People have all kinds of retirement strategies, but which ones work? It’s difficult to say which approach is best when there are so many of them. Understanding and investigating different retirement strategies makes it difficult to find and settle on the best plan for your needs.
If you aren’t retiring for some time, you can pursue one of the most reliable retirement-saving strategies of all. For those of you with time on your side, saving 15% of your income every year can be a great way to save enough money to retire comfortably.
For example, if you make $50,000 a year and save 15% of your income each year, that equals $7,500 per year. If you can save this amount once a year for 35 years and earn a 7% investment return, you would have $1,042,015 by the time you retire. If you take $625 every month ($7,500 per year total) and earn a 7% return, you would have $1,125,700 when you retire. Saving and investing regularly is the best way to prepare for retirement.
The only problem with this retirement strategy is that life happens, and life can be expensive. Committing to saving 15% of your income every year is easier said than done.
For example, you save $7,500 one year, but you have a medical emergency the following year. That medical emergency prevents you from saving your 15% or losing your job the year after that. Now you’re missing two years of savings. After you find another job, things are going pretty well, and you manage to save another $7,500. By next year you’re married and saving up for a house instead of for retirement.
Then a baby comes into the picture, and you may find it even more difficult to save that 15% every year until you find yourself with a mere $65,000 in savings, which, of course, is not enough to retire on. The point is, saving 15% of your income is an effective retirement strategy if you have time and can commit to it.
Invest in the Stock Market
Investing in equities is perhaps one of the most powerful retirement strategies of all. We’ve all heard stories about our friends who made enough money in the stock market to retire in comfort, while others lost much of their savings.
It is essential to seek the advice of a financial planner or advisor. Often, people invest in the stock of companies they work for or that their friends recommended. The truth is, if you don’t have enough time and don’t invest in a diversified portfolio, you could end up investing thousands of dollars over your entire career and lose it all. Imagine how devastated your grandchildren will be when they hear you won’t be able to help them pay for college because you bet your retirement money on a speculative mining company.
Even worse, think of the look on your partner’s face when you tell them that you have to sell the house and downsize into an apartment. No one wants to spend their senior years struggling financially to make ends meet.
Online investment platforms are making it easier to invest in the stock market and without proper advice from a qualified advisor you can put your finances at risk.
Choose a Tax-Friendly State to Retire in
One of the most critical factors affecting how far you can stretch your retirement savings is the state where you live. With so many different tax environments, a retiree living in the State of New Jersey could find themselves running out of money within several years, while a retiree living in Georgia will be able to live comfortably.
With low property and sales taxes, Wyoming is one of the best states to retire in. The State of Wyoming will not tax your retirement income which means your money will last longer.
The key is to find a state with excellent medical facilities and low taxes. Ideally, you should choose a state with pleasant scenery and plenty of activities. Georgia, Florida, Mississippi, Nevada, Wyoming, and Tennessee all have these. Here are the top 25 cities in the US to retire in.
Sell Your Life Insurance Policy and Supplement Your Retirement
If you’re looking for a way to supplement your retirement, you’ll want to learn about life settlements. A life settlement is a transaction where you sell your policy to a licensed buyer known as a provider for a lump sum. The payout from a life settlement is always higher than the cash value in your policy. Once you sell your policy, you will no longer be responsible for premiums on the policy, and you can spend the money any way you want. Seniors are selling their policies to reduce their expenses and bolster their retirement savings without sacrificing significant assets such as their homes.
Supplement Your Retirement Savings with MRE Finance
If selling your life insurance policy sounds interesting so you can supplement your retirement, you’ll want to contact MRE Finance. We help seniors sell their life insurance policies and unlock the doors to financial freedom. Our free life settlement calculator can provide you with an estimated value of your life insurance policy within minutes. Click https://mrefinance.com/free-life-settlement-calculator/ or pick up the phone right now and call the team at MRE Finance today! 1-800-521-0770. We’ll answer all your questions as we walk you through the life settlement process with ease!