Getting an early start with your retirement planning is important because it generally takes quite a few years to gather the funds that will be necessary for you to have a comfortable living when you get to retirement age. If you start investing early in your career, your investments have the time they need to grow throughout the decades while you work so that your retirement years can be comfortable.
Today’s life expectancy has grown with the advance of science and medicine. This means that there will be more years in between retiring and death. Because of this, you will need even more money so that it will last you that much longer.
You can’t expect to retire on Social Security alone either. Today’s average benefits for Social Security are just about $1,180 per month, which just isn’t enough to live on. Also, the age for collecting complete Social Security benefits is going up. If you were born after 1942, you won’t be eligible for full benefits until you are 66 or older.
This is just one of the reasons you need to start investing for your retirement now. You also need to think about medical issues that you might have to deal with in your dotage. Why don’t we take a look at some of the investment options that are available and a tip or two for saving and investing money?
Bitcoin and Ethereum
Bitcoin and Ethereum are two types of cryptocurrency. Cryptocurrencies are a relatively new type of virtual money that is digital. It isn’t controlled by any sort of central financial institution, but every transaction is recorded digitally in what is known as the blockchain. Cryptocurrencies have value because there is only a finite number that will be produced. Also, more and more businesses are using and accepting them. You might have even noticed that when HBO was hacked earlier this year, the hackers demanded a ransom in Bitcoin.
If you are interested in investing in a cryptocurrency such as these, you can buy them outright if you want to go the easy route. Then, you can hang on to what you get and sell it for a profit at a later date. Alternatively, you can invest some time and money into mining for it by using a company like Genesis Mining.
Most of the time, when people think about bonds, they think of those low return for low risk type of investments. That being said, this theory is based on an assumption that whoever is actually issuing the bond has a credit rating that is outstanding. Companies with great credit ratings don’t have to pay interest rates that are high in order to attract their investors. Junk bonds however, are actually bonds that are issued by companies that have credit ratings that are very low. This means that they have to offer higher rates of interest, but it also means that they can default on the bond altogether. This is a risky investment strategy, but it does offer a higher return on your investment if it pays out.
Saving for Investing
If you want a helpful money saving tip or 3, you have come to the right place. One tip that everyone should know is to not spend more than you make.
Another thing you can do to save a bit of money is to change your bank so that you can take advantage of different perks and possibly earn more interest. You might be paying a monthly fee right now for your savings and checking accounts. If so, you might want to check on some of the offers other banks have. Some banks will even offer bonuses to people who open new accounts and set up their direct deposit. Others offer interest rates that make switching worth it.
One last tip is the 30-day rule. If you see something that you want to buy – be it big or small, and it isn’t an absolute necessity, wait for 30 days before you buy it. Often, once that period of time has passed, you will no longer have the urge to buy whatever it is and you will have saved all of the money that you would have spent on it.
By saving and investing, you will have the best chance possible to retire comfortably.