For many people, saving for retirement is something that needs to be done as early on in life as possible. However, some people simply don’t get around to saving for retirement until they’re in their 40s or 50s. Fortunately, whether a person starts late or early on, there are excellent ways to meet a person’s financial goals for retirement. However, this will mean finding the best retirement investments for each individual, and this is where things get a bit tricky.
Unfortunately, there’s no one-size-fits-all investment for retirement. However, there are a wide variety of different investments a person may want to make. For example, having a diversified investment portfolio is a good place to start. A good mixture of stocks and bonds within a portfolio is a great way to diversify and help a person start growing their money right off the bat. Later on, investments in real estate, currency and precious metals can be added to further diversify the portfolio.
There are also tax shelter investments that a person will want to have, in addition to their investment portfolio. Things like IRAs and mutual funds are excellent ways to get significant amounts of returns, without paying taxes on the money that is earned. While these accounts do have limits in terms of how much can be contributed in a given year, with the right mutual fund or IRA, the dividends can be quite substantial over the long haul.
In addition to all of this, permanent life insurance, most notably overfunded permanent life insurance policies, can allow a person to create a cash surplus that they can withdraw from these accounts during their retirement years, tax-free. While this does take a substantial amount of money contributed to the overfunded life-insurance policy, if tax-free income in a person’s retirement years sounds appealing, it’s likely to be money well spent.
As you can see, there are no shortage of retirement investments a person can make. Some of these investments, how aggressive they are and how much volatility is in the investments will depend on when a person starts to save. For someone starting early on, low risk investments are possible. For somebody starting later, they may have to expose their investments to more volatility in order to get the returns they need to retire comfortably.