The cost of living is rising, and many people find that their pensions and other sources of post-retirement income may not stretch out quite enough to support the living arrangement they had when employed full-time. In fact, this is something that you should start thinking about now – so you can enjoy spending time on that boat you saved up for upon retirement.
The good news is that there are plenty of investments out there, as well as ways to make your money work for you. They all outperform what you’d get from simply putting your money in CDs and depending on the paltry interest rates of most banks.
1. Judicious Stock Market Investments
There was a time when investing in the stock market was a uniquely American dream; and for good reason. The percentage rates it offers you outdo almost every other option; particularly when you make safe, judicious investments in mutual funds and a strong assortment of stable stocks.
You can realize rates of 9% and greater, year-after-year. The key here is to avoid spending the interest, and reinvest it until you retire. Then, it can form a nice nest egg and provide supplementary income to a pension. You can opt for anything from dividend-paying income stocks and blue chip stocks, to value stocks and growth stocks.
2. Start a Small Business
There are few feelings better than working for yourself; more and more people are choosing to do exactly that by starting small businesses. The range of options is illimitable; for example, Joel & Co. Construction was started after the owners saved up enough money and experience by working in the contracting business for decades.
Now, they use that wealth of money to oversee a business that returns more per year than they ever made in their previous jobs. If you worked as a bank teller, for example, upon retiring you can start a monetize blog detailing the ins-and-outs and best practices of the industry.
3. Become a Bail Bondsman
Rather than becoming the bounty hunter, himself, you can use some start-up money to establish an SMB in your town or city. The beauty of running a bail bonds business is that there is always business; people will always need your services.
With the right software and management principles in place, you stand to make as much as $150,000 a year – handily beating out the traditional rate of return of the stock market. It’s all based on location; if you reside in a city with a large population, chances are your income will be considerably higher than a small tow.
4. Apartment Rentals near College Campuses
This can end up being an investment that supports your pre-retirement levels of spending and financial support. College students are always looking for off-campus room and board, because living on-campus is always considerably more expensive than the other options.
As long as you find a development, or take over an apartment complex that isn’t more than a few miles from campus, you should never have to worry about vacancies. Price competitively, and schedule maintenance by outsourcing the work, or having a live-in janitor, and you could see robust returns on your initial investment.
Saving for the future begins with having a vision of what you want financially as your years go by. It starts early; it’s not usually enough to stick to the federally-mandated ways of withholding portion of your check; putting your money to work stands a better chance of reaping rewards.