How to Plan for Your Retirement in 2023
When you retire from the workforce, you no longer have a monthly income to pay your expenses. This is where retirement funds come in handy.
However, experts predict a major recession in the near future. The inflation and economic crisis have worsened, and people saving up for retirement have suffered an astounding loss of almost 3 trillion dollars in the United States.
If you’re also planning for your retirement, you’ve got to make smart choices that can secure your retirement fund in case a recession hits. There are several ways to plan your retirement, let’s take a look at them.
Setting Financial Goals
Starting planning for retirement early can help you invest smartly and grow your investments before you actually retire.
Decide what your financial goals are after retirement. Do you have a debt or a loan to repay? Do you need the retirement fund for your monthly expenses only? Do you want to set up an emergency fund for yourself or your spouse? Answering these questions can help you invest accordingly.
Setting Lifestyle Goals
Setting lifestyle goals will also impact how much you invest and where. If you’re planning to travel the world or go on a cruise with your friends and live a lavish life, you’ll need to invest and save more. If your goal is to live in a peaceful, waterside home in Florida, your savings will be according to those expenses.
Essentially, you need savings and social security to be between 70 percent to 90 percent of your annual income before you retire. For example, if a person earns around 80,000 dollars annually, they must invest in avenues that guarantee 60,000 to 65,000 dollars in their retirement funds.
Diversify Your Portfolio
There are multiple investment assets you can put your money in. However, not all of them are the safest, especially in the long term. Doing your research before investing in any asset is necessary. Let’s take a look at some lucrative investment options for your retirement fund.
Real Estate
One of the most popular investment options is real estate. Real estate is considered a secure long-term investment unless a major recession occurs. Even then, real estate doesn’t de value compared to other investment assets that take a big hit, like stocks, bonds, etc.
Real estate can not only grow in value over the years, but it can also provide you with rental income to manage your monthly expenses.
Traditional IRA
A traditional IRA plan helps individuals save up by giving them tax breaks. You won’t owe the government any tax until you take out the money when you retire.
Traditional IRA plans allow you to invest in multiple investment assets, including stocks, EFTs (Exchange Traded Funds), bonds, mutual funds, annuities, etc.
401(K) Account
If you’re employed, you must immediately start investing in a 401(K) account. Start out by adding a small amount and slowly going up every month. Your employer will also contribute to your account. You also get tax breaks and increasing interest rates make your investment grow exponentially.
Unlike a traditional IRA, you can easily take out money from 401(K) accounts without paying a hefty amount in taxes.
Precious Metals IRA
A precious metal IRA is like a traditional IRA which helps you add precious metals like gold, silver, platinum, etc, to your investment portfolio.
Precious metals are one of the safest investment options. These metals are a hedge against inflation because they gain value as the economy and the US dollar depreciate. Some of the best precious metal investment options include:
Gold
Gold is a popular precious metal. You can invest in gold in multiple ways, including buying gold bars, coins, bullions, gold stocks, gold EFTs, etc.
Gold is commonly used for making jewelry or currency. People usually invest in gold during political instability and recessions because it’s inversely related to the US dollar and grows in value when the economy collapses. The gold market is also stable, so you don’t need to worry about a significant rise or drop suddenly.
Silver
The silver market is a bit more volatile compared to gold because its prices depend on industry use as well as storage value. Silver is commonly used in the photography industry, medical products, electrical appliances, etc.
However, more volatility doesn’t necessarily mean it’s not a good option to invest. Silver often performs better than gold as well.
Platinum
Platinum is one of the rarest precious metals because it’s found beyond the earth’s crust. Only a handful of countries produce platinum, making it a rare and valuable metal to invest in.
Platinum’s prices, unlike gold and silver, depend on the supply and demand concept. Platinum is high in demand in automotive industries as it’s used in sensor chips in cars.
Palladium
Palladium is another scarce precious metal that’s used in the healthcare industry as well as the automotive industry. It’s used in dental equipment, machines, catalytic converters in vehicles, and more.
The demand for palladium has recently increased due to measures taken to control the rising rate of climate change. Palladium prices are also affected by supply and demand, making it a valuable asset to invest in these days.
If you’re planning to get a precious metal IRA or invest in precious metals, you’ll need a reliable precious metal investment dealer to work with.
Orion Metal Exchange is a precious metal investment company that works on American metal exchange. We can help you buy gold, silver, platinum, or palladium coins and bullions. Furthermore, we can help you open precious metals IRA and provide private vault storage. Contact us now for more information.
