Once you have a family or start concentrating on your career, retirement might escape your mind. Before you know it, you may only be left with a decade or even a few years to your retirement. If you plan for it, you should have a very successful and comfortable retirement. To make this happen, you need to start a retirement fund. Such a fund will look different for everyone, but the overall theme is investing as early as possible. In this article, we will look at some alternative investment vehicles so you can start investing for your retirement as early as possible.
Certificate of Deposit
A certificate of deposit is an arrangement where you lock your money for a given period. You earn interest on this money for every period, monthly or annually, that the money is in the account. When redeeming your money, you will be handed back your initial investment plus all the interest it has gained.
When choosing one, ensure that the interest rate is higher than inflation. This is because if things are the other way round, you might have more money with lower buying power at the end of your contract.
Gold & Silver IRA
A gold and silver IRA is an individual retirement option that lets you invest in precious metals instead of the conventional bonds, stocks, and other investment options. These IRAs are a great option because gold and silver have grown in value in the long term, which is how you should be viewing any retirement investment option.
Precious metals protect your retirement investment because they have reduced volatility and risk compared to other options. They have been able to withstand economic downturns, which is also the reason why many people invest in gold when the economy starts taking a downturn.
The best way to invest in a gold and silver IRA is through a precious metals IRA platform. Companies like Noble Gold Investments provide you with the platform and avenue to protect your retirement, diversify your portfolio and secure your retirement using IRAs backed by gold, silver, and other precious metals.
Annuities
You can buy annuities to create a personal retirement plan. Annuities provide you with a guaranteed income for the rest of your life. The key is knowing which arrangement would be better for you. Deferred annuities are paid into and paid out at a date that you set. Immediate annuities start paying out as soon as you put money into one.
Fixed-rate annuities pay you a guaranteed rate of return for the rest of your life. Variable annuities will pay depending on the performance of certain underlying investments such as mutual funds.
Deferred annuities with a fixed rate are great because you can pay into them for as long as you like and know exactly how much you will get every month. With immediate variable rate annuities, you might get more money when underlying investments perform better, but you risk not getting anything if underlying investments tank.
Conclusion
Planning your investment early is always best because of the power of compounding interest. In addition to the three options discussed above, you can diversify your retirement fund using other traditional investments like shares and bonds. Whether you want to learn more about investing or invest for the long term, the Motley Fool is an excellent resource.
