It is never too soon to start planning for your retirement. Investing in a 401K can be done as early as your twenties, and carry through to retirement. The trouble with many of these is the lack of control that you have over it. With retirement funds being lost on the stock market and social security on the brink of extinction, it’s prudent to seek out other options for financial security. With a self-directed IRA real estate investment, you know where your money is and have a much more secure source of funds.
Three things that could be counted on more reliably in the past than today are healthcare, social security and the stock market. In the 90’s, there was a boom in the stock market with internet startups getting people across the nation investing their money. Early 2000’s saw another boom, only to crash even worse. While stocks still pay off for some, they seem even riskier now than ever. Also detrimental to your financial future is an uncertainty with social security and healthcare. Relying on the government for stability in these areas isn’t an option. If there is a social security check in your future it should be considered a secondary source of income.
Setting aside 15% of your pay for savings is recommended in order to comfortably retire in your mid 60’s. The best way to do this is sit down and budget. By starting out with your essentials and reviewing how much money is left over each month, you can figure out which expenses to eliminate. Cutting back on spending, exploring ways to save via coupons and seeking out secondary sources of income are all ways to establish a comfortable retirement cushion.
The other thing you should do is meet with your bank, accountant and human resources coordinator at work to discuss your IRA. By taking a vested interest in your fund you can help your chances of having enough money to enjoy your twilight years. Discuss putting your self-directed IRA in real estate. Rent money, increased property value and gains made on a sale can all go towards your retirement. Unlike several other faltering economic trends, real estate is on the upswing. With the real estate crash that happened just a few years ago, things are starting to look up. Homes are a necessity that can guarantee economic security for your future if you invest properly.
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Jake Alexander is a free lance writer who enjoys writing about financial issues. Follow him @JakeAlexander17.