If you are concerned about having the ability to retire as early as you had previously intended, you’re not alone. Many people planning for retirement have seen their savings shrink during the past decade.
With retirement confidence at an all-time low, according to recent surveys conducted by the Employee Benefit Research Institute, many Americans now plan to work until a much later age. If this option doesn’t appeal to you, take a look at some new retirement investing strategies that can keep you on track for the affluent retirement you deserve. The new investment rules include hard returns and money you can reinvest.
So, how do you get there? Here are some recommended changes:
In order to diversify your investments enough to make a real difference, consider allocating your money on the basis of income streams. Three major investment strategies to look at include stocks that pay strong dividends, rental property and interest earnings.
Stocks that pay high dividends have historically performed well, even during turbulent times. When searching for these stock investment opportunities, look to larger, more experienced companies with zero debt and profitability ratios that are not less than 15 percent return on equity.
In addition, there are many solid ETFs (exchange traded funds), REITs (real estate investment trusts) and mutual funds that can generate income to reinvest. Having a combination of these will further diversify your portfolio and keep you from being top heavy in potentially overvalued stocks. A well-balanced portfolio is your best defense against losses.
Rental property can still be a solid option when investing for retirement. Home prices in some areas appear to have bottomed out, and although monthly rental prices are down as well, you could reap a handsome long-range return on your property investments by wisely seeing these uncertain times as an opportunity for building wealth. Picking up property in major metropolitan markets and college towns is another key to ensure your real-estate investment will pay off.
Negotiating interest on your investments is becoming more common today. The goal is to invest in the highest interest-bearing accounts. The days of blind loyalty to a particular institution are over, and banks are aware of this fact. Today’s savvy investors are asking for more, and many are getting it.
Finally, don’t hurt yourself by flying solo. New and complicated tax rules can continually change your investment opportunities. Avoid costly mistakes by using professionals to help with investments and retirement calculations. Your future success depends on having all the information you can get and using it wisely. By using these retirement investing tools, while aggressively protecting your current wealth, you will be able to live out your retirement years comfortably, just as you originally dreamed.
Tags: diversify, INVESTING, RETIREMENT