Only 22% of people approaching retirement say they have enough money to leave their job comfortably.
Most people think of retirement as this concept of the future. However, it’s essential to save for retirement as early as possible. This lets your early investments compound over the years, giving you a healthy retirement fund. If you are looking for financial advisors in Melbourne visit Liston Newton Advisory.
If you’re planning for the future, you should keep a few things in mind. These finance tips are the best way to ensure you can retire comfortably.
Do you want to learn more about retirement planning? Here are a few essential finance tips to help you save for retirement.
As mentioned above, starting early is the most important tip that everyone should know about.
Starting early gives your money more time to grow. This is because the compound effect kicks in from day one and helps your investments grow faster as time goes by.
Find out How Much You Need
Financial planning is vital when it comes to retirement. It’s essential to understand precisely what you need to retire comfortably. This way, you will know exactly how much you need to save every month to make that happen.
A ROTH IRA is a retirement account that lets you put money away for retirement. The unique part about a ROTH IRA is that the money you invest has already been taxed. This means your income from the ROTH IRA during retirement is tax-free!
Qualified Longevity Annuity Contract
A Qualified Longevity Annuity is a deferred annuity that provides you with income during retirement. This financial product has a few unique features that make it the best way to receive payment during retirement. If you currently own a business, then consider a business loan or Government contract funding, this will free up your personal capital for retirement.
Ask your financial advisor about a Qualified Longevity Annuity Contract to see if it’s a good fit for you.
Invest in Real Estate
Real estate is one of the best investments you can make for retirement. This is because real estate grows your investment in multiple ways. The property value tends to rise along with inflation, while the rental property still brings in monthly income.
This makes real estate the best way to build passive income for your portfolio during retirement. Even if you don’t want to buy a home outright, consider property companies or REITs. These companies do all the work for you and pay you a dividend.
It’s Never Too Early to Save for Retirement
When it comes to financial planning, saving for retirement is essential. While many people think they can save later, starting early is the best idea. This allows your early investments to compound so that you have a healthy balance by retirement.
There are investment vehicles available specifically for retirement. The most effective is the ROTH IRA and Qualified Longevity Annuity Contracts. Speak to your financial advisor today for more information on what’s best for you.
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