A guest post by Noah Rue
If you’ve been in the business industry most of your life, you might already have a solid 401(k) or retirement fund set up.
Then again, fewer people have that investment than you might think. According to the Census Bureau, only 32% of Americans invest in a 401(k), even though most have access to one.
Whether you’re nearing retirement or it’s still several years down the road, one of your biggest concerns might be remaining financially secure throughout your golden years. No one wants to live through their retirement worrying about every penny.
So, whether you have some money invested in a retirement plan already or not, there are things you can do immediately to make smarter investment choices in your future. Using your business skills can help.
Diversify Your Investments
Developing a sound retirement income portfolio should be your top priority to live comfortably after you stop working. One of the best ways to do that is through investment diversification.
Simply put – don’t put all of your eggs in one basket.
Investing diversification consists of making investments across multiple markets to build up your portfolio for returns over time. This creates more opportunities for success, but it also keeps you safe if one or two of those investments doesn’t do well. Consider some of the following investment types when trying to add diversity to your portfolio:
- Stocks
- Bonds
- Savings accounts
- Mutual funds
- Index funds
- Options
You could also take a more unique approach to investing and look to more “alternative” options.
One industry that has seen a lot of investment growth in recent years is real estate. There are multiple benefits to real estate investing, including tax write-offs and consistent cash flow. It’s one of the best investment choices for long-term financial security if you know what you’re doing. Your business skills will come in handy as a real estate investor, as you’ll likely have an easier time estimating monthly costs, budgeting, and calculating risk factors.
Income diversification should be a combination of what you think will be successful and what you will actually enjoy. Don’t be afraid to get creative and take a few chances on nontraditional investments.
Keep Bringing in an Income
Although the stereotypes of retirement often include things like long days on the golf course or traveling the world, that isn’t the lifestyle everyone wants.
When you’ve been working your whole life, it’s hard to step away and adjust to a completely different lifestyle. So, some retirees choose to work part-time doing something they enjoy. Some of the most viable options include:
- Freelancing
- Tutoring
- Coaching
- Consulting
Continuing to work, even on a part-time basis, can put your existing business skills to use in a more relaxed capacity. Working on your terms will keep you active and focused, and can be beneficial to your physical and mental health.
If you don’t necessarily want to work, but want to get creative about bringing in passive income, consider renting out space in your house or selling unneeded items. Even downsizing your home and selling to make a profit is a great way to get a large lump sum of cash right now that you can use over time.
It’s never too early – or too late – to start planning for your retirement. Being financially secure throughout your retirement years will allow you to enjoy that time and reap the rewards of your hard work and smart financial choices. If you’re business-savvy, you can use those skills to create a more stable future for yourself. So, keep these ideas in mind as you start planning ahead, and you’ll be in much better financial shape by the time you’re ready to quit working.
