My blog focuses on Financial Literacy/Money. Some of the biggest financial decisions any of us will ever make involve retirement. To properly plan for retirement, one has to plan early and wisely. The following contributed post is entitled, The Best High Yield Investments To Save For Retirement.
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How long do you have for retirement? Ideally, you’re reading this post with a good few decades left on the clock. If your retirement date is a year around the corner, I’m afraid you’ve left things a little late! Saving for retirement is something you should do many years in advance of this moment. It gives you plenty of decades to prepare your funds and ensure you have more than enough money to live comfortably without a job.
Unbelievably, most people don’t know how to save for their retirement. You may set a budget and focus on spending less money to have more in your savings, but you need to learn what to do with your finances. Popping your cash in standard savings accounts won’t help – you need high-yield investments with long-term gains that earn lots of money across the years. When the time comes, you can cash in on these investments and generate loads of money to fund your retirement.
What sort of things should you invest in for high-yield gains? Check out two of the best options below:
Real Estate
Real estate investments are always the best for long-term profits. The property market trends upwards, meaning 99% of homes bought today will be worth more in a few decades. It’s a tale as old as time, so getting on the property ladder immediately helps you save for retirement.
Furthermore, you should consider alternative ways of incorporating real estate investments into your life. Aby Galsky – the CEO of a prestigious real estate investment firm – suggests trying private equity real estate funds. He mentions you can invest money into these funds with other investors, and the funds then take this money and invest directly in real estate assets. It’s a particularly smart choice for higher returns if you want to commit capital for long durations – which is precisely the goal of saving for retirement.
So, you have two approaches to real estate: go at it directly and buy properties or invest in real estate investment funds. The latter requires less upfront investment, while the former will generate larger overall returns.
Precious Metals
The next best option is to invest in some precious metals like gold or silver. Historically, these investments are used to hedge against inflation and economic uncertainty. They present steady gains over long periods, marking them as wonderful retirement investments.
Just look at the gold price per ounce over the last 30 years. In 1994, you were getting under $500 per ounce for gold. Fast forward to 2024, and it’s now at just over $2,700 per ounce. That’s a remarkable gain, and evidence suggests it could continue that way in the next 30 years.
So, a 30-year-old saving for retirement could invest in gold now and see it quintuple in value by the time their retirement age comes around. It’s a simple and steady investment with much higher yields than standard savings accounts.
Of course, make sure you take advantage of tax-relief retirement accounts alongside these high-yield investments. You need a 401(k) or a Roth IRA to save more money over the years. The sooner you prepare for retirement, the longer you leave your investments and savings to do the work!
