Many Americans are leaving the labor force every year. 45 million of these Americans received their social security funds when they retire. However, some claim that they can’t live on these funds alone.
Being unprepared for retirement is a situation that every American fear. It can certainly be tough to be sixty-years old and not have enough funds to sustain yourself. Relying on your children (if you have any) can hinder their preparations for retirement. This can be detrimental to your family’s growth as it creates an unhealthy cycle of everyone relying on one another. But retirement is inevitable. Everyone has to eventually leave the labor force and live the rest of their lives in peace.
Many Baby Boomers left the labor force last year because of the pandemic. Thankfully, most of them were prepared for reasonably early retirement. In fact, many Americans (71%) are more or less ready for their retirement. This is a good number, but there are still some Americans who aren’t prepared for their eventual retirement. If you are one of these people, you might be thinking right now, what can you do to prepare yourself for retirement? One way you can prepare yourself for retirement is to build a business.
Building a Business
There are more than 30 million small businesses in the US. Having a business is one way you can prepare yourself for retirement. Building a business right now does not mean that you have to quit your job and work in your business right away. You can just put it off until the right time comes. However, by building a business as early as now, you can gain benefits that normal individuals don’t have.
The benefits of having a business include gaining banking privileges that average employees don’t have. One of these banking privileges is business banking. This kind of banking can give you access to business debit cards, commercial deposit accounts, and many more. Additionally, these accounts tend to have higher interest rates. It can even give you access to high-yield saving accounts, which are safe investments to have as you grow older.
Furthermore, the loans you can get are even higher! You gain access to commercial loans and business investments, all of which are inaccessible to people who don’t have a business. However, one of the most incredible things about having a business right now is that you can gain access to employment for yourself once you’ve grown old.
Most companies lay off employees that have grown too old for them. By having your own business, you can be your own boss, and if you’ve been working on your business slowly each year, then all you have to do is manage it. You can even employ your own children to work for you. Having a business is one of the more flexible ways to prepare for retirement.
Investment Opportunities
Aside from having a business, it’s time for you to zone into safe investment opportunities. These are investments you can do without a business. Some of these opportunities you can do right now! It’s all about letting them grow as the years pass by so you can get more funds on top of your social security fund once you retire. Here are some safe investment opportunities that you can start right now.
Index Funds
Index funds are stocks from the stock market but less volatile. They are less volatile because they are a set of stocks coming from many companies. This means that your investments aren’t laid all in one basket. Some example of these index funds includes the Vanguard 500 (VFIAX), Fidelity Sustainability Bond (FNDSX), and the famous Standard & Poor 500 Index Fund. You might have seen some of these index funds on television or the internet. They are quite famous for stockbrokers or anyone who wants to try out investing in the stock market. These funds are slow to grow, but they are reliable. Once you’ve reached retirement, you’re sure to have extra funds from this particular investment.
Gold
Every investor has gold in their list of investments. It is a great asset to have because gold will always be valuable no matter where you go. It is one of the most invested luxuries, and its price is soaring even higher despite the pandemic.
Gold is a luxury that you can store your money in. It isn’t affected by volatile changes in the market. It is available enough for everyone to trade, but it’s limited in supply. It’s the right balance and almost the perfect investment for anyone who wants to retire. Sadly, the entry value for investing in gold is relatively high. However, by investing in gold right now, you can reap the benefits much earlier than others.
These are some ways you can prepare yourself for retirement. Remember that preparing for retirement needs a lifetime of maintenance. So keep investing or working on your business. Slowly but surely, you can accumulate enough funds so that you never have to work ever again once you retire.