Most financial experts agree that retirement planning is something that everyone should be concerned with. This is especially true today, when most people are not likely to remain with the same employer for the majority of their working years. Even for people who are older, there are ways to go about retirement investing that will make the senior years much more comfortable.
The ideal time to start retirement investing is immediately after completing college. At that age, there are a number of investment options that can be used to create the basis for a solid financial cushion. By obtaining whole life insurance early, it is possible to build up a significant equity in the policy, effectively creating a nest egg that can be called upon in later years.
Purchasing property is another means of engaging in retirement investing. Along with the main residence, purchasing a weekend home helps to create assets that are highly likely to appreciate over time. Once the owner reaches retirement age, it is a simple matter to determine which of the residences to sell, and which to use as the primary residence moving forward. The proceeds from the sale can be placed into interest bearing accounts, and used when and as needed.
Looking into pensions and retirement plans offered through an employer is also an important component of any responsible retirement investing. Many employers offer options such as 401(k) investing, employee stock plans, and other means of saving for the later years. In some cases, the employer matches contributions made by the employee, which helps to increase the retirement nest egg significantly over time.
Building a stable investment portfolio is also a good idea. Establish a foundation for the portfolio by purchasing stocks that are steady and highly likely to yield a consistent return over the years. Augment those stocks with bond issues that offer a decent return. With this foundation in place, it is also possible to consider other stocks that are more volatile, and possibly add to the retirement investing process considerably.
Even for people who are not in a position to purchase stocks and do not have access to an employer sponsored retirement plan, there are options. Consider starting with a basic savings account, taking care to place a small amount in the account each pay period. When possible, purchase a certificate of deposit, making sure you allow the CD to roll over when it matures. A personal retirement account, such as the Individual Retirement Account, or IRA, in the United States, or the Individual Savings Account, or ISA, in the United Kingdom, is also an excellent way to engage in basic retirement investing.
The key to any retirement investing activity is to never get discouraged if the amount of the contributions is small. Far too many people delay retirement investing because they think the small amount they can spare every month is of no real consequence. Those small contributions add up over time, and will go a long way toward making those years after retiring much more comfortable.
