These three assets are the key to a successful retirement plan.
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When it comes to retirement planning, many people focus on saving money in a 401(k) or other retirement account and call it a day. However, having only one asset in your retirement plan is risky and may not provide the financial security you need in your golden years. To ensure a comfortable retirement, it’s important to diversify your assets and include a variety of investment options. Here are three must-have assets when retirement planning that most people overlook:
1. Real Estate: Real estate is often overlooked as a retirement asset, but it can be a powerful addition to your retirement portfolio. Owning real estate can provide a steady stream of rental income, which can supplement your retirement income and help cover living expenses. Additionally, real estate has the potential for long-term appreciation, which can increase the value of your retirement portfolio over time. Whether it’s a rental property, vacation home, or commercial real estate investment, including real estate in your retirement plan can provide stability and diversification.
2. Stocks and Bonds: While many people have retirement accounts that invest in stocks and bonds, it’s important to have a diversified portfolio that includes a mix of both. Stocks have the potential for high returns but also come with a higher level of risk. Bonds, on the other hand, provide a steady stream of income and offer more stability. By including both stocks and bonds in your retirement plan, you can benefit from the growth potential of stocks while also having a buffer against market volatility through bonds.
3. Annuities: An annuity is a financial product that provides a guaranteed stream of income for a set number of years or for the rest of your life. Annuities can be a valuable addition to your retirement plan as they offer a predictable income that can help cover living expenses and provide peace of mind. There are different types of annuities, including fixed, variable, and indexed annuities, each with its own set of benefits and drawbacks. By including an annuity in your retirement plan, you can create a reliable source of income that complements your other assets.
While having a 401(k) or other retirement account is important, it’s not enough to rely on this one asset alone for your retirement planning. By diversifying your retirement portfolio with real estate, stocks and bonds, and annuities, you can create a well-rounded plan that provides financial security and stability in your golden years. Take the time to consider all your options and work with a financial advisor to create a retirement plan that includes these three must-have assets.
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Wow! What an eye opener. Just realized that my wife of 43 years is my most important asset.
I've been diligently working, saving, and investing toward financial independence and early retirement, but the economy since the pandemic has eaten up the majority of my $3 million portfolio. I want to know: Do I keep contributing to my portfolio in these unstable markets, or do I look into alternative sectors?
You only deal with wealthy people, right?
What whiteboard program are you using in your videos, just curious. 🙂
I’d rather be rich and miserable than poor and miserable.