According to figures from Satista, total retirement savings in the United States amounted to $4 trillion in 2017 despite social security being on unstable grounds. Nonetheless, the average American has taken saving for retirement seriously on account of economic uncertainty and other factors that have a significant impact on financial independence.
Saving for the future is one thing. The real issue is how you are going to use all that cash you stored the moment you retire. Many people start out spending their retirement funds traveling the world and doing whatever they want. But if you’re seeing a better purpose for the savings you have accumulated, then consider these important ideas:
Invest in the stock market
Your retirement money won’t exist for long if the bills keep piling up. You won’t have much left later on if you spend all that money on binge trips and luxuries. In truth, the best thing you can do with your retirement savings is to look for a stable investment vehicle. The stock market is just one of the places where your money can grow. Now that you’re retired, you will want to look for conservative investment options. A safe way to get around the risks of the stock market is to diversify your assets with high-yield bonds and preferred securities as well as immediate and variable annuities. This ensures a steady cash flow regardless of how one asset performs.
Get started on commercial real estate
Acquiring rental properties is also a great way to grow your retirement money and ensure passive income. All you need to do is to look for apartment complexes and other multifamily properties in high-performing states such as Georgia and Florida.
If you were able to access your 401(k), you can use that cash to finance a rental property deal. It might take some time before the income trickles in, but if you consider creating a syndication with colleagues and friends, you can accomplish even more property deals and grow your portfolio.
Increase the value and appeal of your home
Home prices are very likely to rise this year. Homeowners who have saved enough to either downsize or upgrade to larger homes will want to put their properties up for sale—especially if these properties are becoming too expensive to maintain. But prior to selling, homeowners will have to consider making their homes appealing to modern buyers.
A fresh coat of paint is a good start, but you might also want to rehabilitate the roofing through a local contractor, such as Mr. Roof that serves homeowners in Raleigh. Whether the improvements are big or small, updating your home should not only increase its value, but also make it attractive to buyers. That way, you can sell your property faster and finally settle down in a gated community of your choice.
Of course, these are simply suggestions on how you can make the best use of your retirement money. We wish you a very happy retirement!
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