Any way you look at it, life is tough; we have to finance our chosen lifestyle and after 45 years of managing to keep your head above water, you are suddenly informed that you can no longer work! Most people don’t start thinking about their retirement until they hit 50 and that is a big mistake – the road to financial security should be mapped out at the onset of your professional life.
Here are a few tips from seasoned investors on how to generate wealth to enjoy a secure retirement.
- Create a financial plan – Think about it like this, a general who wishes to engage the enemy in a far-off land isn’t going to wake up one morning and order everyone to their post, travel hundreds of miles, and then fight a battle. The campaign needs careful planning; the logistics alone are a formidable obstacle, not to mention the ammunition, engineers, cooks and medical personnel. Think of your retirement as a campaign and plan every step, with yearly and 3-yearly goals, which inch you closer to your final goal. You could approach a financial planner and together, create a plan that outlines how you will become financially independent by the time you reach the age of 65.
- Make your savings work – Open one of the bonus savings accounts with a leading Australian bank that offers the best in terms of interest, with other benefits, such as zero accounting fees, interest paid monthly and the ability to set up direct credits.
- Get into real estate – Nothing generates wealth quite like land and property; we assume you bought your first home as soon as you were able; renting is bad business. If you already have a lot of equity in your home, it could make you more money if you liquidated and invested in a rental property, for example, with your tenants paying the home loan! The thing about land is it is a finite commodity and with close to 9 billion people on the planet, demand is always going to rise. A large percentage of millionaires began with real estate, so do consider options like flipping houses (buying rundown properties, renovating and putting them back on the market).
- Check out every investment opportunity – We are all on the lookout for ways to generate wealth and when an opportunity presents itself, you should give it enough attention to determine its validity. If it seems too good to be true, it probably is! Once you start your investment portfolio, diversify your wealth and any commodity you are interested in should be thoroughly researched. Here are a few securities frauds to look out for.
- Connect with an investment broker – Why take chances when you can use the services of a professional investor? Sure, he will take a small slice of the profit he makes, that is a fair exchange if your portfolio is performing well and the best brokers are the ones who outperform the rest!
Making sound investments should see you reach retirement age and be financially comfortable and ready to make the most of the golden years.