How do you go about strategizing for your retirement investment?
For you who aren't yet due for retirement but want to start early (Hey! You're the rare jewels out there!)
Of course you would want to accumulate the highest possible value from investments and savings, by the time you retire.
I recommend the followings:
- Start to save and invest as early as possible. The difference in the amount of savings and investment if you start at 35 versus when you start at 45 is.....what can I say, tremendous....This is due to the powerful compounding effects on returns over time
- Use a sound strategy to achieve substantial retirement savings. This involves taking some calculated risks in order to augment the average annual return over time. The net tidy sum could mean a lot to you when you retire, supporting you with a comfortable and enjoyable lifestyle - No down size of anything whatsoever!
- Invest in government treasury bills (TBs) and short-term government bonds (GBs) as both yields almost concrete return on your money invested, with interests. However, historically (over a period of a few decades) if compared with investments in stock market, on average, TBS and GBS yield lower returns. But this is compensated for by the almost certain returns and low risks and low volatility of returns associated with them. So, you can sleep tight at night without worrying your money!
- If you've 5 - 10 years before you retire, you could think about investing in the stock market. Not all your money though, perhaps half in stocks and half in bonds, to give you a bigger nest egg, due to the higher returns from stocks
- You could delve into growing a diversified portfolio that consists of TBS & GBS and local & foreign stocks. This mix could provide you with higher/better returns and lower risks over time
For you who're already retired and want to grow a retirement investment to support your retirement If you're now utilizing your savings to fund your retirement, I would say you should take the safest route investing in TBS and GBS which relatively won't diminish in value.
However, you would have to deal with the following disadvantages:
- Interests from bonds are fully taxed as income
- The interests from bonds may be enough for your current expenses but they might not be, 10, 15 years down the road, due to inflation.
OK, besides investing in TBS, GBS and stocks, what other alternatives you've to create retirement investment that can give you lasting retirement wealth?
Well, starting an online/offline business selling information product is one good way to secure lasting income that's quite immuned to the economy's ups and downs plus you've full control of the business.
I think the logical way to go about this is to sell information you're knowledgeable and passionate about because it's a lot easier to do with something you love and already know - you gonna enjoy and have plenty of fun doing it. And the rate of success is higher.
However, you might have reservations about starting a business, online or offline.
I want to encourage you:
- Don't let fear of failure paralyze you to take the right action
- Don't believe you don't have the money to start a business
- Don't let your "set" ways stop you from making changes - the changes, no matter how small they're, will accumulate to big changes and give you a different outcome. You'd be surprised how easy you can make changes then
- To have clear vision where you want to be when you retire
- To have tremendous focus and concentration on what you're planning to do - investment, business....
So, start your retirement investment wheel rolling......
