It’s never too early, or too late, to start thinking about your retirement goals. No matter if you’re hoping to retire early or work until you can’t any longer, having a plan for how you can retire comfortably is essential.
Get started on these steps right now so you can reach your retirement goals.
1. Have A Professional Review Your Plan
If you’re fortunate enough to have plenty of retirement savings and investments, now is the time to futureproof your funds. But that takes time and skills that most don’t have, so the best option is to turn to a professional financial advisor. The hard part is finding the right one.
WiserAdvisor does all that work for you, matching you to the best financial advisor for your specific situation so you get in an expert in the areas you need.
There’s no cost to you and no obligation to hire the advisor, so there’s not much to lose.
2. Keep An Emergency Fund
Common wisdom suggests you should keep three to six months of expenses in an emergency fund. Once you retire, however, you’ll likely want to bump up that amount. Generally speaking, accidents occur more often as you age, whether through accidental falls, reduction in driving abilities, loss of general dexterity or simply through spending more time at home rather than in an office. The best way to plan for emergency expenses in retirement is to build up your nest egg while you’re working, rather than making it a monthly line item in your budget.
Sign up for a new SoFi Checking and Savings Account today so that you can start stashing cash. You can earn a cash bonus of up to $300 with direct deposit and you can get up to 2.00% APY (Annual Percentage Yield) on all checking and savings balances with no balance cap restrictions*.
Plus, there are overdraft fees, no minimum balance fees and no monthly fees. You can even get paid up to two days early when you set up direct deposit.
3. Diversify To Mitigate Inflation
Many investors look to gold and silver to add stability to their portfolios. Precious metals have often historically performed well during volatile economic times, and their value tends to hold or rise with inflation, making them a popular hedge.
One way to add gold and silver to your retirement mix is by opening a gold IRA. This specialized account allows you to make pre-tax contributions as with a traditional IRA, but it’s designed to hold physical assets such as gold and silver.
There are several reputable gold IRAs out there, and one that regularly receives top marks is Augusta Precious Metals’ Gold IRA. They make it easy to roll over funds from your traditional IRA, Roth IRA, 401(k) or 403(b) accounts into a Gold IRA. You won’t pay any management fees on your account for up to 10 years and your gold and silver will be stored in a fortified depository facility. A minimum deposit of $50,000 is required to open an account.
4. Think Outside Your 401(k)
A 401(k) retirement plan is an excellent way to save for retirement, but it does have limited investment options, so you may also want another account with more investment flexibility.
And no matter what your retirement goals look like, working with companies that understand how to invest will help you.
SoFi’s Active Invest is the hands-on way to put your money to work. They can help you invest by keeping you up-to-date with real-time investing news, curated content, and other relevant data by allowing you to create a personal watchlist and following the stocks that matter most to you.
With a minimum enrollment amount of $10 and commission-free trading, SoFi Invest makes investing accessible to everyone.
5. Generate Passive Income
Passive income plays a key role in many successful retirement strategies. Here’s one that’s about as effortless as it gets. You can rent out all types of extra space around your house – garage, shed, basement, driveway, closet and more – to people who need to store their stuff. And you can make hundreds of dollars a month doing it.
Neighbor is a website that lets you list your extra storage space for rent and connects you with potential renters. It’s free to post a listing, and you won’t need to write up a contract or collect payments – Neighbor handles all that stuff. However, you are in control of where you should be: You review renters’ requests so that you know exactly what they plan to store before you decide whether to approve the deal. Plus, you set the move-in date that’s convenient for you.
You’ll also be protected with up to $1 million in liability insurance, and Neighbor will cover the cost if a renter doesn’t pay.
6. Become A Landlord
Rental real estate is popular as an additional, passive income for the long haul. Unlike investing in stocks, real estate is somewhat shielded from the constant ups and downs of the market and has offered a return of up to 6% over time, which makes it a smart way to diversify your portfolio.
Arrived is your gateway to the world of real estate investing that’s historically required lots of upfront capital. With a minimum investment of just $100, Arrived makes real estate investing truly accessible to everyone.
It’s simple to get started: Create an account, decide how much you want to invest and watch for property appreciation and quarterly rental income payments.
Investing in real estate is a great option for anyone looking to build long-term wealth that can stand up to risk and market volatility.
7. Invest Creatively
A strong way to diversify your investment may surprise you: Art. With a 13.8% return, art handily outperformed the S&P from 1995 to 2021.
Masterworks allows everyday investors to own shares of iconic works of art by the likes of Pablo Picasso, Banksy, Andy Warhol and more.
You can get paid when the painting sells or sell your shares on the secondary market, providing more liquidity than would typically be available when investing in art directly.
8. Plan For Longevity
When the Transamerica Center for Retirement Studies surveyed baby boomers, 21% expected to live between 90 and 99 years and another 10% expected to live to age 100 years old or older. The thought of living so long and potentially outliving your retirement funds can be daunting, especially if your retirement savings have taken a big hit in the stock market lately.
The AgeUp annuity provides a guaranteed lifetime income if you reach your 90s that you can use however you like when you’ll likely need it most. You must be between 50-75 in order to qualify.
Sign up to make sure you plan for a long life
Do you have tips for retirement planning, or were you able to benefit from these services? Email us at Money@GOBankingRates.com and share your story. We may even choose to highlight it in a future article.
Nicole Spector and Greg Garrison contributed to the reporting for this article.