7 Ways You Can Invest For Your Retirement (Opinion)

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There are a few guarantees in life that apply to everyone.

You’ll get older, you die, and you need money for retirement.

The last one is important since you can affect this. However, only 46%of people have money saved for retirement according to USA Facts.

That is a scary number. That means only one out of every two people have invested for their retirement.

I know money can be tight, and we live in a must-have now society, but you need to prepare for your future. You will get older, that is a guarantee.

And one day, you will retire.

“The average retirement age in the United States is 61, according to a 2022 Gallup survey.”

~ Nerd Wallet

If you’re unsure how much you need to save, NerdWallet provides an answer on how much money you need.

“The one used most often is the 80% rule, which says you should aim to replace 80% of your preretirement income. This is a loose rule: Some people suggest skewing toward 70%; some think it’s better to aim for a more conservative 90%.”

You don’t need to have this number exactly, but be very close. You can get a loan today for many things, education, a car, or a house, but you can’t get a loan for retirement. Emphasizing saving for your retirement is very important.

Other sites show different figures so do your research and read what others have stated. Then you need to make your best guess since you know your spending habits best.

The lottery is no sure thing

In life, you want to reach your goal, but saving for your retirement is not a fast process. It takes time, many years in most cases.

If you are playing the lottery hoping that will be your retirement, you shouldn’t plan for that. The odds of winning the lottery are less than your odds of saving for retirement.

The percentage of people who win the lottery is very small.

“You have a 1 in 292.2 million chance of winning the lottery in the United States.”

Search logistics

So when you invest, you have a much greater chance of having money available when you retire.

The $10 or $20 you put in the lottery every week could go into your retirement fund.

It is best to invest consistently whether that is weekly or monthly. The compound effect of the money you invest will grow over time.

When you start investing and it starts at $100 grows to $1,000, and then to $10,000. And it keeps going from there.

Of course, you can’t control the market and there will be times when your investment goes down. Disregard this since you are investing for your future.

Continue to invest despite the bad news or turmoil in the market.

Seven ways to invest

There isn’t one way you can save, so I’ll point out seven different ways in no particular order. These are the more common ways you’ll see today.

1. Stocks

2. Mutual Funds or Exchange Traded Fund

3. Real Estate

4. Cryptocurrencies

5. Bonds

6. 401K

7. Individual Retirement Account

Each one is different. I won’t go in-depth here covering each.

I went to college and knew nothing about investing. Before the internet took off, I spent time reading.

Today, you can read investment magazines such as Kiplingers or Barrons. I first started reading Money Magazine, but that is only available online now.

If reading isn’t your thing, then check out financial sites on YouTube or podcasts.

Learn as much as you can and don’t be afraid to make a mistake. If you make a mistake, learn from it and try not to do it again.

Your investment strategy

It is best to figure out your timeline for investing to your ideal retirement age. Invest as much as you can because you never know if you may decide to retire earlier than expected. Sometimes you may have to retire earlier due to health reasons.

If you invest in a retirement fund, such as a 401K or, an IRA, try to invest the maximum amount you can each year.

I always encourage people to pay themselves first. This means as soon as you get paid, invest in yourself. Today it is easy to do that as you can have companies take the money from your account and invest it directly into your investment.

If you are saving for real estate, then pull money out of your paycheck and set it aside for this investment. An easy way is to have a savings account and you can move money from your checking to savings every month. Just make sure you don’t pull money from your savings and use it for other reasons.

Begin paying yourself first, if you aren’t doing that already.

This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any significant financial decisions.