreams in your golden years!
Smart Investing
Whether you are interested in building a retirement portfolio that is based on stocks or shares, or you would like to try your hands on day trading, you will find plenty of information on the internet to help you get started in investing.
There is affordable software to help you manage your portfolio, such as CMC Markets offering mobile trading platforms. So you don’t have to sit by the laptop or computer all day, keeping an active eye on how your money is doing.
You might also seek alternative investment methods, such as managed portfolios, property shares, and angel investment.
Pension Plans
It is important that you seek advice from a qualified financial adviser when you are planning your finances after retirement.
While searching the internet for information and finding out as much about the different plans is a good idea, you might not understand all the terms in the documents and the substance of the deal.
It is best to check with an expert before you sign up for a pension plan, and get them to present the historic and predicted performance of the fund, so you can take risks and potential returns into account when choosing your plan.
Some pension plans will allow you to take out annuity especially if you are planning for retirement. This gives you extra security that you have money available should you ever need it in the future. If you ever find yourself needing some extra cash due to losing a job or needing to fund college for children then you can sell annuity payments in full or as a lump sum.
Savings Accounts
To protect your financial future, you will need to do your best to avoid getting into bad debt. This means that you have some backup funds all the time that will help you out when the unexpected happens.
If your car broke down tomorrow, would you need to borrow money to get it fixed or replaced, or would you have savings to reach for and deal with the problem there and then? Create a savings plan and stick to it, so you can enjoy financial freedom and debt-free retirement.
Property Investment
Property is an asset that can give you high returns. You could improve your property to add value or you could buy another one to rent out. There are several options available in real estate.
When planning a buy-to-rent property investment, it is important that you focus on the balance between your costs and the rent you receive. For example, if your mortgage is $550 a month, and you pay insurance and regular maintenance costs of $150 a month, you will want to charge your tenants more than $700 a month to make profits. Invest the money back into your property portfolio or stick it in your pension fund.
Regular Saving
It is important that you make regular contributions towards a retirement saving account. It is not enough to top up the fund once; you want to grow your interest income and future wealth.
Create a budget and find the right amount to put towards your retirement every month. If you do that, you will see the worth of your savings go up year by year, allowing you to plan better things for your retirement.
Reduce Your Regular Expenses
To free up money and contribute towards your retirement account, it is important that you cut back on unnecessary expenses.
Let go of magazine subscriptions that you no longer need and the memberships that you are not using. Visit price comparison sites to get a better deal on your home energy, your insurances, and your other services, such as cell phones, internet, and satellite television. Check the deals on travel insurance and make sure that you are not paying more than you have to.
Add an Income Stream
If you want to save more long term towards your retirement, you will need to increase your income too. If you cannot get a pay rise at your workplace, or secure a better paid position, you might set up your own side hustle or business. From tutoring to dog grooming and becoming a virtual assistant for a few hours a week, you will find opportunities that fit your lifestyle, interest, and needs.
Many people underestimate the importance of saving for retirement. Your state pension or company pension is not likely to cover the things you want to do after you have all that free time. To boost your retirement savings, it is important to think through your options, create a plan, and consult with a financial advisor.
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