Are you worried about what will happen when you retire? If you have not been saving for retirement, you should be concerned. The official retirement plan may not be enough for you in old age.
After decades of work, everyone deserves at least some years of stress-free fulfilled life. Retirement means different things to different people; to some, it is a long vacation while to others it is a life full of want and dependence. The right time to choose how you will live after you retire is now. If you are not a millionaire (few are anyway), you should have a dependable investment plan to ensure you will live a decent life in this last phase of your life.
There are many investment plans you should consider. Choose well for there will be no time for a second chance. Watch out because there are people out there who can do anything to benefit from your lack of knowledge. The following tips will aid you to choose the best investment for retirement. To spread the risk, you can invest in more than one plan.
Saving as an Investment
Forget the get-rich schemes. Forget winning the lottery. These pseudo-investments are not reliable. The best and time-tested way to secure your retirement is saving. The rules of savings are simple; start early, safe consistently and save with an investment company which is profitable. The first two is self-explanatory. Inflation will continue to rise. Your savings should attract interest which is above the inflation rate; otherwise, the inflation will drain it. An average person retires between the ages of 62 and 67 years. The average lifespan of a Singaporean is 83 years. You need enough money to survive, enjoy and to take care of your health during the retirement period. Saving is not hard if you start early. Do not rely on the Central Provident Fund or the Supplementary Retirement Scheme. These funds will not give you enough money to lead a decent life after retirement.
Invest in Stock
When you buy shares of a firm (also known as stock), it implies that you own a fraction of that company. The growth of this company means your shares are growing, and so is your investment. The best time to invest in a stock is during the Initial Public Offering (IPO) when the company offers its shares to the public for the first time. You can also buy shares at any other time. The beauty of this investment is that you are not expected to do anything; wait for your stocks to grow as the company profitability increases. The secret in this investment is to choose a company which has potential and prospects to be profitable.
Invest in Real Estate
The best way to be assured that your retirement days will be comfortable is to invest in reputable real estate such as Belgravia Green or Riverfront Residences. Although this is a capital intensive investment, its returns are worth it. Because of the capital needed to embark in real estate, it is necessary to start saving early. Channel all your incomes in this investment and before you retire you can own a property in high class places like Treasure at Tampines Condo.
Lastly, another method to prepare for your retirement is to invest in Peer-to-Peer Lending. This is a quick way to get good returns, but if you are not careful, you can lose your investments. Peer-to-Peer involves joining a popular lending club and lending your money to people with a good history of paying on time.
The best investment for retirement will depend on your taste, the amount of money you want to invest and of course your age. When you start early, your monthly payments will be much less than when you start at a later age. The best time to start is now.