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How To Grow Your Retirement Savings Safely

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Retirement is a time for enjoying life. You can take trips that you always wanted to take or stay home with the kids after school is out. However, this is only possible if you have retirement savings. Many people don’t know exactly how their retirement savings are growing until it’s too late. Don’t wait till it’s too late. Here are safe ways to grow your retirement savings. 

Annuities

Annuities are insurance policies that guarantee a monthly payment for the rest of your life. It is extremely difficult to outlive the money that you get from an annuity, making this a safe way to grow retirement savings. It’s important to do the right research when choosing annuities. Thankfully, it’s not hard to do this with many online resources available; you can click here to get professional advice about things like how you can choose how much risk you’d like to take on when purchasing an annuity. Here are tips for choosing:

Do your homework to make sure the company you choose is reputable. 

Buy a single premium annuity if you want a lump sum payment in one go without having to make monthly payments. 

Buy a variable single premium annuity if you prefer to have regular payments that can vary from month to month.  

Buy a flexible annuity if you prefer to make a one-time payment and still have monthly payments. 

Make sure the monthly payment is guaranteed even when the market takes a dip. 

Choose how many years you’d like to pay for in advance, or choose an immediate payment with reduced benefits. Don’t just focus on the monthly payment because it would be difficult to recover if you run out of money before you have time to enjoy retirement.

Exchange-Traded Funds

While annuities are extremely safe, Exchange Traded Funds are also a great investment opportunity that can prove to be profitable over time even if the market takes a hit. Exchange-Traded Funds are investments that you can buy and sell throughout the day to get returns on your investment. Exchange-Traded Funds are safer for retirement savings because you can withdraw your funds at any time without incurring penalties. This is especially important if you find out that you don’t have enough money to last through your retirement. 

To illustrate how it works, let’s say you invest $100 each month in an Exchange-Traded Fund for a year. At the end of that year, you’ll see that your investment has increased and it will continue to grow as time goes on. What’s more, if at any point during those twelve months you decide that this isn’t working out for you and you want to pull out your investments, you can withdraw them without penalties. Here are tips for investing in Exchange-Traded Funds:

Choose an Exchange-Traded Fund with low fees. 

Choose an Exchange-Traded Fund that is diversified across different assets. This way, if one of the investments fails, you won’t lose all your money. 

Look for Exchange-Traded Funds that are globally diversified to get more opportunities for growth.

Check to see if the company that sells this Exchange-Traded Fund has a good track record of being profitable.

Index Funds

Index Funds are another safe investment opportunity that can help you grow your retirement savings while minimizing risk. Index Funds are great because they offer low fees and you get to choose different assets which have been handpicked by experts in the field who try to get you higher returns without taking on too much risk. 

To illustrate how it works, let’s say you invest in an Index Fund that includes assets like small-cap stocks and treasury bonds and then goes on to perform well (which is likely if you choose a good one). The small-cap stocks will provide more growth but the treasury bonds will help protect your investment from drop-offs. Here are tips for investing in Index Funds:

Choose an Index Fund that is diversified across different assets

Consider the reputation of the company you’d like to invest with before making a decision, make sure they have a good track record of being profitable. 

Choose one that has low fees associated with it.

Try not to invest more than 20% of your overall retirement savings into this type of account, it is only one part of an overall retirement plan.

Tangible Assets

Some people invest in items that they can touch and feel so that they can watch their retirement savings grow. This includes stocks, bonds, CDs, jewelry or even real estate. Investing your money into tangible assets is also a safe way to grow your retirement savings. However, it comes with more risk than other options because you are not guaranteed a return. A tangible investment can be lucrative if done right but it also has its risks. If you are interested in investing this way, make sure that you are only putting up to 10% of your retirement savings into tangible assets. Here are tips for investing in Tangible Assets: 

Prioritize your tangible assets so that you get the highest return on investment.

Be willing to take risks with your investments, but if something doesn’t go according to plan you should be willing and able to lose some money before calling it quits.

Choose items that have a proven track record of increasing in value over time.

Invest In Gold

Gold is a good asset to invest in because it has been proven over the years to hold its value and increase in value when other investments aren’t doing well. While gold does carry some risk, you can help mitigate your investment losses. Gold is an affordable way to diversify your retirement portfolio and it can help to protect you in the event of an economic crisis. Here are tips for investing in Gold:

Use certificates of deposit or money market funds to help balance out your gold investment if you’re worried about taking on too much risk. Make sure these investments are FDIC insured so that your retirement savings will be protected from loss in the event of a bank failure.

Choose gold coins or bars instead of exchanging your money for corporate gold certificates, you get more money this way.

Look into insurance providers to protect your account against theft or loss.

In conclusion choose an option that best suits your needs and don’t be afraid to diversify your investments, as long as you choose a company with a good track record of being profitable. Remember not to put more than 20% of your overall retirement savings into any one investment avenue.

 

6 thoughts on “How To Grow Your Retirement Savings Safely

  1. TOTAL STOCK MARKET INDEX FUND LEAVE IT THERE ADD TO IT

    START IN YOUR EARLY 20,S YOU WILL HAVE LOTS OF $$$$$ FOR YOUR RETIREMENT

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  2. Yep
    Add $ each mth and don’t worry about short term fluctuations. Over 7- 10 yrs, you will avg 9-10% annually

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  3. Stay away from annuities. Gravy train for those who market…huge fees

  4. Put 15% in crypto. Many coins and tokens would fail, but others will replace banking system as we know it.

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  5. buy assets. They are stealing what is left of the value of the dollar. It’s happening right in front of all of us.

  6. This was an informative and comprehensive post, thank you for sharing! I find it especially important to highlight the fact that diversifying one’s retirement portfolio can significantly reduce the risk of losing everything if a single investment avenue takes a hit. I personally have some experience with Index Funds and Exchange-Traded Funds and can attest to their potential for growing one’s retirement savings over time, with minimal risk.

    Your advice on investing in tangible assets and gold is also quite intriguing. I believe these are often overlooked, but they can be a viable way of diversifying and ensuring some level of protection against economic uncertainties.

    I would stress, as you did, that conducting thorough research and perhaps even consulting with a financial advisor before making any investment decisions can make a huge difference. All in all, a great read, and I will certainly be keeping these tips in mind for my own retirement planning!

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