There are plenty of things you think about in your 30s. Some of us are raising families, some of us are still wondering whether we even want to have kids. Some are starting their own businesses while others may be thinking about early retirement. No one at this point in life wants to envision themselves as a senior citizen, but it’s a fact of life you should come to terms with. Embracing your age and all the possibilities it brings will give you a head start on when you should start planning the retirement process that ensures your golden years shine as bright as possible. Here are three retirement planning strategies to help you build savings.
Investing in Stocks
Playing the stock market sounds a lot scarier than it is. With the right education and planning, you can make safe investments that slowly accumulate wealth over time. Don’t quit your day job, and don’t try to become a millionaire overnight. Treating the stock market like a casino is bound to run you broke. Instead of these get-rich-quick investments, take it slow, start off small and let your portfolio grow as you age. There are tons of free courses online that can teach you stock market basics and investing for beginners. Take your time studying so you can make the best choices for your life and budget.
Selling Life Insurance
Do you ask yourself how much is my life insurance policy worth? If don’t know the answer, you might be missing out. Life settlements are fantastic retirement planning strategies. You can start in your 30s and accrue a cash value over several decades, then settle and get a lump sum payment in your bank account. While most life settlements require you to be at least 65 years old, there are some companies that allow you to sell sooner if you have a minimum life expectancy of 20 years or at least $100,000 cash value. You can check out a guide to learn more about selling your life insurance through a settlement. Planning now will give you plenty of time to increase your premiums, project your value growth and cash out with the greatest return on investment.
Buying Real Estate
Real estate investment is not all glamorous mansions and multi-million-dollar commercial properties. Anyone with savings can buy homes and either rent them out or flip them. Using real estate for retirement income is a great way to supplement limited savings or inadequate social security benefits. Owning a rental property is a great source of passive income, especially if you buy in an area with a growing value.
You may decide to rent out a small house or family home, but you should consider how long you plan to hold the property before you buy. A good investment in residential real estate should last you at least 10 years. You may also consider opening an REIT, a real estate investment trust. These companies offer the ability to invest in real estate in a variety of property sectors and build a portfolio as you would on the market.